Kenya is no stranger to innovation in energy. With the geothermal-rich Rift Valley, world-class wind corridors in Marsabit and a solar belt that stretches across vast regions, the nation has made bold strides in renewable energy. The sector is now asking, will BESS be part of the solution?
Authored by Ruth Muthoni and Guy Dixon, this article explores the next steps for Kenya to act decisively on:
1. Defining Regulatory Frameworks including monetization and procurement rules
2. Encouraging private sector innovation with transparent public private partnerships
3. Promoting local assembly & skills development
4. Placing BESS at key grid nodes in strategic storage hubs
Read on and let us know what you think!
BY RUTH MUTHONI AND GUY DIXON
From possibility to policy: Charting Kenya’s BESS journey
Kenya is no stranger to innovation in energy. With geothermal-rich Rift Valley, world-class wind corridors in Marsabit and a solar belt that stretches across vast regions, the nation has made bold strides in green energy. As it stands, the share of electricity generation capacity in Kenya is 92% renewable. As impressive as Kenya’s renewable portfolio may be, there’s a growing need to bridge the gap between resource abundance and energy demand.
Kenya is also suffering from grid instability, struggling to balance daily demand variations and an ageing transmission network with increased generation from wind and solar resources, which are intermittent in nature. Kenya has ambitions to get to 100% green generation by 2030, and will BESS be part of the solution is a big question the sector is facing…
The existing substation for the 310MW Lake Turkana Wind Farm, responsible for regulating energy supply to the Loiyangalani – Suswa transmission line.
Kenya’s peak electricity demand hit 2.36GW in August 2025, with just 3GW in effective supply capacity (assuming the wind is blowing and the sun is shining!). With power outages on the rise and a freeze on new Power Purchase Agreements (PPAs) only just appearing to be lifted, the pressure to stabilize supply without reverting to expensive thermal generation is mounting.
Moreover, the surplus generation from geothermal (especially during off-peak hours) is often vented—literally released into the air—because the grid cannot absorb it. This not only wastes valuable renewable energy but also reduces the sustainability of geothermal wells.
The energy sector has been on a standstill since the 2021 PPA Taskforce was appointed by the government, however after much stakeholder deliberation ‘a lifting of the moratorium’ seems imminent. Meanwhile, development of power generation projects has fallen behind the country’s power planning cycle.
In addition, the priority has shifted to focus on developing baseload power in particular hydro and geothermal assets in order to rebalance the grid after years of developing wind and solar assets. Gas power is also under consideration. While baseload assets are desirable for grid stability and reduction in overall cost of power, they take years to develop and operationalize.
As such, there is a clear and present danger that the gap between demand and supply will continue to grow, leading to critical load shedding, as seen in other markets such as Zambia and South Africa. Any situation like this will constrain GDP growth and force C&I players to consider increased uptake of off-grid solutions, further weakening the underlying economic stability of the on-grid sector.
The proactive solution to mitigate a possible power crisis is to act quickly – and includes the acknowledgement of the role of Battery Energy Storage Systems (BESS) in augmenting the development of large-scale wind and solar assets. This is through the integration of BESS as either stand-alone units at key nodes in the grid or in a well-defined manner into new, low-cost assets – e.g. as part of quick-to-build solar and wind projects.
BESS is not just a backup plan—it’s a strategic enabler:
With the upcoming Eastern Africa Power Pool (EAPP) opening up regional energy trade and the 2024 Energy Regulations enabling market participation, Kenya has a further potential benefit of BESS adoption – providing ancillary services and trading capabilities on a wholesale market. A differentiator from neighboring countries that currently have significant excess supply from large-scale Hydros.
However, transitioning to BESS won’t be plug-and-play. There are critical hurdles to overcome:
South Africa has built upon the success of its market leading Kenhardt BESS project, with 13 projects since selected under the BES IPP programme’s Bid Window 1 and Bid Window 2. Alongside ESKOM’s own sites, this programme is encouraging private sector investment and driving competitive tariffs, at strategic grid locations.
Kenya must act decisively:
Kenya is already a champion of renewable generation. With the right mix of policy, innovation, and investment, it can become a continental leader in energy storage too. BESS can not only stabilise the grid but also accelerate investments into Kenya’s abundant renewable resources for domestic and industrial use and for export.
Let’s not just generate clean power—let’s make sure we keep it for when it is most needed.
Ruth Muthoni is an Associate and Guy Dixon a Vice President at Osprey Renewables.
We develop and invest in utility-scale renewable energy generation with an ambition to accelerate the emergence of Africa’s green industry.