Equator Energy commissions East Africa’s largest private solar plant

From the newsletter

Equator Energy, a leading solar provider in Africa’s Commercial & Industrial sector, has commissioned a 10 MW solar power plant at Mombasa Cement Ltd’s Vipingo facility. The project, one of East Africa’s largest privately developed industrial solar installations, comes as Kenya’s grid faces record-high demand and growing concerns over stability.

• Across Africa, large energy consumers are under pressure from rising grid tariffs and unreliable supply, forcing many to rely on backup generators. This has pushed operating costs higher and slashed their revenues.

• However, growing efficiency and falling costs of renewable technologies are offering a cheaper alternative. Solar and battery storage are already being deployed in energy-intensive sectors such as mining to provide reliable baseload power.

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• The project was implemented under a long-term Power Purchase Agreement (PPA) and marks a major milestone in Kenya’s industrial decarbonization journey. So far, the captive power sector for commercial and industrial customers has installed at least 575 MW, with solar leading adoption and the private sector driving growth.

• “This commissioning sets a new benchmark for industrial solar adoption in East Africa and highlights the private sector’s role in advancing Kenya’s clean energy transition,” said George Aluru, CEO of the Electricity Sector Association of Kenya (ESAK). The association projects installed captive power capacity in the country to reach 1 GW by 2030, a trend that could see Kenya’s utility lose some of its most reliable and profitable customers.

• Equator Energy, which operates in Kenya, Uganda, and Zimbabwe, currently has 53 MW installed and a pipeline of 100 MW. Backed by IBL Energy (the renewable energy arm of Mauritius-based IBL Group), STOA (a French infrastructure impact fund), and the Inspired Evolution III fund, the company is targeting 300 MW of operational and pipeline capacity by 2030.

• “Our ambition has always been to power Africa’s growth responsibly. Delivering one of East Africa’s largest captive solar plants marks an important step in driving the region’s industrial sustainability and economic growth,” said James Shoetan, CEO of Equator Energy.

• Kenya continues to face electricity supply challenges, with recent data from Kenya Power showing peak demand rose to a record 2,392 MW in August, up from 2,149 MW, driven by new household connections. To maintain grid stability, the utility has had to rely on power imports from Ethiopia. The situation could have been worse were it not for C&I consumers shifting part of their demand to self-generation, which has eased pressure on the grid by an estimated 15%.

• Globally, many countries are moving to restrict or even tax high-carbon products. This is putting pressure on export-oriented industries, especially those in heavy, energy-intensive sectors such as mining and steel manufacturing. As a result, many are turning to large-scale renewable solutions.

• For example, the Kamoa-Kakula copper mine in the DRC is in the process of securing baseload power from solar and battery storage. Given the high energy demand of such players, they can recover the upfront investment quickly and benefit from more stable, lower-cost electricity.

Our take

• With costs falling and technology improving, captive power projects are set to expand in scale. The sector is already seeing growth in large installations that meet baseload demand, driven by PPAs and rising private-sector investment.

• As more countries tax or restrict carbon-intensive exports, African industries like cement, steel, and mining will face direct pressure to decarbonise. Captive solar and battery projects will become not just cost-saving measures but also essential for competitiveness in global markets.

• To unlock this potential, countries need stronger policies that streamline private-sector investment in the C&I space. Such measures would accelerate the shift to renewable energy while easing pressure on national grids already strained by rising demand.