Business is booming.

Kenya to receive $11 billion for transition to clean energy – CIF

By Ojugbele Omotunde

Kenya has secured a significant boost in its transition to clean energy with the Climate Investment Funds (CIF) partnering to support its Renewable Energy Integration Program.

The CIF Trust Fund Committee has authorized concessional funding of $70 million to bolster Kenya’s integration and utilization of renewable energy sources.

This financial injection aims to propel Kenya towards achieving Net Zero emissions by 2050 and a substantial 32% reduction in greenhouse gas emissions by 2030, aligning with CIF’s Renewable Energy Integration (REI) investment program objectives.

By 2030, the ambitious program targets the attainment of 100% clean energy and a notable decrease in greenhouse gas emissions through the widespread integration of renewable energy sources.

To support these efforts, the World Bank Group and the African Development Bank, alongside other stakeholders, are expected to provide Kenya with a combined funding package of at least $243 million. The Kenyan government has expressed gratitude for this collaborative support.

The core focus of Kenya’s Renewable Energy Investment Plan (REI) is to enhance dispatch, flexibility, and grid stability, while simultaneously fostering private sector investment in cutting-edge storage technologies such as pumped hydropower and battery storage.

According to the plan, variable renewable energy is set to increase from 19% to 30% by 2030.

With concessional support from the Climate Investment Funds, Kenyan consumers will benefit from enhanced access to electricity, ensuring reliability and affordability.

This support has garnered endorsement from three multilateral development banks, including the Climate Investment Funds, which is enthusiastic about assisting Kenya in achieving universal electricity access while embracing low-carbon technologies.

Mary Porter Peschka, the Regional Director for Eastern Africa at the International Finance Corporation, underscores the energy PS program’s commitment to promoting gender inclusivity and cultivating a diverse pool of skilled manpower within the renewable energy sector.

She emphasizes the pivotal role of clean and affordable energy in driving Kenya’s inclusive green growth agenda, enabling increased access to innovative energy solutions.

Kenya joins nine other countries selected to participate in the REI program, with their investment plans endorsed by the CIF’s committee.

The overarching goal of the REI program is to surmount market, policy, and technological barriers hindering the integration of renewable energy sources into national grids, particularly in developing nations.

With over $11 billion pledged by 15 contributing nations, the CIF has mobilized substantial funding from over 70 countries, predominantly from the private sector.

This large-scale, low-cost financing not only enhances investor confidence but also establishes market track records and mitigates risks associated with climate financing, ultimately driving progress towards a sustainable future.

 

 

Quality journalism costs money. Today, we’re asking that you support us to do more. Support our work by sending in your donations.

The donation can be made directly into NatureNews Account below

Guaranty Trust Bank, Nigeria

0609085876

NatureNews Online

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Footer Image