Zebra in front of the Olkaria I geothermal power plant in Hell's Gate National Park, Kenya.Credit: Matyas Rehak / Alamy Stock Photo
In 2018, Kenya set a goal to be 100% powered by renewable energy by 2020 – a goal that was later pushed to 2030. The country has made great strides in reaching that goal, with renewable energy now representing 90% of its electricity input1, up from 50% in 2000.
It has become third highest ranking African country in the World Economic Forum’s global Energy Transition Index (ETI), after Morocco and Namibia. The last stretch before the finish line, however, may be the hardest part. More grid flexibility and diversification of energy sources is needed to achieve Kenya’s ambitious goal in the next five years.
Energy mix percentages can fluctuate over time due to various factors such as seasonal changes, new power plant installations, and policy shifts. A recent report by the Climate Investment Fund (CIF) found that geothermal energy contributes the lion’s share of 45% to the Kenyan electricity grid, while hydropower contributes 19%, solar energy 17% and wind just 3%. The country’s geothermal potential in the Rift Valley has boosted its prospects in geothermal energy, with an installed capacity of close to 1,000 MW. The Rift Valley is also the location of Africa’s largest wind farm, the Lake Turkana Wind Power Project.
Kenya’s strong policy and regulatory framework has played a crucial role in this transition, says Mohamed Adow, director of Powershift Africa, a climate and energy NGO based in Nairobi. The Energy Act of 2019 provides the legal foundation for renewable energy development, and the Least Cost Power Development Plan for the period between 2021 and 2030 ensures that new energy projects are both cost-effective and sustainable.
The Energy and Petroleum Regulatory Authority’s director general, Daniel Kiptoo, explains that the Kenyan government’s commitment to renewables led it to invest in geothermal energy, as the private sector was reluctant due to the financial risks of exploration and drilling. The government also established the Geothermal Development Company 20 years ago, which led to the opening of three plants.
The Kenyan government has enacted several policies to encourage the private sector to invest in renewable electricity.
Adow adds that state policies are aligned with global climate goals like the UN’s 2030 Agenda for Sustainable Development, which attracts funding from various international bodies.
The Lake Turkana Wind Power Project, for instance, was funded by the Africana Development Bank (AfDB), the European Investment Bank (EIB), and Standard Bank, and is now supplying approximately 15% of Kenya's electricity needs. “This reduces the need for thermal power plants, cutting down carbon emissions by approximately 700,000 tonnes annually,” says Adow. A year ago, the Trust Fund Committee of the Climate Investment Fund (CIF) endorsed a $70 million plan, with an initial allocation of $46.39 million, to advance the integration and utilisation of renewable energy in the Kenyan grid and reduce greenhouse gas emissions by 32% by 2030. The CIF’s Renewable Energy Integration (REI) investment programme aims to mobilise an additional $243 million from the public and private sectors through AfDB and the World Bank with the aim of enhancing expansion of wind and solar, from 19% to 30% by 2030, Adow explains
“Kenya’s national ambition proved to be a great match for our pioneering REI programme – REI was created to get clean energy to consumers where and when they need it, addressing the issues linked to the deployment of renewable intermittent power sources in developing economies,” says Daniel Morris, Clean Energy Lead at CIF.
There are more initiatives to replace diesel powered mini grids with solar hybrids in remote areas. Other projects such as the Kenya Off-Grid Solar Access Project is spearheading efforts to provide electricity and clean cooking solutions in rural areas.
Challenges ahead
Despite significant progress towards a clean energy grid by 2030, Kenya is still faced with a few obstacles to achieve their final 10%, and still needs to address energy needs beyond electricity, as renewables form only 18% of the total energy matrix in the country. A review published last year in Energy Strategy Reviews1 suggests that renewable energy extraction in Kenya is still low due to poor implementation of policies.
“One of the biggest hurdles is the reliability of the national grid. While renewable energy sources are expanding, the grid infrastructure needs significant upgrades to handle fluctuating input from solar and wind energy. Transmission losses, voltage instability, and insufficient storage solutions could undermine the efficiency of renewable power distribution,” Adow says.
The high initial investment cost associated with renewable energy infrastructure is also a limitation. While geothermal and wind power plants have low operational costs, the upfront capital required for drilling, battery storage, and grid modernization remains a barrier, says Adow.
Layi Alatise, the deputy director of engineering at the Circular Economy Powered Renewable Energy Center-CEPREC says there is a need to invest more in storage to ensure stable and consistent supply.
Kiptoo explains that Kenya will enhance investment in grid infrastructure to support the integration of variable renewable energy sources, which involves upgrading transmission and distribution networks to cope with the growing share of renewables, thus ensuring reliability and reducing losses.
“Kenya has to set the necessary frameworks to attract private sector [investments]; not only building new transmission lines and substations, but also monetizing the existing infrastructure. Innovative and tailored financing mechanisms, therefore, will be crucial for energy transition,” he adds.