New incentives attract clean energy investors
Wed, 13 May 2009 16:03
TradeInvestKenya Staff



Kenya is set to see an increase in electricity generation from renewable sources as the private sector takes advantage of a new tariff incentive, The Standard reports.

Since launching a special tariff structure in April last year, the Kenya Power and Lighting Company (KPLC) has received a significant number of proposals from private investors interested in establishing small hydro-power projects.

David Mwangi, KPLC chief manager for planning, research and performance monitoring said that his organisation is receiving numerous enquiries from investors wanting to develop small plants of 10 megawatts or less.

The incentive policy enables KPLC to negotiate for a tariff structure of between 8 and 12 US cents per kilowatt of electricity generated from renewable sources with a maximum capacity of 50 megawatts.

According to The Standard, the incentive policy further outlines the following provisions:

  • Small hydro-power generators with a capacity of between 0.5 and 0.99 megawatts attract a maximum firm and non-firm power tariff of $0.12 per kWh and $0.10 respectively.

  • Generation from biomass with a capacity to produce more than 40 megawatts has maximum firm and non-firm tariffs negotiated on a commercial basis.

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