- Kenya rejects excessive renewable energy proposals to avoid power overgeneration and rising electricity costs.
- The government carefully manages renewable energy projects to balance supply with future demand, focusing on energy storage and cost control.
Kenya has turned down several proposals from renewable energy investors, citing concerns over the risk of power overgeneration, which could lead to higher electricity costs. Benson Mwaniki, Director of Renewable Energy, explained that the current level of interest, particularly for solar projects, exceeds the country’s capacity to absorb additional power generation.
Mwaniki emphasised that Kenya has made significant progress in de-risking renewable energy projects, mainly through efforts led by the Geothermal Development Company (GDC), which has mapped out vital geothermal resources to attract private investment. Similar resource maps for wind and solar power have been developed, helping to reduce the exploration risks for investors.
“To avoid a situation where too many projects come online at once, we are spreading out the renewable energy interests up to around 2041 to 2043,” Mwaniki said. He added that while the government could not disclose specific figures on the number of companies expressing interest, the concern was apparent: generating more electricity than is consumed could drive up power costs.
Kenya carefully plans its renewable energy projects to balance supply and demand, focusing on accommodating projects that match the country’s future energy needs. “If we have surplus generation, electricity tariffs will rise,” Mwaniki warned. “So, we must ensure our energy mix is balanced and aligned with forecasting demand for the coming years.”
In addition to managing generation capacity, Kenya is also exploring energy storage solutions to prevent the wastage of cheap power, such as geothermal energy, by storing it during peak demand hours.
As of June 2024, Kenya’s renewable energy capacity reached 2,859.4 MW, accounting for 80.04% of the country’s total installed power capacity. This includes 2,427.1 MW of interconnected renewable energy and 427.7 MW of captive renewable energy.
Mwaniki further clarified that Kenya’s energy planning involves forecasting for the current year and the next few years. “We ensure that we have enough capacity for 2024, and we are also looking ahead to ensure sufficient supply in 2025 and 2026,” he said. “This is why we cannot accept projects beyond our current accommodation capacity.”