The World Economic Forum found that renewable resources created the cheapest form of electricity throughout the world. The cost of fossil fuels has continued to climb. The cost of renewables has slowly been decreasing. Countries that are pushing for the continued increased use of renewables show a decrease in cost for consumers, as well as a smaller footprint upon the environment around them. The last couple of years has shown a separation in cost of electricity when comparing companies that produce power with natural resources, compared to those that use renewables.
That is great news for Kenya since they have always had to import most of the natural resources, due to the lack of significant amounts within their own country. The cost to buy, and transport, natural resources to plants designed to produce electricity raise the cost for retailers. Retailers charge enough to cover their own costs, and tack on whatever percentage of profit that they feel is fair, if it stays within the rules that have been set into place by the local government.
Speaking of government, the Kenyan government has enacted a plan to try and achieve an amazing goal that would decrease the footprints that their country leaves on the planet. Sixty percent, or more, of the electricity used will be made from renewable resources. Africa News states that the government is pushing forward towards this goal by offering companies that use renewables special incentives. The companies that are not green will also be offered financial reasons of why they should shift over.
If you are curious about the true differences of the cost that are handed down to you, go to a site that will compare electricity in NSW. Punch in some information and check the costs associated with green companies, and traditional producers. The differences may make you rethink the service provider that you are currently using.
Wikipedia offers a good chart, for reference, which needs to be discussed briefly. It separates out each type of resource used to produce electricity, in the ranks that they are used. Keep in mind that these numbers will change as the production of electricity from renewable resources increases.
- Geothermal-43%
- Hydro-32%
- Wind-10%
- Oil-10%
- Biofuels-less than 1%
- Solar-less than 1%
You can see that there are substantial amounts of room for improvement with renewable resources. Solar power could be utilized much more often, and hydro resources could be pushed harder. If you look at the charts given by Wikipedia you will see that electricity production percentages have shifted towards geothermal sources, and away from renewables.
The plan that the Kenyan government has set in motion will begin to show on this table as companies move towards renewable resources, and away from fossil fuels. The government plan had a setback with the covid-19 pandemic that has crashed throughout the countries of the world, but they have recently gotten back on track. The plan for renewable electricity production increases will move forward once again.
You may still be wondering how renewable energy will decrease the amount of the cost of electricity that is handed down to you on your bill. The answer is quite simple if you look at it from a mathematical point of view. Lower costs to produce means the retailers will be offered a lower price. Retailers that are charged less will decrease the amount that they charge you. The opposite can be said as well. So, since renewable energy is cheaper to produce than natural resources, in most cases the companies that take advantage of renewables will be able to offer cheaper rates to you.