Ministry lifts freeze on new power purchase negotiations

The Ministry of Energy has lifted a moratorium placed on new power purchase agreements (PPAs) negotiations setting the stage for the signing of new power deals.

In lifting the freeze, the Ministry says processes and approval mechanism to the PPAs have now been clarified.

“That process has been concluded and a number of documents that guide this process have been revised and will be made public,” Energy Cabinet Secretary Monica Juma said on Friday.

President Uhuru Kenyatta ordered the cancellation of all ongoing and incomplete power purchase agreements being negotiated with Kenya Power in September last year on recommendations of taskforce set up to guide reforms in the sector.

The freeze sort to prevent steeper power bills resulting from idle capacity charges charged by independent power producers (IPPs) for produced but unused electricity.

The taskforce wanted future power purchase agreements to be in line with the Least Cost Power Development Plan (LCPD) which is underpinned on leveraging renewable energy sources.

The Ministry of Energy says it has now updated guiding principles to the LCPD to include improved integration of renewable energy technology and emerging technologies.

At the same time, the Ministry says it has generated a Kenya energy mapping system that will guide planning and offer guidance on potential areas of investments by interested parties.

The Energy and Petroleum Regulatory Authority (EPRA) has also revised the template on licensing procedures.

The lifting of the moratorium is set to spur interest in renewable energy investments in the sector.