Kenya has decided to suspend the attribution of new licenses for wind and solar power projects until 2017, in an attempt to prioritize the development of cheaper electricity sources and to cut electricity prices.
The eastern African country plans to reach an installed capacity of 5.5 GW at the end of 2016, from about 1.7 GW currently installed. Under the government plans, 80% of the new capacity will be coal-fired, gas-fired or geothermal, with hydropower accounting for 5% and solar and wind power contributing up to 15% of new sources. Projects under development have already filled that quota, leading to the suspension of new licenses issuance. So far, the government has approved 630 MW of new wind capacity, including the 300 MW Lake Turkana wind project in northern Kenya, and 200 MW of solar plants. Kenya Power, the sole electricity distribution company, has to purchase all power generated by renewable plants, even if cheaper options are available. Kenya plans to cut average electricity prices by up to 23% over the next three years, despite an anticipated increase of industrial, mid-sized and large domestic user prices (up to 12%).
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