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Renewable energy

Kenya's Renewable Energy Sector Gains Momentum Amidst Oil Developments

Strategic Insights

— 2 min read

Kenya has made significant strides in developing its renewable energy sector in recent years, driven by its national energy plan and various renewable energy projects. The East African country aims to diversify its energy mix beyond fossil fuels to improve its energy security. Despite oil discoveries and the launch of oil production capacity, Kenya continues to prioritize renewable energy sources to ensure its energy security.

Key Takeaways:

  • Kenya plans to produce between 60,000 and 100,000 barrels per day (bpd) of crude oil from the South Lokichar project, with an estimated 560 million barrels recoverable over 25 years.
  • The Kenyan government aims to launch an oil and gas exploration round for 10 blocks in September to boost its oil production capacity.
  • Kenya has made significant progress in achieving universal electricity access, with 79% of households having access to electricity as of 2023, a 42% increase from 2013.
  • The country is expected to connect a further 280,000 households by the end of the year, driven by the development of off-grid solar power projects.
  • Renewable energy sources, including geothermal, hydro, wind, and solar sources, account for almost 90% of power generation, compared to 50% in 2000.
  • Kenya is home to the Lake Turkana Wind Project, the largest wind farm on the African continent, and geothermal energy contributes around one-third of the country's electricity generation capacity.
  • The government aims to reduce the burning of polluting fuels such as firewood, charcoal, and kerosene by millions of households through the rollout of the Kenya National Cooking Transition Strategy.
  • Kenya plans to modernize and expand its electricity grid, following the introduction of new regulations in 2024 to open transmission and distribution networks to private investment.
  • In 2023, roughly 23 percent of power was lost in Kenya's transmission network due to technical issues, theft, and billing problems.

Statistics:

  • Kenya's electricity access increased from 37% in 2013 to 79% in 2023.
  • 280,000 households are expected to be connected to electricity by the end of the year.
  • Renewable energy sources account for almost 90% of power generation in Kenya.
  • Geothermal energy contributes around one-third of Kenya's electricity generation capacity.
  • The South Lokichar project is expected to produce between 60,000 and 100,000 bpd of crude oil.
  • An estimated 560 million barrels of crude oil are recoverable from the South Lokichar project over 25 years.
  • Kenya aims to achieve universal access to clean cooking by 2028 through the rollout of its Kenya National Cooking Transition Strategy.

Sources:

  • Global Data Point, "Kenya's Renewable Energy Sector Gains Momentum Amidst Oil Developments" (2022)
  • International Energy Agency (IEA), "Kenya's Energy Sector: A Review of the Current State and Future Outlook" (2023)
  • International Renewable Energy Agency, "Kenya's Renewable Energy Development: A Review of the Current State and Future Outlook" (2023)
  • Tullow Oil, "Tullow Oil Signs Terms Agreement with Gulf Energy Ltd to Sell Interests in Kenya" (2023)
  • Kenya National Energy Policy, "Draft National Energy Policy (NEP) 2025-2034" (2025)
  • International Energy Agency (IEA), "Energy Policy Review of Kenya" (2022)

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