KENYA – The Trust Fund Committee of the Climate Investment Funds (CIF) has endorsed a US$70 million plan, with an initial allocation of US$46.39 million, to advance the integration and utilization of renewable energy in the Kenyan grid.
This approval, with an initial allocation of US$46.39 million (KSh7.4 billion), is part of CIF’s Renewable Energy Integration (REI) investment programme and will help Kenya’s ambition to reduce greenhouse gas emissions by 32 per cent by 2030 and achieve Net Zero by 2050.
The programme is expected to mobilize at least an additional US$243 million (KSh39 billion) from the public and private sectors through implementing partners including the African Development Bank and the World Bank Group, the latter supporting Kenya in developing a smart and flexible energy system.
“The government expresses its gratitude for being among the countries participating in the Renewable Energy Integration Program (REI). REI facilitates enhanced integration of renewable energy to reduce greenhouse gas emissions in pursuit of the country’s Nationally Determined Contributions goal,” said Alex Wachira, the Principal Secretary in the State Department for Energy.
“Additionally, the plan will assist Kenya in her ambition to achieve 100 percent clean energy in the power system by 2030 and place it well on the trajectory to achieving Net Zero by 2050.”
Currently, the share of renewable energy in Kenya is almost 90 percent – including 45 percent geothermal and 26 percent hydropower. But the system faces challenges.
During evening hours, it struggles to meet peak demand, but later, at night, generation surpluses from geothermal and wind are sometimes not dispatched.
Kenya’s REI investment plan will improve dispatch, grid stability, and flexibility to address these issues. It will facilitate future private sector investment in innovative storage technologies, such as battery storage and pumped hydropower.
The energy system will also be better prepared for a significant increase in electric mobility and cooking. The plan contributes to the expansion of variable renewable energy, such as wind and solar, from 19 percent to 30 percent by 2030.
CIF has established the pioneering REI program precisely to address the issues linked to the deployment of clean and intermittent power sources in developing economies.
REI can support a mix of supply/demand side flexibility measures— enabling technologies, enabling infrastructure, market design and system operations improvement, and electrification and demand management; while advancing social inclusion and leveraging private sector financing.
Ten countries have been selected to take part in this program, with Brazil, Colombia, Costa Rica, Fiji and Mali’s investment plans endorsed by the CIF Trust Fund Committee in 2023.
“CIF’s concessional funding will be instrumental in getting power to Kenyan consumers where and when they need it. Through the Renewable Energy Integration investment program, three of our multilateral development bank partners are collaborating with us to build a powerful coalition to boost Kenya’s ambitions,” Luis Tineo – Interim CEO, Climate investment Funds said.
“We are very excited to support Kenya in their trailblazing effort to reach universal energy access while embracing low carbon technology, from renewable energy and geothermal development to e-mobility and clean cooking.”
The Climate Investment Funds is one of the largest multilateral climate funds in the world. It was established in 2008 to mobilize finance for low carbon, climate-resilient development at scale in developing countries.
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