Boost for Kenya Power as new formula eases payment burden

Kenya is shifting to a new model where power plant developers will only be paid for the electricity they inject into the national grid.

This is a departure from the old practice where they are paid whether or not they generate power. The Energy and Petroleum Regulatory Authority (EPRA) said the country is adopting the “Take and Pay” model of power purchase agreement (PPA) between Kenya Power and investors, moving away from the current “take or pay” regime.