RE-SourcesRenewable Energy Sources
There has been consistent growth in demand for electricity in Kenya estimated at an average of 7% per annum over the past 10 years. There are approximately 1.46 million customers on the electricity grid (KPLC, 2010) but still less than 20% of Kenyan households are connected to the electricity grid,and in rural areas the figure is less than 8%.
The Government of Kenya plans to provide access to electricity for an additional 1 million homes by 2012 and the electrification rate is set to increase to 40% by 2030.There is a major problem with lack of electricity for social and economic (productive) activity, particularly during peak load periods. Through Sessional Paper No. 4 of 2004 and Energy Act of 2006, the Government of Kenya is committed to promoting electricity generation from Renewable Energy Sources (RES).
In addition, a Feed-in-Tariffs (FiT) Policy has been formulated to promote the generation of electricity using renewable energy resources and improve the rating of Kenya’s renewable energy sector as an attractive destination for substantial private sector investment. Under the FiT system, investment security and market stability for investors in electricity generation from renewable energy sources is provided whilst encouraging private investors to operate their power plants prudently and efficiently to maximize returns. This will facilitate the exploitation of the abundant renewable energy sources available in the country. The FiTs were introduced in 2008 and revised in 2010 and 2012 to update the tariffs and accommodate additional renewable energy sources.