Kenyan Renewables Will Receive Approximately $300 Million in Funding From CIF
Posted on : Thursday, 1st February 2024
Multilateral lender Climate Investment Funds (CIF) on 30 January, Kenya is aiming to use 100% clean energy by 2030, and CIF is supporting a strategy that could see over $300 million committed to help with this integration. According to the statement, at least an additional $243 million is anticipated to be raised from the public and commercial sectors, including through the World Bank Group and the African Development Bank, following a $46.4 million initial disbursement on benevolent conditions by CIF.
An initial allocation by CIF of $46.4 million based on liberal conditions is supposed to attract essentially an extra $243 million from public and private sectors, including through the African Development Bank and the World Bank Group, it said. The financing from CIF is in the form of a loan, with $5 million in the form of a grant, a representative said. Kenya initially mentioned $70 million in an approved supported by CIF's Trust Fund Committee.
While the share of renewables in Kenya's power yield is as of now 90% - among the highest rates on the world .The requirement for a more stable system is particularly intense given Kenya's plan to increase the utilization of renewable electricity in transport and cooking, and increment the utilization of wind and sun oriented energy to 30% from 19% by 2030.
To help, the growth plan will see the money used to further develop dispatch, grid stability, and flexibility, and help assist with supporting future interest away innovations including siphoned hydropower. "CIF's concessional subsidizing will be instrumental in getting capacity to Kenyan consumers where and when they need it," said Luis Tineo, CIF's interim chief executive.
Kenya is one of 10 nations to have been selected under the Renewable Energy Integration program, one element of a global push to give more climate finance funding to developing countries as part of efforts to cap global warming. "The plan will help Kenya in her aspiration to accomplish 100% clean energy in the power system by 2030 and put it well on the direction to accomplishing Net Zero by 2050," said Alex Wachira, Principal Secretary at Kenya's energy department.
