CIF Endorses Kenyan Plan to Develop Renewable Energy Resources
30 September 2011: The Climate Investment Funds (CIF) have approved funding for Kenya's investment plan to scale up and develop its renewable energy resources, which will enhance their energy security, increase electricty access, reduce supply costs and bring socioeconomic benefits to local communities.
It is expected that the US$50 million grant will aid in catalyzing private sector financing, decrease market risks and absorb many of the high start-up costs associated with renewable energy. The plan, which obtained funding through CIF's Scaling Up Renewable Energy Program in Low Income Countries (SREP), was developed to overcome the economic, financial and technical barriers that have hindered Kenya in exploiting its solar, geothermal and wind resources. Kenya has also made a number of institutional and policy reforms, which will also assist in catalyzing the market.
With the guidance of the African Development Bank (AfDB), Kenya is preparing to construct a geothermal plant that will provide 400 megawatts (MW) of a potential 1650MW by 2018. The project is the first to be solely developed by Kenya's newly established Geothermal Development Company, which will be primarily resonsible for developing Kenya's geothermal resources. The power produced will be fed directly into Kenya's national grid. The SREP funding is also expected to fund capacity building initiatives. [AfDB Press Release]