- Kenya rejects renewable energy proposals to avoid overproduction and rising electricity costs.
- The government is deferring new projects until the 2040s to balance energy generation with demand.
- Kenya’s renewable energy capacity reached 2,859.4 MW in June 2024, 80.04% of the total energy capacity.
Kenya has rejected several proposals from renewable energy investors, citing worries about rising electricity costs. Officials fear that overproduction could drive up energy tariffs, burdening consumers.
Benson Mwaniki, the Director of Renewable Energy, said Kenya cannot immediately shift to solar energy, deferring such plans to the 2040s. He explained that accepting too many renewable projects now would result in excess electricity production, raising power bills. “If we generate too much, tariffs will rise,” Mwaniki stated, stressing the need to match production with consumption.
Kenya is carefully mapping out its energy strategy. The country plans to align generation with future demand forecasts to prevent oversupply. Mwaniki noted that officials are looking at storage solutions to preserve cheap energy from sources like geothermal. This energy could then power the grid during peak demand, reducing waste.
The Geothermal Development Company (GDC) has mapped geothermal resources to attract private investors. The government is keen to involve the private sector but plans to spread projects out until the 2040s to avoid overwhelming the grid.
“We are planning for these projects so they don’t all come simultaneously,” Mwaniki said. He explained that Kenya has deferred interests to 2041 and 2043. This delay ensures a gradual integration of renewable projects while maintaining stable energy prices.
Though Mwaniki did not specify how many investors have shown interest, he warned that generating more power than Kenya needs would drive costs up. To manage this, Kenya is developing schemes that allow projects based on projected demand at specific times.
“If we produce more than we need, electricity costs will increase,” Mwaniki emphasised. He added that storage solutions are crucial to prevent wasting cheap energy, like geothermal, by storing it during peak times. This way, Kenya can better balance its energy supply with actual demand, keeping costs stable.
As of June 2024, Kenya’s installed renewable energy capacity stands at 2,859.4 MW, which makes up 80.04% of the country’s total capacity. This includes 2,427.1 MW of grid-linked renewable energy and 427.7 MW of captive renewable power.
Kenya is also planning for the energy needs of 2025 and 2026. Mwaniki explained that the government carefully selects energy sources to meet projected yearly demand. This approach ensures the country only accepts projects that fit within its current energy needs and future forecasts.
Mwaniki highlighted that Kenya must balance its power mix to ensure affordable and adequate electricity. He emphasised the need for a careful, phased approach to renewable energy integration to avoid driving up consumer costs.
In conclusion, while Kenya remains committed to renewable energy, it cautiously avoids excess supply and increased tariffs. The country is balancing investor interest with the need to maintain affordable electricity and a stable energy grid.