The Climate Investment Funds (CIF) has approved a $70 million initiative, initially allocating $46.39 million, to promote the integration and utilization of renewable energy within the Kenyan grid. This strategic move aims to facilitate Kenya’s transition to 100 percent clean energy by 2030.
Endorsed as part of the CIF’s Renewable Energy Integration (REI) investment program, this approval aligns with Kenya’s goal of reducing greenhouse gas emissions by 32 percent by 2030 and achieving Net Zero by 2050.
Kenya’s CIF REI plan is designed to enhance access to clean, affordable, and reliable electricity nationwide. The plan is expected to attract an additional $243 million from both public and private sectors, facilitated by implementing partners such as the African Development Bank and the World Bank Group.
Presently, nearly 90 percent of Kenya’s energy comes from renewable sources, including 45 percent from geothermal and 26 percent from hydropower. Despite this, the system encounters challenges in meeting peak demand during evening hours, and surplus generation from geothermal and wind is sometimes underutilized at night.
To address these challenges, Kenya’s REI investment plan focuses on improving dispatch, grid stability, and flexibility. It also paves the way for future private sector investments in innovative storage technologies, including battery storage and pumped hydropower.
The plan aims to prepare the energy system for the anticipated increase in electric mobility and cooking. Additionally, it contributes to expanding variable renewable energy, such as wind and solar, from 19 percent to 30 percent by 2030.
The CIF’s REI program, established to tackle issues related to deploying clean and intermittent power sources in developing economies, supports a mix of supply and demand-side flexibility measures. These include enabling technologies, infrastructure, market design and system operations improvement, electrification, and demand management, all while promoting social inclusion and leveraging private sector financing.
Ten countries, including Kenya, are participating in the program, with Brazil, Colombia, Costa Rica, Fiji, and Mali having their investment plans endorsed in 2023.
Luis Tineo, Interim CEO of Climate Investment Funds, expressed excitement about the impact of concessional funding on delivering power to Kenyan consumers, supporting the country’s aspirations in various sectors, from renewable energy to e-mobility and clean cooking.
Alex Wachira, Principal Secretary of the State Department for Energy in Kenya, expressed gratitude for Kenya’s participation in the REI program and acknowledged the valuable support from Climate Investment Funds. The program is expected to enhance renewable energy integration, reduce greenhouse gas emissions, and contribute to achieving Kenya’s clean energy goals.
Keith Hansen, Country Director for Kenya at the World Bank, commended Kenya’s leadership in the transition to 100 percent clean energy and highlighted the World Bank’s support in developing a smart and flexible energy system.
Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank, welcomed the endorsement of the REI Investment Plan for Kenya as a transformative step towards a sustainable energy future. He emphasized the collective commitment to innovation, carbon emissions reduction, and resilient energy infrastructure.
Mary Porter Peschka, Regional Director for Eastern Africa at the International Finance Corporation (IFC), highlighted IFC’s commitment to supporting the growth of clean and affordable energy. By leveraging private sector expertise and resources, IFC aims to increase access to innovative energy solutions in Kenya, including battery storage, mini-grids, clean cooking, and e-mobility.
