Kenya is poised to receive a substantial boost of USD 70 million from the Climate Investment Funds (CIF) as part of its Renewable Energy Integration (REI) investment program.
This initiative, recently approved by the CIF Trust Fund Committee, aims to propel the incorporation and utilization of renewable energy within Kenya’s national grid.
The overarching objective of this plan is to facilitate Kenya’s transition to 100 percent clean energy by the year 2030, aligning with the nation’s climate goals of reducing greenhouse gas emissions by 32% before 2030 and achieving Net Zero status by 2050.
Embedded within CIF’s REI program, this investment is specifically tailored to address the challenges associated with integrating clean and intermittent power sources in developing economies.
The program encompasses a range of measures, including supply/demand side flexibility enhancements such as enabling technologies, infrastructure development, market design improvements, and advancements in system operations. Additionally, it emphasizes electrification and demand management strategies.
Currently relying on renewable sources for nearly 90% of its power generation, with 45% from geothermal and 26% from hydropower, Kenya faces challenges in meeting peak demand during evening hours and managing surpluses from geothermal and wind generation at night.
To tackle these issues, Kenya’s REI plan will focus on improving dispatch, grid stability, and flexibility. It will also lay the groundwork for increased private sector investment in innovative storage technologies, such as battery storage and pumped hydropower.
The plan anticipates the surge in electric mobility and cooking, preparing the energy system for such advancements, and aims to boost variable renewable energy, like wind and solar, from 19% to 30% by 2030.
In a collaborative effort, the plan is expected to mobilize at least an additional USD 243 million from both public and private sectors through implementing partners, namely the African Development Bank and the World Bank Group.
The initial allocation of USD 46.4 million from CIF will fund two projects: the Kenya Renewable Energy Integration Project (KREIP) and the Kenya Electricity Modernization Project (KEMP).
