Kenya lifts seven-year freeze on PPAs

From the newsletter

Kenyan lawmakers have lifted the seven-year moratorium on new power purchase agreements (PPAs), clearing the way for additional electricity generation to be added to the national grid. The move comes as peak demand rises, with the government planning a special energy fund to support the construction of new power plants.

• The shortage of new generation capacity forced Kenya to rely on electricity imports from neighbouring countries, with imports from Ethiopia more than doubling to 200 MW.

• While the PPA freeze strained the national grid, it also encouraged captive power generation, which grew by over 200 MW in the past two years. The question now is whether lifting the freeze will slow captive power growth.

More details