Kenya triples its power target, aiming to expand use of nuclear and geothermal energy

NAIROBI, Kenya (AP) — Kenya has increased its long-term target for renewable energy capacity expansion from approximately 1,500 megawatts to 5,500 megawatts, incorporating 2,000 megawatts of nuclear power, 700 megawatts of hydropower, and new geothermal projects. Peter Njenga, CEO of KenGen, the state-owned utility generating around 60% of Kenya's power, stated that this strengthens Kenya's position as a global leader in renewable energy.

However, experts caution that this may not result in lower power costs for consumers due to the need for reforms in utility contracts, electricity grids, financing, and pricing. Lawmakers have urged the government to reduce electricity rates, and Energy Minister Opiyo Wandayi was directed to develop a policy for renegotiating electricity supply agreements with major power producers in July.

Energy experts argue that focusing on cheaper electricity generation is less critical than making electricity more affordable. Kenya's costs are influenced by financing, transmission and distribution losses, taxes, and foreign exchange movements, which ultimately burden consumers. While Kenya's green energy sources add to costs due to expensive infrastructure, inefficiencies in the distribution network, such as 20% losses, also contribute to high electricity prices.