climate inv

Climate Investment Funds Endorses Kenya’s $70 million Plan for 100 percent Clean Energy

The Trust Fund Committee of the Climate Investm ent Funds (CIF)has endorsed a $70 million plan, with an initial allocation of $46.39 million, to advance the integration and utilisation of renewable energy in the Kenyan grid, enabling the country’s transition to 100 percent clean energy by 2030. This approval, as part of CIF’s Renewable Energy Integration (REI) investment program, will support Kenya’s ambition to reduce greenhouse gas emissions by 32 percent by 2030 and achieve Net Zero by 2050.

The initiative will see Kenya’s CIF REI plan 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.

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.

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. REI can support a mix of supply/demand side flexibility measures— enabling technologies, enabling infrastructure, market design and system operations improvement, and electrification and demand management; while advancing social inclusion and leveraging private sector financing.

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.

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