ABSTRACT
This chapter demonstrates the ways in which the development of the off-grid solar Photovoltaic (PV) market in Kenya resembles processes of Socio-Technical Innovation System Building. It focuses specifically on the implications of the observations for policy and practice. In 1998, the International Finance Corporation (IFC) began implementing a project in Kenya that was intended to transform the market by addressing a perceived finance constraint. The Photovoltaic Market Transformation Initiative (PVMTI) made USD 5 million finance available on both the demand and supply sides of the Kenyan PV market, which would be disbursed in loans to consumers and suppliers over the ten-year life of the project. Lighting Africa programme has taken a more systemic approach to developing the market, albeit a different segment of the market than the target of PVMTI. The Climate Innovation Centres (CICs) build local capacity and address barriers to innovation by offering a tailored suite of financing and services that support domestic SMEs.
