Kenya Energy Storage System

Two thirds of Kenya’s electricity is generated from renewable/clean energy sources. Of this, wind power accounts for 15% (435MW) while solar accounts for just under 2% of total installed capacity (51MW) with these numbers expected to continue to grow. The success in growth of these two energy sources has inadvertently resulted in excess energy being generated during off-peak hours and increased intermittent capacity in the national grid, thus presenting a good opportunity for introduction of battery storage to balance the demand and supply in the system.

The Ministry of Energy (MoE) recently released the Least Cost Power Development Plan 2021-2030 (LCPDP). The LCPDP’s demand forecast includes Battery Energy Storage Systems (BESS) to be used to support the integration of variable renewable energy technologies and system support. BESS features prominently in the generation capacity expansion plan which includes 50MW of BESS in the generation mix by 2022 with the number rising to 250MW by 2026. However, there is no current framework in place for the integration of BESS in the country’s generation mix, but MoE and Kenya Power (KP, the national off taker) have engaged development partners such as USAID/Power Africa to develop a roadmap. The LCPDP also mentions the fast-tracking of an ancillary services study to assess the role that grid energy storage systems (i.e., pumped storage hydro, battery storage and hybrid systems) would play in grid stabilization.

Currently, several companies are considering Kenya as a market for BESS technology and have engaged MoE and KP to further these discussions. KP believes that more than 480MW of BESS is required across different locations in the country, such as western Kenya, where there is inadequate transmission capacity at peak times as well as at substations along Kenya’s coast. BESS will help address issues within the national grid related to frequency regulation, voltage instability, load shifting and network reliability. As associated costs decline, it has the potential to play a critical role in replacing fossil thermal power in the future.

We encourage U.S. firms interested in engaging these projects to contact the U.S. Commercial Service for guidance. The procurement process may be via open competitive bidding or competed  in public private partnerships.  For more information, please contact Mary.Masyuko@trade.gov.