- The details of the licencing plan for the IPPs are under the Energy Regulations, 2024.
- The Kenyan electricity market will consist of wholesale and retail markets.
Kenya’s Ministry of Energy has announced plans to grant Independent Power Producers (IPPs) licences as part of a new wholesale and retail electricity market it wants to establish. In a March 1, 2024 notice, the ministry disclosed the plan to permit electricity retailers to sell to homes and businesses.
The ministry said the electricity market will function to ensure competition, transparency, fair, neutral, efficient and robust price discovery. It would as well provide extensive and quick price dissemination and design standardised contracts.
According to the energy ministry, they drafted the regulations to govern the generation, importation, exportation, transmission and distribution and retail supply of electrical energy. In addition, the electricity market will consist of wholesale and retail markets.
The retail market will purchase from the wholesale market and, in turn, supply to consumers. The ministry noted, “The wholesale market shall comprise of generation licensees and other licensees who will trade through the intermediary of an operator, who shall be designated by the Authority.
“A transmission or distribution licensee shall provide non-discriminatory open access to its transmission or distribution system for use by any licensee or eligible consumer upon payment of wheeling or use of system charges as shall be prescribed under these regulations.”
Contained under the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024, are other details of the licencing plan.