The Climate Investment Funds (CIF), through its Trust Fund Committee, has endorsed a $70 million plan, with an initial allocation of $46.39 million.
- The funds are meant to advance the integration and utilization of renewable energy in the Kenyan grid, enabling the country’s transition to 100 percent clean energy by 2030.
- This approval, as part of the Climate Investment Renewable Energy Integration (REI) investment program, will support Kenya’s ambition to reduce greenhouse gas emissions by 32% by 2030 and achieve Net Zero by 2050.
- Kenya’s CIF REI plan will support access to clean, adequate, affordable, and reliable electricity in the country.
It is expected to mobilize at least an additional $243 million from the public and private sectors through implementing partners—the African Development Bank and the World Bank Group.
“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
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. Additionally, the plan will assist Kenya in her ambition to achieve 100% clean energy in the power system by 2030 and place it well on the trajectory to achieving Net Zero by 2050.
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.
Alex Wachira – Principal Secretary, State Department for Energy – Kenya expressed the Government of Kenya’s gratitude for being among the countries participating in the Renewable Energy Integration Program and acknowledges the valuable support extended by the Climate Investment Funds
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.
“Kenya is a front runner in the transition towards 100 percent clean energy by 2030 while ensuring universal access to electricity is achieved at the earliest, “said Keith Hansen, Country Director for Kenya – World Bank.
ALSO READ: Africa’s Climate-Aligned Infrastructure Receives $175m Pledge
