(Nairobi) – Kenya has decided to postpone certain renewable energy projects until 2043 to prevent an overproduction of electricity that could drive up costs.
Benson Mwaniki, the director of renewable energy at the Ministry of Energy, explained that the country is currently receiving expressions of interest, particularly for solar power, that exceed the amount of energy the national grid can accommodate. In response, Kenya is carefully planning the deployment of these renewable projects to ensure that the supply matches demand.
Mwaniki said the country has made significant progress in reducing risks for investors, especially with the efforts of the Geothermal Development Company (GDC). This includes creating detailed maps of geothermal resources to attract private investment. Similar efforts are being made for wind and solar energy projects, which reduce the risks for potential investors by removing the uncertainty of exploration.
“We are planning these projects carefully to avoid a situation where too many come online at the same time,” Mwaniki said. “That’s why we have spread out the proposed projects until around 2041 to 2043.”
Despite not having specific figures on the number of companies interested in Kenya’s renewable energy projects, Mwaniki emphasized that too much power generation without corresponding demand could lead to higher electricity tariffs.
“We must balance the generation of electricity with the demand,” he said. “If we produce more than we need, the cost of electricity will go up.” He also pointed to the importance of storage solutions to ensure that excess renewable energy, particularly from geothermal, is stored and used during peak hours to avoid waste.
Kenya has made significant strides in clean energy. By June 2024, the country’s installed capacity for renewable energy sources reached 2,859.4 MW, accounting for 80.04% of the total energy capacity in the country. This includes 2,427.1 MW of interconnected renewable energy and 427.7 MW of captive renewable energy.
Mwaniki emphasized that Kenya must ensure its power mix is adequate for each year, including forecasting energy needs for the coming years. “We look at what we need for 2024 and beyond, to make sure that we have enough energy for every year,” he said. He also noted that the country is considering renewable projects that can be realistically integrated into the power grid based on future demand projections.