Kenya has tripled its long-term target for expanding its renewable energy capacity to meet surging demand and support its industrialization, but that might not result in more affordable power for consumers. This was reported by Qazaqyia.kz citing Associated Press.
The plan calls for renewable power generating capacity of 5,500 megawatts, up from about 1,500 MW now. That would include 2,000 MW of nuclear power alongside 700 MW of hydropower and new geothermal projects.
That will strengthen the country’s position as a global leader in renewable energy. Kenya already produces 93% of its electricity using renewable sources. But experts say that reforms for utility contracts, electricity grids, financing and pricing are needed to translate clean energy growth into lower cost power for consumers.
“We have recalibrated our long-term growth trajectory from 1,500MW to a 5,500MW renewable energy development pipeline,” said Peter Njenga, CEO of KenGen, the state-owned utility that produces about 60% of Kenya’s power.
Lawmakers have been pushing the government to reduce electricity rates. In July, the parliament directed Energy Minister Opiyo Wandayi to develop a policy for renegotiating electricity supply agreements with major power producers. Lawmakers said lower wholesale prices could create more leeway for Kenya Power to cut consumer rates without damaging its finances.