On 28th February 2022, Kenya’s Energy and Petroleum Regulatory Authority (EPRA) lifted the ban on power purchase agreements (PPAs). This move was welcomed by investors, who had put on hold many renewable energy projects due to the ban.
The ban was imposed in June 2021 after the country’s Ministry of Energy raised concerns about the high cost of power generation in the country. The ministry argued that the country was already producing more power than it needed, and that new power purchase agreements would only add to the already high cost of electricity.
The ban affected many renewable energy projects in the country, including wind, solar, and geothermal projects. The projects had already been approved by the regulatory authority, but their implementation was put on hold due to the ban on PPAs.
The lifting of the ban is expected to boost Kenya’s renewable energy sector and attract more investment in the sector. The country has set a target of achieving 100% renewable energy by 2030, and the lifting of the ban is a step towards achieving this target.
According to the EPRA, the lifting of the ban was based on the need to promote investment in the renewable energy sector and ensure that the country meets its energy needs sustainably. The authority also noted that the new PPAs would be subject to a competitive bidding process to ensure that the country gets the best value for money.
The lifting of the ban has been welcomed by industry players, who have called for more support for the renewable energy sector in the country. They have also called for more incentives for investors in the sector to encourage more investment and boost the country’s energy security.
In conclusion, the lifting of the ban on power purchase agreements is a positive development for Kenya’s renewable energy sector. It is expected to boost investment in the sector and help the country achieve its target of 100% renewable energy by 2030. The government and industry players should work together to ensure that the renewable energy sector in the country is supported and that incentives are provided to encourage more investment in the sector.
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