Electricity Sector Association of Kenya (ESAK) is calling for the incoming administration to review operations of the country’s energy sector to enhance electricity access in the country.
This comes of the backdrop of discussions the current government has undertaken with Independent Power Producers (IPPs) in order to review the Power Purchase Agreements (PPAs) in a bid to lower the cost of power in the country.
In the wake of rising electricity bills, the government initiated contract renegotiations with IPPs in a bid to lower power bills by up to 30pc between January and December 2022. Already, the first tranche of 15pc power reduction has been reflected on consumers’ power bills with the balance now expected to be completed by the new administration.
“With these discussions set to roll over onto the next government, there is room to re-look at the sector as a whole and not just the PPAs. The symbiotic nature of the players in the energy sector ensures a seamless working but on the flipside, if one part is not functioning well, the whole sector is affected,” said ESAK in a statement.
Of the total installed capacity of 2,984 megawatts, IPPs are estimated to be contributing 38pc.
With 8.6 million households connected to the grid, Kenya has achieved 75pc electricity access which is among the highest in Africa.
“It’s important to note that access to electricity enables us to have access to a multitude of services such as lighting, cooking, charging our devices and access to information among other services,” stated the association.
The lobby group is also calling for deployment of a balanced energy mix in the grid to ensure reliable power to households as Kenya target to achieve full transition to clean energy by 2030 and 100pc access to clean cooking by 2028.
Renewable energy currently accounts for 73pc of installed generation capacity with 90pc of the electricity in use derived from clean sources.
ESAK further says full operation of the Eastern Africa Power Pool will not only benefit the member states but it will also build towards the incorporation into other African power pools.
Kenya is already trading power with Ethiopia, Uganda and Tanzania.
“With such existing trade data, the new administration can check to see how best to expand, renegotiate and improve the regional power trade to Kenya’s advantage. This will also be an opportunity to scale up power plants in the region. With the necessary regulation, trade agreements between member countries can lead to growth in the electricity sector.”
