KenGen Battery Storage Gets US$81M Funding

About US$81 million is earmarked for KenGen’s battery-storage project. The funding is part of the World Bank’s GREEN programme for Kenyan power-sector projects. It combines about US$36 million from the World Bank’s International Development Association with US$45 million from the Green Climate Fund. The money is intended to strengthen Kenya’s electricity network.

KenGen would build a battery system that stores electricity when supply exceeds demand. It could then release that electricity when demand rises, especially during evening peaks. The batteries would mostly store surplus power from geothermal plants, which operate steadily day and night. This would make more of that generation useful when customers need it.

KenGen is Kenya’s largest electricity producer and the project’s implementing agency. It must complete feasibility studies before deciding the design, size and use of each site. Final locations, construction timing and the supplier have not been announced, so the funding is earmarked rather than a completed build.

The proposed battery project is backed by about US$81 million. That total equals about US$36 million from the World Bank’s International Development Association and US$45 million from the Green Climate Fund. In the article’s local-money conversion, the financing is about 10.5 billion Kenyan shillings.

The World Bank documents describe a battery system reported at about 100 megawatt-hours of storage. Megawatt-hours measure how much energy the batteries can hold. The system would charge when electricity is plentiful, especially from geothermal generation, and discharge when demand peaks. Batteries can also respond within seconds to sudden changes in supply or demand.

The 100-megawatt-hour figure is not yet final. KenGen must first complete feasibility studies covering each site’s size, design and use. Four locations are candidates, but no final site, construction start date, number of batteries or supplier has been announced. The project therefore has a clear funding scale, but its final form remains open.

A battery energy-storage system stores electricity when there is more power available than the grid needs. It releases that electricity later, when demand is higher or supply suddenly falls. Its storage capacity is measured in megawatt-hours, which describes how much energy the system can hold. The article presents batteries as a tool for making Kenya’s grid steadier.

The basic cycle is charging and discharging. Surplus electricity, mostly from geothermal plants in this project, charges the batteries. During an evening peak, the batteries discharge and send electricity back to the grid. They can also respond within seconds when supply or demand changes unexpectedly, helping operators manage the network.

The proposed system is reported at about 100 megawatt-hours, although studies will confirm the final figure. KenGen has already unveiled a smaller 1.16-megawatt-hour unit at its Nairobi headquarters. The larger project would extend storage from a small company facility to a national-grid application.

Kenya would pair batteries with geothermal power because geothermal plants run steadily day and night. Their output may exceed what the grid needs at some hours. Batteries can capture that surplus instead of letting it go unused, then return the electricity when demand rises. This helps connect steady renewable generation with changing customer demand.

Olkaria is especially important because KenGen produces most of its geothermal power there. The batteries could charge from surplus generation and discharge during the evening peak. They could also respond within seconds to sudden changes in supply or demand. That faster response can make the whole electricity network easier to operate.

The World Bank documents list four candidate sites: Embakasi in Nairobi, Kipevu on the coast, Muhoroni in western Kenya and the Olkaria geothermal complex. No final site has been chosen. KenGen’s feasibility studies must determine each site’s size, design and use before construction plans become definite.

The batteries are intended to make Kenya’s electricity grid steadier. They would store surplus power and release it when demand peaks, reducing the gap between when electricity is produced and when it is needed. Their ability to respond within seconds could also help when supply or demand changes suddenly. That gives grid operators another tool for managing the network.

For example, geothermal plants can continue producing power overnight or during other lower-demand periods. The batteries could store some of that surplus and discharge it during the evening peak. The article links this smoother supply to a network that is easier to run, while also supporting Kenya’s shift toward renewable power.

For electricity users, a steadier grid is meant to mean fewer outages for hotels, offices and factories. The project could also create work for equipment makers and engineering firms once KenGen begins purchasing. These outcomes depend on feasibility studies, final sites, construction and successful operation, none of which has a published start date.

KenGen’s proposed project would be a major jump from its existing battery system. The planned system is reported at about 100 megawatt-hours, while the unit at KenGen’s Nairobi head office stores 1.16 megawatt-hours. On the stated figures, the proposed project would have about 86 times as much storage capacity as that first unit.

The comparison shows the difference between a small demonstration and grid-scale storage. KenGen unveiled the 1.16-megawatt-hour unit in July 2025. It supports a modular data centre at the company’s Nairobi headquarters. The proposed system would instead serve a much broader electricity-network role, storing surplus power and releasing it during peaks.

KenGen’s strategy to 2034 sets a target of 500 megawatt-hours of energy storage. At about 100 megawatt-hours, the World Bank-backed project would represent one-fifth of that target. The figure remains provisional, because feasibility studies will determine the final size and design.

An electricity grid must balance power supply and demand continuously. At every moment, the electricity being produced needs to match the electricity customers are using. Demand changes through the day, while generation can also vary or produce more power than the grid immediately needs. If the balance shifts, the network becomes harder to operate and may become less stable.

The article’s battery example shows one way to manage that balance. Batteries charge when electricity is surplus, including when geothermal plants produce more than current demand. They discharge during a peak, such as the evening, when customers need more power. They can also respond within seconds when supply or demand changes suddenly.

This does not mean batteries generate electricity themselves. They shift electricity from one time to another. Kenya’s proposed system would therefore help align steady geothermal production with changing use. Its final contribution depends on feasibility studies, which will determine the system’s size, design and operating use.