Kenya steps up quest for clean energy to cut reliance on expensive thermal power

Unknown to many, the United Nations declared 2015 the International Year of Light to underscore the importance of light in tackling development issues.

Mid-way through the year, many countries are trying to move away from dependence on traditional fossil fuels and going all out to seek alternatives in the form of environment friendly and sustainable sources of energy.

Among them is Kenya, whose quest for green energy is in top gear despite discoveries of substantial deposits of oil in different parts of the country.

Hydropower is at the forefront in the green energy sector, followed by geothermal sources, and the latest developments indicate that wind will soon be a major factor in the renewable power production landscape. Discovery of oil in Kenya means this source of energy would continue to be important.

Two events over the past week are sufficient to illustrate the country’s resolve to develop alternative sources of energy, which are viewed as crucial for achieving economic development goals.

The first major event was the Kenya Clean Energy Conference and Exhibition at the Safari Park Hotel in Nairobi last Wednesday and Thursday. Organised by the Kenya Association of Manufacturers, and sponsored by the Ministry of Energy and Petroleum and the UK Department for International Development, among others.

The event, whose theme was ‘Catalysing Clean Energy Investments in Kenya’, aimed to rejuvenate the clean energy push.

The second major event was the groundbreaking of the massive Lake Turkana Wind Power project in Marsabit County by President Uhuru Kenyatta. The wind power project is among key government green energy plans to add 5,000 megawatts to the national grid by 2017.

The ceremony at Loyangalani on the shores of Lake Turkana was the latest indication that the government intends to initiate projects that would make optimal use of natural resources for development.

President Kenyatta said the Sh72 billion Lake Turkana Wind Power project, which is expected to inject 310 megawatts or 20 per cent of Kenya’s electricity production into the national grid, would attract investors and broaden the country’s energy base as well as reduce reliance on hydro and geothermal power.

“We want to get rid of geothermal power production,” he said. “The project in Loyangalani will be a game changer in Africa’s energy sector by providing power using clean, stable and green resources.”

He added that apart from opening up northern Kenya, which is slowly gaining international recognition because of the project and the discovery of oil, the wind initiative would drastically reduce the cost of power.

Massive by any standards, the Lake Turkana Wind Power project is significant in quest for green energy.

The Sh70 billion (€600 million) project is said to be the largest single-private investment in Kenya’s history. According to those behind its development, the initiative would save Kenya from spending about Sh13.7 billion (€120 million) per year on fuel imports.

The investors further said that the project’s tax contribution to Kenya would be about Sh2.7 billion (€22.7 million) per year and Sh58.6 billion (€450 million) over the life of the investment.

However, the project’s construction and long-term maintenance are expected to face unique challenges, given that it is located next to Lake Turkana, one of the most remote areas of Kenya.

Another benefit is that it would reduce reliance on unreliable hydropower and expensive, fossil fuel-based power generation.

Further, the project would, according to the financiers, insulate Kenya’s power tariff by providing a low and consistent power price.

The project funders also point out that the wind power production plan would be the least costly option alongside geothermal power. They say estimated tariffs would be 60 per cent cheaper than that of thermal power plants, and that should be great news for consumers, who are expected to benefit from the projected 50 per cent drop in the electricity costs.

The Lake Turkana project, which has been in the pipeline for several years, was in February awarded the 2014 Europe and Africa IJGlobal Awards Renewables Deal of the Year that fetes the best in class deals in energy and infrastructure.

Project Finance International, a major player in the global power regulation industry, named the project the African Renewables Deal of the Year 2014 earlier in the same month.

The renewable energy sector in Kenya is among the most active in Africa. According to available data, investment in technologies such as wind, geothermal, small-scale hydro and biofuels grew from virtually zero in 2009 to $1.3 billion in 2010.

Kenya has been very active in the renewable energy sector, but the massive leaps currently being made are signs of new determination to make even greater headway in the sector.

Regarding geothermal power, Kenya is the first African country to seriously tap it, and is currently the continent’s leading producer of geo-energy, with only one other African country, Ethiopia, generating geothermal power.

Geothermal power is harnessed from steam released by hot rocks in the Rift valley. Its production in Kenya stands at 200 megawatts and accounts for 20 per cent of the total capacity of electricity in the national grid. Connectivity to the national grid stands at 28 per cent.

However, according to the World Bank data, only about 16 per cent of Kenyans have access to electricity, and demand outstrips supply — explaining why power rationing is common.

To bridge the gap, many consumers have over the last decade increasingly turned to solar for their energy needs, in the process making Kenya the world leader in terms of the number of solar power systems installed per capita.

High cost of connectivity to the national power grid has also pushed many Kenyans to embrace solar power due to plenty of sunshine readily available for tapping. Companies involved in the provision of solar power technology have quickly recognised that abundance. Such a firm is the Greenlight Planet, whose products — particularly solar lights — have become household names in Kenya and elsewhere over the years.

According to its local directors, with the right investment, planning and government support the African continent could have access to solar lighting by the end of the decade.

The Greenlight Planet says their teams on the ground in Kenya and elsewhere in Africa are reporting a sharp rise in demand for solar lights and other products. For instance, they report, solar use in Kericho, has grown from 20 per cent in 2013 to 60 per cent this year.

The firm adds that the solar products market is driven by peer-to-peer networks, community education programmes and word of mouth. In Kenya specifically, they report, 95 per cent of their customers recommend solar lights, on average, to another 25 people each.

Soon after the Marsabit project launch on Thursday, the Kenya Electricity Generating Company (KenGen) unveiled yet another major energy initiative in Meru County where the company plans to build a 400-megawatt wind farm next year. The initial phase of the $270 million (Sh26.5 billion) project is set for completion before end of 2017 and is expected to generate 100 megawatts of electricity.

“We see a lot of potential in wind power,” said managing director Albert Mugo in a statement.

“It is likely to become a big thing in Kenya, and we are part of a group of businesses taking leadership in wind power development in the country.”

The power producer, which has a 25.5-megawatt wind farm in Ngong’, is diversifying to cheaper and renewable sources of power production using wind and steam in a bid to reduce the expensive diesel-generated energy.

KenGen intends to spend up to $1.3 billion (Sh127 billion) mainly in concessional funding over the next two to four years on renewable energy projects.

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