A rich history of hydropower combined with betting on geothermal energy has led to Kenya’s energy mix being dominated by renewables, but challenges remain to meet growing demand and keep fighting climate change, says Stephen Mallowah.
“I’d like to say our energy mix was all very well planned, but serendipity has a lot to do with it, where Kenya made a bet on geothermal, and that sort of paid off,” commented Mallowah, Head of Climate Change & Sustainability at TripleOKLaw Advocates. “That’s why we’re one of the leading geothermal producers in the world – because we decided to exploit it. It was there, and the government put money into it, then the green movement sort of caught up with us.”
Other key African economies such as Nigeria and South Africa are still largely powered by fossil fuels, as is the continent overall. However, Kenya and its East African neighbours are in an advantageous position with hydropower and more untapped geothermal resources in the Rift Valley, alongside plentiful other renewable sources such as solar, noted Mallowah.
According to the OECD, East Africa’s electricity generation capacity from renewable sources reached 11.5 GW in 2021, more than quadrupling since 2000 (2.7 GW). In 2021, renewable energy accounted for 65% of East Africa’s total electricity capacity.
The future could be even brighter, with other East African nations including Uganda, Rwanda and Tanzania having announced plans for geothermal exploration. A Rystad Energy report in November 2023 noted Africa’s current geothermal capacity would more than double by 2030, based solely on announced geothermal projects, and could triple with yet-to-be-announced projects to help meet government targets. The report writers expect African geothermal capacity to grow to 13 GW by 2050, more than double Europe’s installed capacity.
“Uganda adopted a new energy policy in 2023 whose objective is the sustainable development and utilisation of energy resources,” explained Aisha Naiga, managing partner of AMBAK Associates in Kampala, the Ugandan partner firm of TripleOKLaw Advocates.
Recent amendments to the Electricity Act and electricity supply regulations have modernised Uganda’s previous single-buyer model, allowing licensees and specified consumers to directly buy electricity in bulk, added Naiga. “There has been increased focus on protection of the environment in utilisation of energy resources and the energy policy advocates for the utilisation of renewable and clean energy sources,” she said.
Kenya has been generating geothermal power since the 1980s and was the first country in Africa to do so, but its neighbours across the Great Rift Valley are looking to follow suit, noted Mallowah.
While geothermal projects can initially be expensive to build, once onstream their production costs are low, and they produce cheap, clean energy from a plentiful resource, Mallowah explained, noting “it’s almost impossible now” to finance non-green projects. TripleOKLaw also worked on a carbon credits deal for one of the biggest geothermal producers, an additional revenue stream that, when added to the mix, makes the cost of power even cheaper.
TripleOKLaw was the first Kenyan firm to establish a dedicated climate change team, advised on the first large-scale carbon trading transaction in East Africa, and now shares its knowledge with its “best friends” firms across the wider region.
Looking ahead, Mallowah and Naiga would like to see greater regional and continental cooperation. While Kenya has bilateral electricity arrangements with Ethiopia, Tanzania, and Uganda, investing in transmission and creating a regional power grid could provide many benefits as some massive renewable projects are built and come online, such as the world’s largest hydropower project on the Congo River, and geothermal throughout the Rift Valley.
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