The trust fund committee of the Climate Investment Funds (CIF) has given its endorsement for a concessional funding of $70 million (Sh11.2 billion) to support the integration and utilization of renewable energy in Kenya.
This financial backing aligns with Kenya’s ambitious plan to transition to 100 percent clean energy by 2030.
The approved funding, initially allocated at $46.39 million (Sh7.4 billion), is part of CIF’s Renewable Energy Integration (REI) investment program. It is designed to aid Kenya in its commitment to reduce greenhouse gas emissions by 32 percent by 2030 and achieve Net Zero by 2050.
CIF, established in 2008, is one of the largest multilateral climate funds globally, with a primary focus on mobilizing finance for low-carbon, climate-resilient development in developing countries.
Alex Wachira, the Principal Secretary in the State Department for Energy, expressed the government’s gratitude for participating in the Renewable Energy Integration Program.
The REI program aims to enhance the integration of renewable energy to meet the country’s Nationally Determined Contributions goal, facilitating Kenya’s pursuit of 100 percent clean energy in the power system by 2030 and putting it on a trajectory towards achieving Net Zero by 2050.
The program is expected to leverage an additional $243 million (Sh39 billion) from both public and private sectors through implementing partners such as the African Development Bank and the World Bank Group. The World Bank Group is supporting Kenya in developing a smart and flexible energy system.
While Kenya currently boasts a 90 percent share of renewable energy, including 45 percent from geothermal and 26 percent from hydropower, it faces challenges meeting peak demand during evening hours and sometimes experiences surplus generation at night.
The REI investment plan aims to enhance dispatch, grid stability, and flexibility, addressing these challenges. It also seeks to pave the way for private sector investment in innovative storage technologies like battery storage and pumped hydropower, preparing the energy system for a significant rise in electric mobility and cooking.
The plan contributes to increasing the share of variable renewable energy, such as wind and solar, from 19 percent to 30 percent by 2030.
Luis Tineo, interim CEO at Climate Investment Funds, emphasized the significance of the concessional funding from CIF in delivering power to Kenyan consumers when and where it is needed.
He commended the collaborative efforts with multilateral development bank partners and expressed excitement about supporting Kenya’s pioneering efforts to achieve universal energy access while embracing low-carbon technology.
