Kenya’s Power Regulator Approves New e-Mobility Particular Electrical energy Tariffs & New Time of Use Tariffs
Kenya Energy Lighting Firm PLC (Kenya Energy) lately submitted an software for a tariff overview to Kenya’s power regulator EPRA. One factor that stood out in Kenya Energy’s preliminary software for me was a proposed particular tariff for electrical mobility.
As a key stakeholder within the e-mobility ecosystem, Kenya Energy has been very energetic in selling e-mobility. Kenya Energy has additionally recognized e-mobility as one of many key areas that can assist maintain profitability and develop shareholders worth. Kenya Energy is trying to leverage on new enterprise frontiers as a part of its five-year Strategic Plan for the interval 2023-2028. A number of the key pillars of this new progress plan embody this sturdy give attention to electrical mobility, getting extra Kenyans to shift to electrical cooking, power storage, and electrification of a number of different sectors to assist decarbonization. Kenya Energy has additionally introduced plans to transition its personal fleet to electrical.
Yesterday, the power regulator introduced the tariffs it had accredited which shall be efficient from the 1st of April, which is only a week away. As a part of the accredited tariffs, the e-mobility tariff has been included. One other essential replace was the enlargement of the Time of Use (TOU) tariff to different sectors together with this e-mobility space in addition to the small business section. The brand new e-mobility tariff has been set at 16 Kenya shillings for power consumption as much as 15,000kWh throughout peak intervals and eight Kenya shillings per kWh throughout off-peak intervals additionally as much as 15,000kWh. 16 Kenya shillings works out to 12 US cents/kWh on the present trade fee. That is earlier than taxes and different expenses are added to the ultimate value the customers pays. This additionally means the tariff beneath the TOU program shall be simply 6 US cents/kWh. The 16 shillings is decrease than the overall home tariff which is 20.97 shillings per kWh for consumption above 100kWh and the small business tariff which has been set at 20.18 shillings/kWh for consumption above 100kWh. The e-mobility tariff can be fastened till 2025/2026.
Kenya has an put in electrical energy era capability of three,321 MW. The height demand is 2,132MW. It’s the low in a single day off-peak demand of 1,100MW that Kenya Energy desires to use initially to energy Kenya’s transition to electrical mobility. Renewables make up a lot of the era capability in Kenya and supplied 89% of Kenya’s electrical energy era in 2021 due to contributions from geothermal, wind, hydro, and a few utility-scale photo voltaic. Kenya is likely one of the main gamers within the geothermal house and is within the prime 10 on the planet with regards to geothermal era put in capability. Electrical automobiles in Kenya shall be charged utilizing a few of this very clear electrical energy. As most of EV charging globally occurs in a single day, this low off-peak demand focused for EV charging will assist unlock efficiencies from accessible era capability similar to Kenya’s geothermal vegetation in addition to boosting Kenya Energy’s revenues, while serving to to cut back Kenya’s large fossil gasoline import invoice.
Kenya has a excessive fossil gasoline import invoice that’s now stated to be about $500 million per thirty days and is exacerbating Kenya’s commerce deficit. This new e-mobility tariff in addition to the brand new TOU program for the small business classes which has been set at 50% of the power cost will assist enhance uptake of e-mobility.
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