Kenya plans to leverage on the recently imposed e-mobility tariff to spur the uptake of electric vehicles.
The new e-mobility tariff that took effect on April 1 has been set at Sh16 for energy consumption up to 15,000kWh during peak periods and Sh8 per kWh during off-peak periods.
Energy and Petroleum Regulatory Authority introduced the special tariffs to promote both clean cooking and electric mobility to grow electricity demand and promote the global agenda on climate change and sustainability.
"(There is) introduction of Bulk Tariffs applicable to SMEs, and commercial and industrial customer categories to encourage retail electricity business which is expected to increase efficiency and improve customer experience. (There is also) introduction of Time of Use tariff for SMEs at half the energy charge to promote extended business operations," the regulator said.
The amount is an addition to other taxes and charges already loaded on the cost of electricity. The e-mobility tariff is also fixed until 2025/2026.
Kenya Power had identified e-mobility as one of the key areas that will help sustain profitability and grow shareholders value.
The utility firm plans to leverage on new business areas as part of its strategic 2023-2028 strategic plan.
Other targeted areas for new growth include getting more Kenyans to shift to electric cooking, energy storage, and electrification of several other sectors to support decarbonisation.
Kenya Power has also announced plans to transition its motor vehicle fleet to electric.
Kenya has an installed electricity generation capacity of 3,321 MW.
The peak demand is 2,132MW. It is the low overnight off-peak demand of 1,100MW that Kenya Power wants to exploit initially to power Kenya’s transition to electric mobility.
Renewables make up most of the generation capacity in Kenya and provided 89% of Kenya’s electricity generation in 2021 thanks to contributions from geothermal, wind, hydro, and some utility-scale solar.
