The Electricity Association of Kenya (ESAK) has made operational its electricity markets arm that will encourage the growth of energy demand and alternative markets for power produced in the country.
The activation of the fourth working group, whose members have been drawn from different energy disciplines, will intensify the push for interconnectivity of power in East Africa.
Additionally, the group will have a voice in shaping policy and transforming the sector.
This is through contributions and submissions on legislation and regulation of the electricity space and by extension, supporting the development of the wider East African market for power .
This is in line with the African Single Electricity Market (AfSEM).
“Moving into the future, we are looking to work with other stakeholders to support growth in energy demand through initiatives such as e-mobility and green hydrogen derivatives such as fertiliser and e-methanol,” ESAK chairperson George Aluru said.
The activation of the group follows the recent rollout of a blueprint by ESAK to support Kenya’s transition to 100 percent clean energy by 2030.
Besides calling for increased productive use of electricity, the six-pillar blueprint has a key focus on reducing investor risk, enabling policies and regulations, grid enhancements, sustainable financing and encouraging just transition.
The six are aimed at supporting Kenya’s drive to achieve 100 per cent clean energy by 2030.
The expansion of the markets for electricity produced in Kenya will enable further harnessing of the potential for power generation and encourage the sustainability of the sector.
Kenya has been ranked top in the use of renewable and clean energy in the Horn of Africa, helping mitigate the effects of climate change.
A report by the International Energy Agency (IEA) dubbed ‘Clean Energy Transitions in the Greater Horn of Africa,’ says Kenya has made massive investments in renewable and clean energy, among the eight countries surveyed.
The initiative comes at a time that the association is celebrating its third anniversary with at least 1 Gigawatt (GW) tied to the grid, of which nearly 800 Megawatts (MW) is utility-scale capacity.
Data from Ministry of Energy show that Kenya has also aggressively increased access to the power grid, having more than doubled electricity access from 32 per cent in 2013, to 75 per cent of households in 2022.
The access rate for urban areas stands at 100 per cent, while rural Kenya stands at 65 per cent, meaning almost every household in the urban areas has access to electricity.
Kenya’s installed electricity capacity as of 2021 stood at 2,990 MW, a significant growth from 1,800MW in 2014, but still low for a country with a population of over 50 million.
The government has been pursuing efforts to increase power demand and supply, and lower the cost of electricity by injecting cheaper renewable energy.
This is from sources such as geothermal, wind, solar, and the addition of natural gas into the energy mix, while weaning off the more expensive heavy fuel oil (HFO) plants.
It is expected that generation will reach 5,000MW by the year 2030, with the bulk of it coming from geothermal, natural gas (imports), wind, and solar.
