By FRED OLUOCH
Nairobi

Kenya's development partners are out to help the country enhance her capacity to produce green energy, even as they point out that continued reliance on hydro-electric power is not sustainable.
Recently, the French Development Agency (AFD), together with the Ministry of Energy and United Nations Environment Programme (UNEP), convened an energy conference to explore ways in which Kenya can be self-sufficient in green energy. .
The conference came a head of the Copenhagen Environment Conference which will be held in December, in which Kenya will be an active participant. Dubbed, Powering Kenya into a green energy future, the conference provided a forum for key stakeholders in the energy sector to deliberate on the challenges facing the sector and identify ways of fast-tracking the development of green energy in Kenya.
The conference was held on November 23 and 24, attracted over 200 delegates from Kenyan government officials, industry, donor and financial institutions.

It pushed for identification of long-term solutions for Kenya’s power needs. Kenya depends mainly on hydro-electric power, but there is need to explore green electricity power generation options.

The energy sector in Kenya has been hit by a double crisis: skyrocketing prices of oil followed by a very severe drought, against a background of historic over-reliance on hydro. Kenya has as yet, no proven large scale fossil fuel resources but is one of the countries with the greatest potential in the world for green energy.

In 2007/08, Kenya produced 17% of its electricity from geothermal sources. As a comparison, Iceland has the highest proportion of geothermal energy production in the world and still has only 26%. As early as 2013, with the commissioning of Olkaria I and Olkaria IV, Kenya should be able to produce more than 30% of its electricity from geothermal sources.

This year, Kenya has experienced its worst drought in about 75 years, which has had an adverse effect on the generation of hydro-electric power, resulting in power rationing and the introduction of costly thermal-diesel generated power to supply the country’s needs. The delegates had the mandate to agree on the best options for the short, medium and long-term for the country that will result in a competitive, affordable and the most green power generation plan for Kenya.

Kenya’s has massive physical potential for green electricity (4000-7000MW geothermal capacity and viable sites for substantial wind capacity. On the other hand, the share of fossil fuel energy as a proportion of total energy production is increasing.

But the dilemma for Kenya is that despite its positive potential, green energy could be too slow to develop, rendering it uncompetitive and therefore actually bolstering dependence on international energy markets


Whereas Kenya has made some progress on the road to the supply of electricity, the connection rate in the country still remains too low. Approximately 20% of households in Kenya and about 10% of households in rural areas have electricity.

Over 200,000 new connections in 2008/2009, due to the efforts of many of the stakeholders present here today; but this does not reflect the country’s economic strength, and potential.

Due to the widening gap between demand and supply, participants agreed that private sector investment is needed, which reinforces the need for a transparent and predictable framework; the private sector and the government partners found in this forum an opportunity for high-level debate.

It was resolved to look into setting up a one-stop-shop office for all licensing processes of projects. The Ministry of Energy agreed to review the feed-in tariffs policy within the short term. Private sector representatives and government officials agreed to hold regular meetings to tackle the issues.


Despite being cheaper in the long-run, renewable energies require huge investment costs. Investment needs are estimated at more than USD 5 billion. The Government has indicated that it will facilitate increased budgetary support to green energy as well as use various incentives such as tax holidays and a Green Energy Facility. Development partners have agreed to improve their contributions, notably through better harmonization.

The international negotiations on climate change should bring increased and innovative financing mechanisms that Kenya should attract for its green energy agenda.

According the Jean-Michel Debrat, the French Development Agency Deputy Director General, the AFD, as the French Bilateral donor organisation, has three key missions of fighting against poverty, promoting economic growth and protecting global public goods such as climate and biodiversity. The cost effective provision of green electricity contributes directly to all the three key missions.

Mr Debrat explained that in the fight against poverty at a micro level, electricity enables households to save money by saving kerosene and batteries; it enables women to save time by avoiding cumbersome domestic works (fuel wood, water); at a national level, electricity enables education and the provision of accessible and reliable health services.

In the promotion of economic growth - electricity is a prerequisite for sustainable and profitable economic development; indeed in Kenya green electricity could be cheaper than the alternatives. Promoting green electricity thus promotes vital competitiveness and sustainable development in African countries.

In the protection of global public goods - green electricity reduces greenhouse gas emissions and reduces correspondingly our dangerous reliance on fossil fuels. In 2008, AFD committed over €4.5 billion to more than 60 developing countries in Africa, Asia, the Mediterranean Basin, the Middle East, South America, and the French Overseas Territories.


The Kenyan Minster for Environment and Mineral Resources, John Michuki, noted that
Kenya is working hard the phase out energy sources that are not environmentally friendly and which adversely affect the environment and its biodiversity, and continue to pose serious threats to life and existence of any form.


“Even though access to reliable and clean energy appears farfetched; yet if achieved would positively transform our lives and reduce environmental threats facing us today.
This would fast track achievement of components of our Vision 2030 and enable Kenya
to realise the dream of a clean, secure and sustainable environment and mineral resources,” said Mr Michuki