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Kenya has developed new mini-grid regulations to streamline development.
- The government believes that the regulations will attract private sector investment in the off-grid sector.
A new policy has been proposed in Kenya to attract investors into the country’s off-grid electricity market. The draft Energy (Mini-Grid) Regulations 2021, being pushed by the Energy and Petroleum Regulatory Authority (Epra), will allow mini-grids to continue operating even when the national grid reaches their area. The new rules will clearly indicate the requirements needed to approve mini-grids construction, Licensing procedure, grid connection and tariffs.
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Under the proposal, mini-grid operators can operate as a power distributor buying power from the licensee or as a power producer selling power to the licensee whenever the grid gets to their location. Under the proposals, Epra will allow developers to charge cost-reflective tariffs, which will allow investors to earn profit.