Kenya explores renewable energy deals

The Kenyan government has begun search for a consultancy to explore the introduction of renewable energy auctions, with a view to cutting retail consumers’ power costs.

The Ministry of Energy and Petroleum said the successful bidder will conduct a study within six months in this line, whose recommendations if adopted will effectively revise the current national grid feed-in tariff policy that operates on a first-come first-served basis.


It said the study will be financed by part of proceeds from a loan received from the French Agency for Development for technical assistance to develop a power generation and transmission master-plan. 


According to the International Renewable Energy Agency, auctions involve the government floating tenders for installation of certain capacities of renewable energy-based electricity. Independent power producers participating in the auctions submit bids with price per unit of electricity at which they can develop the project. The government then evaluates offers, with pricing a key part of the criteria, before awarding power-purchase agreements to successful bidders.


The ministry said capacities of approved renewable energy projects and those likely to reach power-purchase agreements are approaching the limit as envisaged under the current feed-in tariff first enforced in 2008 and revised in 2010 and 2012.


Solar and wind power, it said, will be a key focus of the study to align the technologies “more accurately” in the energy sector planning projections.


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