Kenya announces plan to start energy production auction

By M&M Reporter

Kenya is preparing to start an auction system for investors interested in investing in future power generation, Eng. Benson Mwakina, Director for Renewable Energy said today.

“We are in the final process of setting up the mechanisms for establishing an energy auction system that will allow potential investors to bid for the development of various power projects across,” Mwakina said. The new auction system is expected to replace the current system where investors come up with power project, signs power purchase agreement with Kenya Power and then implement the project, he said during the Great Energy Debate workshop at a local hotel.

The provision is contained in the new Energy Act 2019 assented by the president recently. The new law is expected to completely change the landscape of the country energy sector.

“The new law has also unbundled the sector, providing clear role and mandate for the various players to fulfill their obligation,” Timothy Gakuo, Chief Economist, Ministry of Energy said. “There is a proper provision for integration of county energy plans into the national energy plan, providing for synergies and complementarity.

This is expected to lead to provision of clean, accessible, affordable and available energy for all domestic needs and commercial use as is expected to address the real cost of energy through the chain of generation, transmission, distribution and retailing.

The new law has seen entities such as the former Rural Electrification Authority mandated with responsibility for renewable energy hence reamed Rural Electrification and Renewable Energy Agency (REREA); Energy Regulatory Commission becoming Energy & Petroleum Regulatory Authority (EPRA) among others.

“The provision of clean renewable energy is now formally anchored in the law and this portends new opportunities especially for the private sector players,” George Aluru vice chair for KEPSA Energy board said.

 

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