By Conrad Onyango
More rural households are set to benefit from cheaper and clean power without having to go through Kenya Power as private and State-owned firms rush to challenge monopoly in the energy sector.
The Rural Electrification Authority (REA) has become the latest applicant for a permit to generate, distribute and supply electricity to homes using solar.
It said it would make an official request to the Energy Regulatory Commission (ERC) for the licence on July 5.
Upon approval, REA will be the third firm seeking to directly sell solar-generated electricity to rural households.
The authority has made an application for construction of a 60KW solar-hybrid power plant at Biyamhdow, Wajir county, where its competitors are absent.
“The grant of the permit will not have adverse effect on any public or local authorities, companies, persons or bodies of persons within the area of undertaking,” said REA chief executive Ng’ang’a Munyu in a public notice.
Nairobi- based PowerGen made its application to use micro-grids in May targeting Isiolo residents while US-based PowerHive has already been granted the licence to sell its electricity to more than 1,500 homes in Kisii.
The two private power producers have collectively set aside Sh2.2 billion to connect more than 100,000 off-grid homes to the national electricity network.
World Bank figures show that two in every 10 Kenyans have access to electricity under the current regime where Kenya Power is the sole seller.
REA has opened its application to objections as required in the Energy Act 2006.
Power generator KenGen has already spelt out plans to detach itself from Kenya Power to start selling electricity directly to consumers.
It plans to set up industrial parks at Olkaria in Naivasha by end of the year to cushion its revenue margins that are at risk of a plunge when independent power producers (IPPs) get a nod to directly sell power to consumers.
ERC has licensed 23 IPPs which are more than the 20 issued to KenGen.
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