Solar energy is an ideal alternative source of energy because of its potential in the region. Most of the countries experience sun nearly year round and solar radiation of between 4 – 6 kWh/m2/day has been estimated.

The main barrier to use of solar energy is the high cost of solar energy technologies coupled with the lack of purchasing power of the population. Several strategies have been put in place by governments to promote solar energy, especially for rural electrification.

It is a good opportunity for international companies to introduce new technologies that can cater to above barriers by saving costs of technologies in order to impact the purchasing power in the region. 

Wind energy is a new concept in East Africa and some projects were implemented in the region, but not yet exploited that much in most of the Eastern African countries. It has been estimated that the resource is exploitable in the range 2.5 – 6 m/s in most of the countries.

The World Bank undertook the Energy Sector Management Assistance Program (ESMAP) to construct an energy map in East Africa by using satellite images and so far has invested more the USD3 millions in the region.

It is a huge opportunity for companies to pioneer the wind energy industry in the region, as it is a well-needed technology solution to many areas in East Africa. 

Hydropower is an important renewable source of energy; it plays an important role in the region’s energy system and its development. As per today in Eastern Africa less than 10% of its potential has been developed, as the regional countries are open to invest and develop such technologies in their countries.

Electricity generation from hydropower in Kenya was measured at 4,233 million kilowatt hours in 2020. The amount increased from 3,205 million kilowatt hours in the previous year. Hydropower is the second main source of electricity generation in Kenya, right behind geothermal power.

In Uganda, the Government set out plans to increase the installed capacity to 3500 MW by 2025, and prepare for achieving the required 41 738 MW by 2040.

In May 2021, the African Development Bank (AfDB) and the Government of Tanzania signed loan agreements totaling USD 140 million to finance the construction of the 50 MW Malagarasi hydropower plant in Western Tanzania.

The Hydropower industry in East Africa is incising with a potential of a regional yearly growth, pared with huge government infrastructure projects.

The 2010 discovery at the Windjammer gas field by the American firm Anadarko opened a new chapter for both East Africa and global LNG markets. It kicked off a series of finds in the region over several years, resulting in around 3.4 trillion cubic meters (tcm) of proven natural gas reserves for both Mozambique and Tanzania – just under 2 percent of the world’s total.

The gas discoveries in East Africa coincided with significant finds in the Eastern Mediterranean (such as in the Tamar and Leviathan gas fields in Israel in 2009 and 2010, respectively, and in Cyprus’ Aphrodite in 2011). Yet substantial exports from the Eastern Mediterranean region have not materialized, with countries in this region still haggling over export options. In this respect, East Africa is much more relevant to global LNG trade than the Eastern Mediterranean.

Tanzania has substantial gas reserves and had hoped to start constructing its LNG export terminal in 2022, with exports expected by 2028. However, in January 2021, project leader Equinor pulled out, citing “poor” project economics. The effort faced several setbacks due to Covid-19, which pushed companies to slash investment, and saw several failed rounds of negotiations between the government and project partners.

However, prospects for the terminal received a boost after the March 2021 election of a government friendlier to investors. In June of this year, the new administration signed a framework agreement with Equinor and the United Kingdom’s Shell that Is set to initiate the construction of the LNG terminal to commercialize the country’s deep water offshore gas reserves.

The appeal of East African natural gas to international investors does not only stem from the volumes involved; project economics are equally important. For instance, LNG projects in Mozambique have one of the lowest breakeven prices – the price of gas needed to cover costs – in the world. Although the same cannot be said of Tanzania, the election of a more pro-business government and the rise in LNG prices have improved the competitiveness of the country’s gas.

East Africa’s geographic location should also lift its export potential, with easy access for cargos to key gas markets in Asia and Europe. For instance, LNG cargo coming from East Africa will cross fewer chokepoints than one from Qatar, and travel a shorter distance compared to American or Australian equivalents. The development of gas markets within Africa would be a further boon to the region.

Geothermal opportunities exist across East Africa’s Great Rift Valley - in Ethiopia, a geothermal power plant in the Aluto Langano region is under construction. Ethiopia's main power source, hydroelectric, has become unstable due to the impact of climate change. But it has a huge geothermal potential - approximately 10,000 MW of electric power. 

In Djibouti, geothermal power production is in its infancy, "There is 1000MW of potential power in the country and the current demand for electricity in Djibouti is several hundred megawatts so if they can develop one-tenth of the potential this will be a big impact on the energy mix of this country."

Tanzania is in dire need to diversify its electricity mix similar to other countries in East Africa. Ongoing drought has greatly reduced the flow of rivers and thereby the resources to drive hydropower plants. Tanzania Geothermal Development Company (TGDC), a subsidiary of state-owned Tanzania Electric Supply Company (Tanesco) is now detailing plans for up to 200 MW geothermal development over the next four years

In Kenya's Olkaria, on the edge of Hell’s Gate National Park, are five power plants that produce around 800MW of energy - that’s enough to power more than four million homes a year. Kenya is the 7th largest producer of geothermal energy in the world, and is blazing a trail in the East African region.

East Africa's immense underground heat is driving a green energy revolution, leading country after country down the road to 100 percent domestically produced renewable energy. The East African counties are looking for industries with new technologies that can manufacture an healthier and more suffusion alternatives to existed out-dated methods that are currently available in the East African market.