The Regional Technical Assistance Programme (RTAP) in association with Economic Consulting Associates (ECA) and Carbon Africa hosted energy stakeholders and regulators including Energy Regulatory Commission ( ERC), Ministry of Energy (MOE) and Kenya Power at a workshop whose objective was to deliberate on the recommendation of a ‘Net Metering Assessment report’ prepared by the team for the Government of the Republic of Kenya.
The study was undertaken to establish a framework for net metering that will help to increase renewable electricity generation in Kenya. It assesses the likely technical and economic impacts of the adoption of a net metering programme in Kenya and identifies measures that could be implemented to address issues that may arise. The study findings are intended to inform the drafting of net metering regulations.
Kenya’s current policy on energy does not feature Net Metering. On 28 January 2011, the Permanent Secretary, Ministry of Energy, set up a Task Force made up of various stakeholders within the energy sector with the mandate to review the Energy Policy (Sessional Paper No. 4 of 2004), the Energy Act 2006 and related subsidiary legislation and to align them with the Constitution. The Task Force has since finalized the draft revised Energy Policy, and this new policy, unlike its predecessor, contains provisions on net metering.
Some of the challenges in the implementation of net metering pointed out in the study include:
1. Issues relating to solar PV interconnection such as compatibility of solar PV net metering with the Kenya Grid Code.
2. Grid stability and safety.
3. Impact on the current and future system load.
4. Possible higher costs than benefits to Kenya Power
The study recommended net metering to be introduced in 2 phases.
Phase 1 would entail making all renewable sources eligible for the programme, allowing banking not payment for net exports, application of a net metering credit of 62% of the retail tariff, application of an individual system cap of 500 kW, application of a total cap of 100 MW, an application fee, an allowance for only dual metering and a utility site assessments for initial installations to be conducted.
Phase 2 will then encompass:
1. "Settlement’ for net metering exports. In this case customers will have 2 options 1.) bank their exported energy and offset it against future consumption (as proposed under Phase 1), or Get paid a per kWh tariff by Kenya Power for their net exports.
2. Increment of the individual cap on system size (500 kW), to allow participation of larger customers.
3. Increment or removal altogether the cap on total net metering capacity (100 MW)
4. Recalculation of the value of net metering credits (62%), making use of significantly more data which will then be available.
5. Consideration of simplified or automatic approval procedures for proposed net metering facilities that meet certain requirements
For more information / a copy of the study please contact peris.kasae@kam.co.ke