• Energy industry experts and policymakers are meeting in Nairobi for the International Energy Agency 9th Annual Global Conference on Energy Efficiency, the first time the conference is being hosted in Africa.
    • European Commissioner for Energy Kadri Simson and Kenya’s Cabinet Secretary of Energy and Petroleum Davis Chirchir launched the Green Resilient Electricity System Program for Kenya.
    • The Green Resilient Electricity System Program will support Kenya’s goal of a complete transition to 100per cent clean power generation by 2030 and it will boost Kenya’s sustainable energy future.

    The green energy economy strategy seeks to build on the country’s current economic strengths to secure a more sustainable future. Kenya’s ambitious plan to fully transition to 100 per cent clean power generation by 2030 has received a major boost, with the European Union backing the initiative.

    This comes as leaders, energy industry experts, and policymakers meet in Nairobi for the International Energy Agency’s (IEA) ninth Annual Global Conference on Energy Efficiency, the first time the conference is being hosted in Africa (May 21-23).

    European Commissioner for Energy Kadri Simson and Kenya’s Cabinet Secretary of Energy and Petroleum Davis Chirchir launched the Green Resilient Electricity System Program for Kenya with the support of Global Gateway.

    The Green Resilient Electricity System Program will support Kenya’s goal of a complete transition to 100 per cent clean power generation by 2030 and it will boost Kenya’s sustainable energy future.

    This is by providing critical investments and capacity-building measures to expand the country’s production of green electricity as well as improving grid stability and efficiency.

    The Program will support Kenya’s socio-economic development and green transition. It will boosts the renewable energy sector by increasing electricity generation capacity through additional generation from hydro, geothermal, and solar sources and strengthening reliability and efficiency of the transmission system.”

    The Program has been developed under the EU’s Global Gateway initiative in close cooperation with the Kenyan government, and the Team Europe partners KFW Development Bank and European Investment Bank (EIB).

    Technical assistance and capacity building

    Green energy
    Team Europe and Kenya are investing up to $277.8 million to finance the green energy program. [ photo/ X.COM]
    According to plans, the Program will provide technical assistance and capacity building for the Kenyan implementing partners to ensure the successful and timely roll-out of the project components.The team from Europe and Kenya are investing up to $277.8 million to finance the Program, including the EU’s contribution of $21.7 million in grants.Chirchir said by making the Kenyan energy system more resilient, efficient, and clean, the Program will contribute to Kenya’s energy and climate goals, powering socio-economic growth and transformation.

    “It is well supporting green industrialisation, employment, and reduction of greenhouse gas emissions,” Cabinet Secretary said.

    Global Gateway is the biggest climate finance contributor in the world, contributing at least a third of the world’s public climate funds.

    The $162.8 billion Global Gateway EU-Africa investment package aims to support Africa for a strong, inclusive, green, and digital recovery and transformation.

    Global Gateway invests $3.7 billion in Kenya for climate and nature, developing the renewable energy industry, investing in sustainable agricultural value chains to climate resilience and protecting the environment.

    For example, the EU is supporting the development and operations of the Nairobi Clean Bus Rapid Transit Line 3 (BRT 3) as part of the strategic Northern Corridor, which will boost trade, jobs, and prosperity in Kenya and the region. Team Europe and Kenya are investing up to $378.9 million. This operation will build the first dedicated electric bus line in East Africa.

    Read also: Wärtsilä Energy offers tips on how Africa can navigate energy transition and grid reliability.

    Green Energy Transition & Investment Plan in Kenya

    As part of its journey towards achieving its target of 100 per cent clean energy, the country has developed the Kenya Energy Transition & Investment Plan (ETIP) based on its commitment to championing the fight against climate change.

    The ETIP provides a clear pathway for the Energy Sector to contribute to the attainment of Kenya’s climate ambition of Net Zero emissions by 2050, with opportunities for financing and investment.

    According to Energy Principal Secretary Alex Wachira, it further aligns with plans being undertaken by other government entities to ensure synergy and acceleration in its implementation.

    “The plan provides a harmonised roadmap for the energy sector with a holistic approach that includes the investment requirement for its implementation. It sets the stage for the development of energy sector targets to be incorporated into future National Blueprints,” Wachira said.

    The ETIP identifies the main decarbonisation technologies that will anchor an orderly transition, including renewable energy, green hydrogen, e-mobility, energy storage, and clean cooking. The Principle Secretary noted that it further supports the scoping of projects to catalyse funding from both public and private sources.

    Kenya’s national grid currently operates at 3 Gigawatts, with 92 per cent of that power being renewable, mainly from geothermal wells in the Rift Valley.

    “Our ambition to achieve 100 per cent clean energy and a 100 Giga Watt grid, entirely renewable, by 2040 are on the right trajectory ,” President William Ruto said during the Africa Climate Summit Ministerial Conference in Nairobi last September.

    Read also: Kenya secures multi-billion green deals at Africa Climate Summit. 

    World Bank and other players

    Apart from Europe, Kenya’s ambitious plan has also received support from the World Bank, among other entities.

    This includes a $70 million plan to boost the country’s clean energy program.

    The initial allocation of $46.39 million by the Trust Fund Committee aims to advance the integration and utilisation of renewable energy in the national grid.

    Last year, Kenya was also among the countries named for a combined $88.9 million from the United States Agency for International Development (USAID) to fund renewable energy projects.

    The billions to be released through the Power Africa initiative for East and Central Africa will fund the construction of 10 million worth on-grid and off-grid infrastructure for an estimated 50 million households in sub-Saharan Africa.

    To achieve a solid transition, Africa is estimated to require an estimated $100 billion annually up to 2040.

    Currently, nearly 600 million Africans lack access to electricity with another 150 million grappling with unreliable power. About a billion need access to clean cooking energy.

    In a landmark moment for the global energy (COP28) it was agreed to transition away from fossil fuels, triple renewable power and double energy efficiency by 2030.

    Countries are committed to working together to increase installation of renewable energy generation capacity to at least 11,000 GW by 2030, taking into consideration different starting points and national circumstances.

    Kenya, South Africa, Nigeria, Ghana and Ethiopia are some of the countries implementing ambitious renewable energy development policies in the continent.

    Read also: Climate emergency affecting 4 out of 5 businesses in emerging economies.

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Martin Mwita is a business reporter based in Kenya. He covers equities, capital markets, trade and the East African Cooperation markets.

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