BUSINESSECONOMYMARKETS

Kenya Power to Install Solar Panels as Consumers’ Shift Threatens Revenues

Share
Technicials installing solar panels in Kenya
Technicials installing solar panels in Kenya
Share

Kenya Power and Lighting Company (KPLC) is set to venture into solar power – in a bid to capitalize on the accelerated switch to solar by households and industrial operations in Kenya.

Many consumers have sought to install solar to avoid high power costs by KPLC as well as constant black-outs. Now, the state-owned firm is keen on getting a piece of the pie.

The company is reportedly planning to partner with private firms to have solar panels installed on customers’ rooftops, in a design-build-finance and operate (DBFO) model. Notably, the panels will remain the property of Kenya Power and the private firms they partner with.

“KPLC will undertake the role of project development by liaising with interested commercial and industrial customers who will provide rooftop space or ground space for installation of the PV (photovoltaic) modules.

“A private sector investor will then be selected competitively through a request for proposal (RFP) to develop and operate the grid tied captive solar plants at the customer premises,” internal documents from the firm read in part.

Solar panels on a rooftop in Kenya

KPLC expects to sell power generated from the solar panels at discounted rates to the owners of homes and commercial premises hosting the premises.

Excess electricity would be distributed to homes and premises adjacent to the panels.

READ ALSO>>>>>Kengen to Begin Direct Power Sales Ending KPLC Monopoly

“Consumers will benefit from cheaper solar energy generated during sunny hours… The solar plants will include storage with minimum autonomy to cancel out effect of short-duration supply interruptions which has been a major cause of concern among some commercial and industrial customers,” the documents disclosed.

Major firms and home-owners have been responsible for the increase in Kenya Power customers seeking to generate their own power for various reasons.

Stringent draft regulations introduced by the Energy and Petroleum Regulatory Authority (EPRA) in November 2020 sparked widespread outrage, with many perceiving them as a move to curb the meteoric uptake of solar energy by Kenyan consumers.

In January, EABL subsidiaries Kenya Breweries Limited (KBL) and East Africa Maltings became the latest major companies to seek regulatory approval to generate their own power at two plants in Nairobi and Kisumu.

Kenya Breweries Limited expects to generate 9.3 Megawatts at its Ruaraka plant in Nairobi and 2.4 Megawatts from a solar plant in Kisumu.

East African Maltings, on the other hand, plans to generate 2.2 Megawatts of electricity from a KVA generator at its Kampala Road plant.

READ>>>>>EABL to Generate Own Power Over KPLC Black-Outs

Written by
MARTIN SIELE

Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
New I&M Bank Kenya CEO Abdi Mohamed
FEATURED ARTICLE

 Markets: Events to Watch Out for this Week

This week is packed with massive dividend payments from heavyweights like Equity...

NSE MARKET WRAP
ANALYSIS

NSE: Winners and Losers as Tea firms Dominate

NSE (Nairobi Securities Exchange) at the end of last week, saw Limuru...

CBK
BUSINESS

CBK Seeks KSh70 Billion for Budgetary Support

(CBK) Central Bank of Kenya, the government’s fiscal agent is seeking KSh...

KenGen Managing Director Peter Njenga
ANALYSIS

KenGen Plc: Looking Beyond the Headline Numbers

KenGen Plc (Kenya Electricity Generation Company) released its 2025/26 financial results showing...