Kenya’s shrinking reserve margin sparks investment calls

From the newsletter

The Electricity Sector Association of Kenya (ESAK)  held its first Power and Transmission Baraza under the theme “Dialogues for a better Electricity Market”. The forum brought together sector leaders to discuss the industry’s direction and investment needs at a time when rising demand has pushed the reserve margin below the preferred 10 to 15%.

• The dialogue follows the lifting of the PPA freeze, and sector leaders are hopeful this will open the way for new generation and support the expansion of captive power through better frequency regulation.

• Even with captive growth, transmission remains one of the biggest grid gaps. KETRACO estimates the country needs about $250 million each year for the next 20 years to upgrade the network to an adequate standard.

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