The Electricity Sector Association of Kenya (ESAK) says that the inclusion of captive power installations will help Kenya achieve 100 per cent clean energy by 2030.
Speaking during a conference in Nairobi on Wednesday, ESAK Chairperson Eddy Njoroge said that Commercial and Industrial (C&I) installations will be a key enabler for sustainability.
"We see more uptake of C&I installations not only being beneficial to the grid but also useful to customers looking to manage costs, maintain a green manufacturing portfolio and ensure energy security," Njoroge said.
The conference, themed 'accelerating C&I installations for sustainability ' took place on Wednesday at Sarova Panafric Hotel in Nairobi where ESAK highlighted how C&I installation is in line with the country’s push for 100 per cent renewable energy.
"Today the drive is not only energy efficiency but also energy security, improving power quality and responding to environmental targets," ESAK CEO George Aluru said.
He added that "captive systems offer supply where the grid has not reached allowing establishments to access the services of electricity in an environmentally responsible manner."
According to Aluru, better economic outcomes for the nation will result from the opening of the market for captive power plants, which he said also makes it possible for the nation to absorb foreign direct investment and save money on the public financing of electricity infrastructure.
"To support these installations, new service firms will be founded, jobs will be created, investment will be absorbed, and efficiency will be increased," Aluru said.
"The anticipated 1GW of C&I installations by 2030 would equate to a total of 1 billion US dollars worth of investments in the country," he added.
Kenya's C&I installations were forecast to be 439 MW as of 2023 and are expected to grow to 1 GW by 2030.
The necessity for businesses to reduce their carbon footprint, become green, and ensure energy security and affordability for sectors is largely responsible for the rise in C&I installations.
The C&I energy mix in Kenya consists of geothermal, biofuel, small hydro, and solar photovoltaic (PV).
The Energy and Petroleum Regulatory Authority (EPRA) is working on the wheeling and net metering laws which they say will give consumers more influence over how much electricity is produced.
Businesses of various sizes, including malls, factories, and resorts, are opting to switch to solar power.
The initial driving reason for these installations was EPRA's implementation of energy management regulations throughout the previous 14 years.
