When people take aerial photographs of eastern Africa, they can see white windmills stretching for hundreds of kilometers like dragons. When the wind blows, the spinning windmills allow millions of families in Kenya to have enough power to light the house, watch TV, and enjoy a refreshing drink from the fridge on a hot summer day.

Those windmills belong to the Lake Turkana Wind Power Station, the single biggest operating wind farm in Africa with 365 turbines which can deliver an average of 1500 GWh energy every year. The station supplied 11% of the country’s electricity in 2023. The wind station has played a crucial role in providing clean, reliable, and affordable energy to Kenya’s national grid and further stimulated economic activity in the region by creating jobs, improving infrastructure, and funding community development initiatives.

Lake Turkana Wind Power Station, Sub-Saharan Africa’s largest wind farm in Turkana, Kenya.

This case study, highlighted in a recent study, serves as an example of the benefits that effective climate finance can bring. The paper reviews the effectiveness of climate finance strategies for renewable energy projects in Africa.

Climate finance refers to “all financial flows addressing the causes and consequences of climate change,” according to the United Nations Environment Programme. Climate finance will play a pivotal role in African nations’ transition toward a sustainable future by providing the capital needed to overcome the high initial costs associated with renewable energy technologies and infrastructure.

Climate finance strategies such as grants, loans, and public-private partnerships have performed well  in supporting renewable energy projects. Notably, international financial mechanisms like the Green Climate Fund (GCF) and the Global Environment Facility (GEF) provide grants and low-cost loans for  large-scale investments. 

The Lake Turkana Wind Power Station is an example of another approach: a public-private partnership. This long-term contract between a private party and a government entity aims to provide a public asset or service. In this case, Lake Turkana Wind Power (LTWP) has an agreement with the Government of Kenya to sell all of its power to the Kenya Power and Lighting Company (KPLC).

Renewable energy investments are urgently needed in Africa. Researchers highlight the reliance of inhabitants in Africa on traditional biomass for cooking and heating, driven by the limited access to electricity and essential infrastructure. Energy shortages result in social and economic challenges such as stunted economic development, restricted educational opportunities, and inefficient healthcare delivery.

Moreover, expanding renewable energy in Africa will help close the energy gap between African nations and the rest of the world, thereby contributing to international climate goals such as the 2°C target set by the Paris Agreement. For instance, the Lake Turkana Wind Power project avoids over 600,000 tons of CO2 emissions annually and millions of Euros in fuel imports.

Community involvement is also a crucial aspect of green investment in Africa. Engaging local communities in project development and decision-making not only ensures long-term project viability but also brings social economic benefits, making these projects both environmentally sustainable and beneficial for the people they serve. 

Reliable electricity access can significantly enhance living standards, from better healthcare to enhanced education opportunities. For instance, the Lake Turkana Wind Power Station is the largest private employer in Marsabit County. As of 2023, 307 people were employed at the facility, 98% of whom are local Kenyans. In addition to providing jobs, the company has funded various community programs, including emergency food relief, the construction of a maternity hospital, and new roads. Through community Open Days, facility operators engage directly with hundreds of local residents to raise awareness about their operations and foster stronger community relationships.

However, there are still challenges for implementing renewable energy projects in Africa. Common barriers include outdated regulations, weak institutions, and limited market access due to underdeveloped infrastructure and distribution networks. In many African countries, regulatory frameworks are old or unclear, which makes it hard for investors to navigate those complex procedures and policies. These obstacles discourage large-scale private investments, especially when there aren’t enough funding sources or financing options available. Additionally, weak institutions make it difficult to manage big renewable energy projects effectively. 

At the international level, the high cost of renewable energy components remains a significant burden, as many must be imported from developed countries with high production costs. Additionally, developing countries often face ‘unequal exchange,’ where they sell raw materials at low prices but must import expensive finished goods, including renewable energy equipment. This imbalance raises costs and limits purchasing power, making it harder for African nations to access affordable technology for renewable energy projects.

Africa holds immense potential to transition to a renewable and inclusive energy future aligned with international climate goals—if local communities, policymakers, and investors collaborate effectively. Researchers recommend that to ensure sustained advancement, policymakers should focus on optimizing regulatory structures and enhancing institutional capacity, such as simplifying licensing for renewable energy projects, while investors should explore hybrid financing methods that mitigate risks. Promoting local and regional cooperation will be key to the long-term success and sustainability of renewable energy projects in Africa.