Powering Kenya’s Clean Energy Future: Insights from EPRA
Kenya is a leader in Africa’s renewable energy sector, with more than 90% of its electricity generated from clean sources. As the country works towards its target of 100% clean energy by 2035, the Energy and Petroleum Regulatory Authority (EPRA) is playing a central role in this transition. In this interview, EPRA outlines the Authority’s priorities – from scaling renewable capacity and enabling private investment to advancing regional power trade and achieving universal electricity access by 2030.
What are EPRA’s current priorities in supporting Kenya’s transition to cleaner energy sources over the next 5–10 years?
Kenya remains a regional leader in renewable energy development, with over 90% of its electricity generated from geothermal, hydro, solar, wind, and biogas sources. As the country targets 100% clean energy by 2035, EPRA continues to play a significant role in enabling this transition through several key regulatory initiatives, including:
- Issuing green hydrogen and derivatives guidelines to attract private investment and support decarbonization in hard‑to‑abate sectors such as steel, cement, and agriculture.
- Developing geothermal resources regulations to promote exploration, development, and increased private-sector participation.
- Establishing biofuels regulations to support clean cooking and enable future blending mandates—anticipated to begin with E‑5 after-market readiness in about five years.
- Advancing the LPG Growth Strategy to expand access to clean cooking fuels.
- Implementing mini‑grid regulations and licensing renewable mini‑grids and captive power plants to expand clean energy capacity.
- Introducing net‑metering regulations to enable prosumers to supply excess power to the grid, enhancing renewable energy uptake and storage.
- Enforcing solar water heating regulations to accelerate adoption in domestic and commercial sectors, thereby reducing greenhouse gas emissions and improving Kenya’s carbon footprint.
What other regulatory reforms are being considered to attract more private and foreign investment into Kenya’s energy sector?
The Ministry of Energy and Petroleum, in partnership with EPRA, is currently in the tail end of developing the regulatory framework for BESS in the country, which shall provide additional opportunities for private investment to support the deployment of BESS at both the generation and transmission nodes of our grid.
The Cabinet Secretary is also expected to gazette the Electricity Market, Bulk Supply, and Open Access Regulations, which will open private investment in both distribution and transmission infrastructure in the country.
With Kenya now trading power with Ethiopia and the Eastern Africa Power Pool (EAPP), what are the key benefits of this regional integration for the country and its consumers?
- Ethiopia has a large baseload capacity from its hydroelectric power plants. Ethiopia supplies to Kenya firm capacity at a lower tariff of around US Cents 6.5/kWh, which is slightly lower than our average cost of generation. Of course, most generating capacities in Ethiopia are owned by Ethiopia Electric Power, which is 100% government-owned enterprise.
- The EAPP enables the region to trade excess energy and power and save on idle capacity utilisation and venting of steam. The country currently has excess energy (not power) at certain times, and even during off-peak hours, we curtail some of our baseloads. EAPP gives us the opportunity to buy capacity power and sell energy.
- EAPP will also introduce competition and efficiency in the electricity market.
EPRA’s net-metering regulations (2024/2025) allow consumers to feed excess solar power into the grid, with domestic systems capped at 10kW and Commercial and Industrial (C&I) systems at 1MW. What are the implications of these caps for consumers and market growth?
The Net Metering Regulations enable electricity prosumers to supply excess generation to a distribution licensee’s grid in exchange for energy credits. The framework is designed to enhance the viability and uptake of variable renewable energy by allowing prosumers to offset consumption while supporting utilities with additional clean generation capacity.
To ensure safe integration, the regulations establish capacity limits based on technical considerations. For domestic users, the 10-kW cap aligns with the safe operating range of typical three‑phase household systems and is not expected to hinder market growth, as over 90% of homes require systems below this threshold.
For C&I installations, grid‑impact studies conducted by the Authority determined that a 1-MW limit maintains grid stability and operational reliability. Similarly, this cap is not projected to constrain market adoption, as most existing C&I systems fall below 1 MW.
How is EPRA streamlining regulations for off-grid and mini-grid solutions, and how will this support Kenya’s goal of universal electricity access by 2030?
Kenya’s National Electrification Strategy underscores the vital role of off‑grid and mini‑grid systems in supporting nationwide electrification, especially in areas where traditional grid extension is not feasible. To accelerate progress toward universal electricity access by 2030, the Authority is streamlining regulations to make it easier and more predictable for developers to build and operate decentralised energy solutions. These reforms aim to boost investor confidence, simplify licensing, and expand energy access in underserved communities.
Key regulatory actions include:
- Enforcing the Energy (Electricity Licensing) Regulations, 2012
These regulations set out the legal requirements for licensing electricity generators, distributors, and suppliers, including off‑grid and mini‑grid operators. By defining clear procedures, developers can establish decentralised energy systems legally and efficiently in regions not connected to the national grid.
- Applying the 2018 Mini‑Grid Procedures, Guidelines, and Tariff Model
The 2018 guidelines offer developers consistency and predictability by outlining approval processes, tariff‑setting methods, licensing steps, and operational standards for mini‑grids. The accompanying tariff model further simplifies project development by standardising tariff calculations and reducing administrative delays.
- Advancing the Draft Energy (Mini‑Grid) Regulations
Now in the final approval stages, these draft regulations will formally govern the mini‑grid sector. They introduce clear rules on licensing, technical standards, consumer protection, service quality, and local content. Once enacted, they will strengthen regulatory transparency and reduce investment risk, supporting faster rollout of mini‑grids across the country.
