Davis Chirchir on Kenya’s energy outlook

Kenya's energy outlook is witnessing a significant shift towards renewable energy sources, with about 86% of electricity generated in the country now coming from green sources. The Energy and Petroleum Regulatory Authority's report highlights the success of increased investment in the sector, positioning Kenya as a leader in Africa's energy transition. CNBC Africa recently engaged in a discussion with Davis Chirchir, Kenya's Cabinet Secretary of Energy and Petroleum, delving into the country's energy landscape and the path towards achieving 100% electricity access by 2040. Key Theme: The key theme of the interview centered around Kenya's energy transition towards renewable sources and the challenges and opportunities that lie ahead in achieving sustainable energy access for all. Key Points: The interview touched upon several key points reflecting Kenya's energy journey and future prospects. 1. Cost of Energy: Chirchir pointed out that while generating energy is crucial, making it affordable is equally important. Kenya, like many African countries, faces the challenge of high energy costs. With the average rate in most developed countries reaching up to 5,000, Kenya stands at about 200. The affordability of energy is essential to ensure that the majority of the population can access and benefit from the energy transition. 2. Renewable Energy Mix: Kenya boasts a diverse energy mix, with geothermal leading the pack at 45% of the electricity generation. Other sources include hydro (30%), wind (9%), and solar, collectively contributing to about 92% of the mix. The country has made significant strides in developing its renewable energy potential, with geothermal being a standout performer among the green sources. 3. Power Trade and Regional Connectivity: Chirchir highlighted Kenya's efforts in regional power trade, emphasizing the importance of interconnectivity with neighboring countries like Ethiopia and Zambia. The Eastern electricity power interconnect between Kenya and Ethiopia has enabled power exchange, allowing Kenya to access up to 75 megawatts from Ethiopia and vice versa. This regional cooperation enhances energy security and provides a platform for optimizing renewable resources across borders. Quote: Chirchir underscored the need for addressing financing challenges in renewable energy projects, especially in making solar and wind projects more bankable. He noted the importance of storage solutions to overcome the intermittency of these sources, making them more reliable and cost-effective. With investor confidence high and a conducive market framework in place, Kenya is well-positioned to scale up its renewable energy capacity and achieve its target of 100% electricity access by 2040. The country's commitment to sustainable energy practices sets a precedent for other African nations, showcasing a blueprint for a greener and more energy-efficient future.