15th November 2016
The Ministry of Energy and Petroleum today constituted a task force to undertake in the review of contracts between the Independent Power Producers (IPPs) and Government on the basis of economic changes in the Power Purchase Agreements (PPAs) and to recommend appropriate policy action that will enable the Government achieve value for money on all PPAs signed to date.
This followed the directive from His Excellency the President, during the State house Energy Summit held on the 29th of June 2016, where he directed that all contracts be reviewed. The review is not only confined to the existing PPAs, but will also include review of tariffs for on-going negotiations between KPLC and IPPs including Feed-in Tariffs projects.
Hon. Keter, in his speech stated that the Ministry has suspended further processing of expression of interest under the Feed-in Tariffs Policy until the task force finalizes its work, mentioning various negotiations which are under various levels including Solar energy, Wind and Biomass which constitutes to about 3600MW that has been committed by IPPs.
“With technological advances and innovations, the cost of equipment for Feed-in Tariffs technologies have drastically reduced and we intend to leverage on this positive change so that we can give Kenyans the best tariff.” Said CS Keter.
The taskforce comprises representatives from the National Treasury, Kenya Private Sector Alliance (KEPSA), Kenya Association of Manufacturers (KAM), Ministry of Energy and Petroleum (MOEP), State Law Office, Energy Regulatory Commission (ERC), Kenya Transmission Company (KETRACO), Kenya Power and Lighting Company (KPLC), Kenya Electricity Generating Company (KenGen), an expert from Strathmore University and University of Nairobi, an expert in Energy Regulation and an expert in Commercial Law. These representatives have until 31st December, 2016 to submit their policy recommendations to the Ministry of Energy and Petroleum for implementation.