THE ROLE OF PUBLIC AND PRIVATE PARTNERSHIP MODELS IN THE DEPLOYMENT OF RENEWABLE ENERGY: A CASE STUDY OF KENYAN GEOTHERMAL ENERGY
Kenya stands as a pioneer in renewable energy exploration within Sub-Saharan Africa. A key contributing factor to its success lies in the adoption of effective policies and strategies that encourage private sector involvement in renewable energy projects. Kenya has embraced the Public and Private Partnership model (PPP) to foster the development of its geothermal energy resources, thus achieving a substantial portion of its energy from hydro and geothermal sources. Despite other East African countries’ efforts to attract private sector investment in renewable energy through energy law reforms, they have yet to achieve significant progress towards a green energy transition. This study aims to examine the success factors behind PPP implementation in renewable energy projects across East African countries, with a particular focus on Kenya’s experiences. To achieve this goal, the research will conduct a comprehensive review of research articles, case study, and utilize the Institutional Analysis and Development Framework (IDA) as an analytical tool to assess the implementation of PPPs in the selected case. The findings of the study indicate that the success factors for the Olkaria III PPP project include a clear delineation of roles and responsibilities among the involved parties, transparency, and a favorable legal and regulatory framework. These findings imply that effective PPP models necessitate well-defined policies, rules, regulations, and clear objectives that can harness the benefits of innovation, technology, managerial expertise, and private financing.
Keywords: IDA Framework, PPPs, Kenya, Geothermal, Factors.
