Kenya’s Two Rivers Mall to double its installed solar capacity

From the newsletter

Real estate developer Centum Re and the services-oriented Two Rivers International Finance and Innovation Centre (TRIFIC) have partnered with energy firm Distributed Power Africa-Kenya (DPA-K) to more than double solar power generation at the Two Rivers Complex. This increases capacity from 1.2 MW to 3.2 MW.

• Once completed, it will be the largest rooftop solar power installation for residential and commercial use in East Africa. Two Rivers Mall recently welcomed China Square, a retailer of personal and household items, which pushed its occupancy rate to 95%.

• DPA-Kenya has deployed over 200 clean energy projects across Africa for both commercial and industrial customers. They finance and build the solar plants.

• Our take: Real estate developments could be the next big driver of solar demand… Read more (2 min)

More details

• Centum Re is a leading developer of mixed-use urban nodes with a solid $800 million investment portfolio for the Centum Investment Company PLC (parent company) as of March 2024. It achieved $44 million in sales for Centum Real Estate in the aforementioned financial year.

• During the signing ceremony, Centum's Managing Director, Kenneth Mbae, pointed out that they accumulate  $2.8 million in annual power costs and would need also protection from the grid’s 9% yearly tariff increases.

• TRIFIC Special Economic Zone CEO Brenda Mbathi, DPA Kenya Limited General Manager Anthony Mburu, and Centum Re Managing Director Kenneth Mbae (pictured above, from left to right).

• Africa possesses approximately 60% of the world's best solar resources, with its market projected to require around $190 billion in investments by 2030.

• The demand for solar energy has been primarily led by the industrial sector, though the commercial and residential sectors are also gaining momentum. High-end residential estates, such as Tatu City and Migaa in Kenya, are incorporating solar to meet the growing demand for sustainable living. In South Africa, luxury estates like Steyn City, Val de Vie, and Zimbali Coastal Resort feature solar-powered homes. Similar trends are emerging in Nigeria, with Eko Atlantic City planned as a renewable energy-powered development and luxury apartments in Lagos and Abuja incorporating solar. 

• This project by Centum Re further reflects growing investor interest in Africa’s renewable energy infrastructure, particularly hybrid commercial and residential projects.

• The Two Rivers complex, a notable mixed-use development in Nairobi with retail, office, and residential spaces, will enhance its solar capacity to meet rising energy demands and promote sustainable urban growth.

• By combining commercial and residential needs within a single development, the utilisation of generated solar energy is maximised. Large-scale installations become more economically viable, spreading the initial investment costs across a wider range of users.

• This shared infrastructure reduces the financial burden on individual residents and businesses, making clean energy more accessible and affordable. Furthermore, these projects contribute to energy independence, lessening reliance on often unstable and expensive traditional power sources. This increased energy security is particularly vital in many African nations where grid instability and power outages are common occurrences, impacting both businesses and households.

Our take

• Real estate developments could be the next big driver of solar demand. Kenya is currently building affordable housing, and the government could lead the way by installing solar panels on these properties. However, the biggest demand likely lies in estates targeting the upper class. These consumers have high energy consumption and sufficient resources to guarantee repayment, making them attractive customers for solar developers.

• Doubling capacity to 3.2 MW and creating East Africa's largest rooftop solar installation isn't just a headline – it's a tangible demonstration of how large-scale mixed-use developments can meaningfully embrace renewable energy.  The integrated approach, serving both commercial and residential needs, maximizes impact and underscores the viability of this model for other urban centres in Africa.

• This isn't just about adding kilowatts to the grid. It demonstrates the financial sense of solar for businesses and residents by highlighting cost savings and energy independence. This project is a powerful case study for other developers and investors hesitant to embrace renewables. It shows that sustainability isn't just good PR, it's good business.

• Doubling capacity to 3.2 MW and creating East Africa's largest rooftop solar installation isn't just a headline – it's a tangible demonstration of how large-scale mixed-use developments can meaningfully embrace renewable energy.  The integrated approach, serving both commercial and residential needs, maximizes impact and underscores the viability of this model for other urban centres in Africa.

• This isn't just about adding kilowatts to the grid. It demonstrates the financial sense of solar for businesses and residents by highlighting cost savings and energy independence. This project is a powerful case study for other developers and investors hesitant to embrace renewables. It shows that sustainability isn't just good PR, it's good business.

• Projects like this are crucial for shifting the narrative around renewable energy in Africa.  It moves the conversation beyond pilot projects and theoretical potential to real-world implementation and tangible benefits. This kind of high-profile success can inspire further investment, drive policy changes, and ultimately accelerate the continent's transition to a cleaner, more sustainable energy future.