Kenya High Court: Renewable Energy Sector Faces Policy Bottlenecks

• Kenya's ambition to achieve a 100 percent renewable electricity mix is facing policy bottlenecks and limited access to finance.
• A dedicated regulatory framework covering battery storage procurement, licensing, grid connection, operation, and commercial remuneration is lacking in Kenya.
• Industry players are pushing for clear public-private partnership rules, internationally recognized safety standards, and a market for grid-balancing services to attract greater private investment.
• The development of a robust battery energy storage framework will be critical for supporting the integration of more renewable energy sources into the grid.

However, reaching the remaining 10 percent will require coordinated policy and investment reforms.

Kenya's ambition to achieve a 100 percent renewable electricity mix is facing significant challenges, with industry players warning that policy bottlenecks and limited access to finance are slowing the country's progress towards a fully clean power grid. The concerns were raised during the launch of GoodWe's EO G2 hybrid solar inverter in Nairobi, where stakeholders emphasized the need for a robust battery energy storage framework to support the integration of more renewable energy sources into the grid. Kenya has already made significant strides in renewable energy generation, with about 90 percent of its electricity coming from geothermal, hydropower, wind, and solar power. However, reaching the remaining 10 percent will require coordinated policy and investment reforms.

Industry stakeholders have identified the absence of a dedicated regulatory framework covering battery storage procurement, licensing, grid connection, operation, and commercial remuneration as a major obstacle to the development of the sector. This lack of clarity is hindering investment in battery energy storage systems (BESS), which are critical for stabilizing electricity supply, integrating more solar and wind power into the grid, and supporting off-grid and backup power solutions. The World Bank-backed GREEN programme is already supporting studies on battery energy storage and regulatory frameworks, but industry players say faster policy implementation will be crucial if Kenya is to deliver on its target of becoming a fully renewable electricity economy by 2030.

The development of a dedicated regulatory framework for battery energy storage will have far-reaching implications for the Kenyan renewable energy sector. Lawyers advising clients on renewable energy projects in Kenya should watch for the emergence of clear public-private partnership rules, internationally recognized safety standards, and a market for grid-balancing services to attract greater private investment. With the right policy framework in place, Kenya can unlock significant investment potential in the renewable energy sector, driving economic growth, reducing greenhouse gas emissions, and improving access to clean and reliable electricity for all citizens.

Lawyers advising clients on renewable energy projects in Kenya should watch for the development of a dedicated regulatory framework covering battery storage procurement, licensing, grid connection, operation, and commercial remuneration, as this will impact investment and project viability.

Source: Original reporting via Policy gaps, financing hurdles slow Kenya’s push to 100pc renewable power