Kenya Energy Lighting Firm PLC (Kenya Energy) owns and operates a lot of the electrical energy transmission and distribution system in Kenya. Kenya Energy sells electrical energy to over 8.9 million clients. In the course of the yr ended thirtieth June 2022, Kenya Energy recorded a 6.6% development in gross sales to 9,813 gigawatt-hours, primarily supported by an increasing buyer base, improved system effectivity, and an intensive countrywide loss discount marketing campaign geared in the direction of tackling theft of electrical energy. This resulted right into a KShs.3.5 billion revenue after tax. Kenya Energy added over 600,000 new clients within the final yr.

To maintain profitability and develop shareholder worth, Kenya Energy is seeking to leverage new enterprise frontiers as a part of its five-year Strategic Plan for the interval 2023-2028. Among the key pillars of this new development plan embody electrical mobility, getting extra Kenyans to shift to electrical cooking, power storage, and electrification of a number of sectors to assist decarbonization.

Let’s check out a few of these alternatives:

Electrical Mobility

There are quite a lot of thrilling developments in Kenya’s nascent electrical mobility sector. There are actually effectively over 20 startups in Kenya working within the electrical bike sector, led by firms like Ampersand, Roam, Ecobodaa, Fika Mobility, Stima Boda, Arc Journey, Powerhive, Mazi Mobility, Kiri EV and others. There are a number of extra working within the electrical bicycle, scooter, and micromobility sector led by Ebee, Arc Journey, Jua bike, and several other different gamers. The electrical bus facet of issues is now growing properly as effectively, led by BasiGo and Roam. The electrical four-wheeler phase has not been forgotten and can also be getting some early traction with a number of gamers equivalent to Hyundai, which gives the 64 kWh Hyundai Kona EV in Kenya, Driveelectric Kenya, Vaell, and Equator Mobility. On the charging infrastructure entrance, EVChaja, which already has a presence in a number of main Kenyan cities and cities, desires to guide the cost by offering a charging community across the nation. Options Africa Ltd from Mombasa is bringing electrical tuk-tuks to Kenya. The tuk-tuk phase is one other essential phase that’s ripe for electrification.

Kenya’s grid is by powered 90% by renewables, led by geothermal, wind, hydro, and a few utility-scale photo voltaic. There’s a huge alternative for KenGen, Kenya’s largest electrical energy producing firm and in addition largest operator of Kenya’s geothermal fleet, in addition to Kenya Energy, to unlock efficiencies and promote extra kWh throughout the in a single day off-peak intervals to electrical car customers, thereby producing extra income. Kenya’s put in capability is simply over 3 GW. The height demand is simply over 2.1 GW. In the course of the off-peak intervals in a single day, demand drops to round 1.3 GW. Earlier this yr, Kenya Energy appearing CEO Rosemary Oduor stated, “Kenya Energy can provide electrical energy to cost 50,000 buses and two million bikes throughout off-peak hours.” Kenya Energy is now working to reap the benefits of this chance. To assist catalyze the method, Kenya Energy has established an E-mobility Liaison Workplace which is remitted to develop a method to information the corporate’s participation in e-mobility. The workplace additionally facilitates the corporate’s engagement with different stakeholders in e-mobility. In the course of the present monetary yr, Kenya Energy has put aside KShs.40 million to buy 50 electrical motorbikes, 3 electrical automobiles, and building of three electrical car charging stations for its personal use, knowledge assortment, in addition to for demonstration functions.

Clear Cooking

In accordance with the IEA Africa Power Outlook 2022, Ghana, Kenya, and Rwanda are on monitor for full entry to electrical energy by 2030 and could be good examples for different international locations to observe. Though Kenya has made large progress in rising entry to electrical energy, the principle supply of power for cooking stays wooden fuels and charcoal for almost all in rural and peri-urban areas. Liquid Petroleum Fuel (LPG) can also be extensively used, particularly in city areas. The IEA Outlook finds that even to this present day, 64% of Africans rely predominately on gathered wooden, agricultural, and animal wastes as gas for cooking. In Kenya this quantity can also be above 50%.

Folks have been utilizing wooden, charcoal, and LPG for cooking as a result of they imagine that cooking with electrical energy is pricey. Tariffs for residential shoppers in Kenya are round 20 cents/kWh. Kenya Energy has subsequently been happening a drive to advertise electrical cookers to stimulate demand. Kenya Energy says, “To advertise clear cooking utilizing electrical energy, Kenya Energy is working with numerous organisations which are concerned within the e-cooking worth chain, together with producers of recent electrical energy cooking devices, to hold out buyer schooling on cooking with electrical energy. The Firm carries out sensitisation classes at its E-cooking Demonstration Centre which is positioned at Electrical energy Home in Nairobi.”

Decarbonization

Lots of industrial and manufacturing processes are nonetheless carbon-heavy. The meals and beverage sector is likely one of the sectors the place there are alternatives for electrification as know-how advances. Historically, breweries and producers of different drinks have been utilizing quite a lot of heavy gas oil for his or her boilers in Kenya. For instance, in its 2022 Sustainability Report, East African Breweries Restricted (EABL) gave an replace on the refurbishment of its boilers. To this point, the corporate has managed to interchange the previous Heavy Gasoline Oil (HFO) boilers in Nairobi and Kisumu with biomass boilers that use agricultural waste equivalent to macadamia shells, sugar bagasse, espresso, woodchips, and rice husks. The biomass boilers turned operational in June of this yr, and EABL says that the boilers are at present working at optimum capability. The swap to biomass will assist cut back its carbon emissions by 95% (about 34,000 tonnes) per yr. As technological developments within the sector progress, electrification of boilers is also key focus areas in the long run. Electrification of evaporation and  pasteurization processes will likely be different essential alternatives within the drive for decarbonization.

A number of gamers in Kenya are exploring the inexperienced hydrogen area for ammonia manufacturing for fertilizers to assist lower Kenya’s fertilizer import invoice. There may very well be an enormous alternative there as effectively for Kenya Energy to energy these electrolyzers.    Rising the manufacturing of secondary steelmaking utilizing  Electrical Arc Furnaces (EAF) for the metal trade may very well be a part of the bouquet of demand drivers, and Kenya might work in the direction of being a regional hub for a greener metal trade powered by its considerable renewables. Tariffs for patrons with a minimal load of 40 MW related at 220 KV are typically fairly favorable at round 4 cents/kWh off peak and seven cents/kWh peak. There are additionally particular financial zones in Kenya the place the tariffs are round 4 cents/kWh always.

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