Experts reckon that solar energy offers Kenya the shortest route to lighting off-grid towns. PHOTO | FILE
By NEVILLE OTUKI, notuki@ke.nationmedia.com
In Summary
- PowerGen has sought approval from the Energy Regulatory Commission (ERC) to generate, supply and sell power to homes using its solar energy micro-grids.
- The company plans to invest up to Sh1 billion in the construction of micro-grids to light up off-grid homes in areas like Isiolo.
- Kenya Power has been the sole supplier and seller of power, denying the sector competitiveness.
More Kenyan homes will be connected to the electricity grid without having to go through Kenya Power if the energy regulator gives the nod to private companies seeking to challenge the current monopoly in the sector.
Nairobi-based renewable energy firm PowerGen has sought
approval from the Energy Regulatory Commission (ERC) to generate, supply
and sell power to homes using its solar energy micro-grids.
If granted, it would become the second private
company to sell electricity outside Kenya Power after US-based Powerhive
that has more than 1, 500 households in Kisii as clients.
Powerhive plans to connect 100, 000 more homes in western Kenya this year at a cost of Sh1.2 billion.
Kenya Power has been the sole supplier and seller
of power, denying the sector competitiveness. The Nairobi bourse-listed
utility firm buys electricity from producers like KenGen for onward sale
to customers.
“Selling renewable energy to consumers is the
direction we are taking,” PowerGen chief executive Sam Slaughter said
yesterday on the sidelines of a conference on electricity mini-grids in
Nairobi.
The company plans to invest up to Sh1 billion ($10
million) in the construction of micro-grids to light up off-grid homes
in areas like Isiolo.
Micro grids work well in areas with a dense concentration of homes since the small grids cover short distances.
Experts reckon that solar energy offers Kenya the
shortest route to lighting off-grid towns since the option of stretching
the national grid to connect the areas takes longer and gulps enormous
resources.
The country has set a target of connecting all homes to power by 2020- about half are currently lit.
But the Energy Bill, which is awaiting Parliament’s
approval, takes away Kenya Power’s role of buying power and awards it
to an independent player for the utility firm to concentrate on fixing
its ageing infrastructure for efficient distribution and supply.
Powerhive president and CEO Christopher Hornor said Kenya presents a huge lucrative market.
Kenya has recently attracted multiple
multinationals, eyeing a piece of the solar energy market with some
supplying equipment while others construct solar farms.
They include UK firm Solarcentury, the developer of
a solar carport at Garden City Mall on Nairobi’s Thika Road and
India-based Astonfield Solar- developer of a 2-megawatt solar plant at
Two Rivers Mall in Kiambu County
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