Kenya to grow installed capacity by a third

From the newsletter

The government of Kenya plans to add 1,112 MW of new generation to the grid, roughly a third of the current installed capacity, after parliament lifted the seven-year freeze on power purchase agreements (PPAs). Talks are underway with 54 energy developers, most of them proposing small hydropower projects along with wind and solar plants.

• Lifting the moratorium on PPAs is seen as a major reset for the energy sector. But the talks now need to move quickly to avoid the bad history where project timelines stretch to 10 years and discouraged local investors.

• Parliament said new PPAs can be priced in Kenyan shillings, foreign currency or a mix of them. This will allow local costs and taxes to be paid in shillings while debts and other financing obligations remain in their original currencies.

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