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Renewable Energy Regulatory Capacity Development

Renewable Energy Regulatory Capacity Development

State 

completed

Date 

1 January, 2013 to 31 March, 2014

Country 

Kenya

Region 

East Africa

Summary

This type of activity was part of the RECP start-up phase and is now being offered under the Service Line SEADS.

The Kenyan power market is characterised by consistently high‐demand growth, persistent supply shortages, and a priority on large‐scale, conventional power generation. The potential for small‐ and medium‐scale renewable energy power generation remains largely untapped, although there have been dynamic efforts towards market uptake both from public and private sector. The Government of Kenya has undertaken numerous reforms concerning the power sector in recent years, including an overhaul of the regulatory framework for small‐scale on‐grid renewable energy generation.

The EUEI PDF received a request by the Kenyan Ministry of Energyfor support in this reform process. The EUEI PDF implemented a support intervention through long-term experts, embedded in the Regional Technical Assistance Programme (RTAP), which in turn is hosted by Kenya Association of Manufacturers (KAM) and funded by the EU-Africa Infrastructure Trust Fund (ITF) and Agence française de développement (AFD). The experts provided direct advisory services concerning the regulatory framework for small-scale on-grid renewable energy power generation. Project implementation comprised the following activities:

  • support the fine-tuning of regulation (e.g. the feed-in tariff policy), where appropriate regulatory instruments already exist
  • development of new regulation, where there is a lack of required regulatory guidelines, e.g. for net-metering and power wheeling
  • a four-day workshop for regulators on financial modelling for small- and medium scale renewable energy projects
  • process assistance, namely technical backstopping for stakeholders (both from the public and private sector) in navigating the regulatory aspects of project development and the implementation or application of the regulatory instruments

This approach enabled the full realisation of benefits from integrating project development experience with policy advisory: channelling hard data and empirical evidence from the projects on the ground into the formulation of regulations, institutional capacity development and process streamlining towards supporting the Kenyan institutions in developing and fine-tuning the enabling market environment.

The kick-off meeting took place in January 2013 and the project was completed in March 2013. Key outputs comprised a draft regulation for Kenya’s first net-metering policy, several standardised templates streamlining the application process to the feed-in-tariff and documentation on the financial modelling training for regulators which took place in September 2013. The project outputs contribute to renewable energy market development in Kenya, in terms of increased investment, additional generation capacity and improved access to energy.For the outputs please refer to Related Publications on the right.

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