Kevin Johnstone is a researcher in IIED’s Shaping Sustainable Markets research group
So far this year, 75% of global investment commitments in off-grid solar technology have gone to just three companies, according to GOGLA’s latest report – a troubling trend since 2012.
Kenya is a useful example of this trend, since it has seen remarkable growth in the market for decentralised energy systems – particularly in the solar home system (SHS) sector – during this period. But despite this growth, companies that are owned and managed by Kenyans have struggled to capture a significant share of the market.
Investments can be secretive and difficult to track, but Wood Mackenzie’s 2019 report also revealed that investors have favoured just a handful of companies in the SHS sector.