Rural Electrification Through Decentralised Off-grid Systems in Developing Countries by Subhes Bhattacharyya

Author:Subhes Bhattacharyya
Language: eng
Format: epub
Publisher: Springer London, London

6.2.7 Kenya

Kenya, located on the east coast of Africa, with a population of 38 million in 2008 is an important East African economy (Kiplagat et al. 2011). Recent IEA data (IEA 2010) indicates that only 16 % of the Kenya’s population has access to electricity and 33 million people lack access in the country. While 55 % of the urban population has access, only 1.5 % of the rural population is connected to the grid (IEA 2009). The electricity system with an installed capacity of 1345 MW in 2008 is relatively small. Hydropower and geothermal energy contribute about 80 % of the electricity generation, making the country highly renewable energy dependent for its electricity production (Kiplagat et al. 2011). But Kenya continues to experience a marked shortfall in its electricity supply, caused partly by system losses (estimated at 20 %), and partly by the country’s over-dependence on hydropower, which is frequently affected by the perennial droughts causing reduction in water levels in the national systems of dams (Rabah 2005).

The country has a long history of pursuing with rural electrification. The Rural Electrification Program (REP) was initiated in 1973 and lasted for 15 years. Although the number of household connections increased during this period, the progress was relatively limited. In 1997, the Electric Power Act was enacted and the Rural Electrification Authority (REA) was established which developed the first master plan and included the formulation of a rolling Rural Electrification Program Master Plan to present least-cost electrification options for target areas. The 1997 master plan prioritized a list of projects for implementation based on economic and social factors, regularly updated to show what has been done and to come up with new load centers. A new master plan is being developed to take stock of the present situation.

However, the Electric Power Act provided limited incentives for private sector participation and the creation of the REA did not result in an accelerated development. A new Energy Act came into existence in 2006 and the Rural Electrification Authority was created under this act to implement rural electrification programme and to accelerate implementation of rural electrification projects (Kiplagat et al. 2011). To support rural electrification the Rural Electrification Programme Fund was established under the provisions of the Energy Act 2006, which is supported through the electricity sales levy (charged at 5 % at present) and other fees and charges levied by the Energy Regulatory Commission, and other grants, donations, and contributions made available from the government budget or elsewhere. The Rural Electrification Authority is also required under the act to secure additional funds from other sources, including through participation of the private sector in the form of Public Private Partnerships. It can also enter into agreements with other international donor agencies. Kenya has also introduced the feed-in tariff system for grid-connected renewable electricity generation and hopes to attract private investors in this area.

REA is mandated to explore, promote and develop the use of sources of energy, including renewable energies. Kenya is endowed with substantial renewable energy resources but the attention so far has been on hydropower and geothermal energy.

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