Kenya to replace feed-in-tariffs with auction-based system


Government officials of Kenya announced at the Renpower Kenya clean energy event in Nairobi that incentive programs will change in 2022, with mature technologies no longer receiving fixed payments.

According to pv magazine, solar, wind and geothermal power will no longer qualify for the nation’s new feed-in tariff (FIT) program and will instead be commissioned under an auction regime.

Biomass, small hydro, and unnamed "other" renewables projects with generation capacity under 20 MW are eligible for FIT payment. 

The International Renewable Energy Association estimates that Kenya had 147 MW of grid-connected solar production capacity at the end of 2021.

George Aluru, chairperson of trade body the Electricity Sector Association of Kenya, mentioned the need for Africa to utilize interconnectors to match clean power generation with demand.

Citing an estimate neighboring Ethiopia could have an 8 GW to 10 GW grid within a few years, which is higher than its demand, Aluru urged the governments of Africa to boost efforts such as those being made to link up national grids under the eastern and southern African power pools.

Aluru also emphasized the necessity of deploying utility-scale batteries more widely to balance out the supply from solar and wind generation.

Jemimah Kwakye-Fosu, senior investment officer of Nairobi-based SunFunder, urged other clean energy financiers to adopt methods to lower forex risk in Africa, where developers frequently need local currency backing but investors typically fork out dollars.

The United Nations Industrial Development Organization also discussed plans at the event to collaborate with the Japanese company Technova to capture excess clean energy as hydrogen for use in fertilizers, transportation, and export.

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