Policies

2nd revision of Feed-in tariffs for Renewable Energy

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 2 April 2024

Second revision of feed-in tariffs for Kenya was adopted in December 2011 entering into force on January 2012. The revision act introduced:

  • standardised power purchase agreements (PPAs) templates to be used as a basis for negotiations;
  • guidelines for connecting small scale renewables to the grid to be used when undertaking grid connection study that all developers are required to perform;
  • Revised implementation guidelines to include a standardised application form and progress reporting and monitoring frameworks;
  • Changed feed-in tariff levels.

The FiT values for small renewable projects (up to 10 MW of installed capacity) connected to the grid:

 


 |   | Duration | Installed capacity (MW) | Standard FiT (USD $/kWh) | Percentage Escalable portion of the Tariff | Max. capacity (MW)
| Wind | 20 years | 0.5 – 10 | 0.11 | 12% | 10
| Hydro | 0.5 | 0.105 | 8% | 10
| 10 | 0.0825
| Biomass | 0.5 – 10 | 0.10 | 15% | 10
| Biogas | 0.2 - 10 | 0.10 | 15% | 10
| Solar (grid) | 0.5 – 10 | 0.12 | 8% | 10
| Solar (off-grid) | 0.5 – 10 | 0.20 | 8% | 1

The Feed-in tariff levels are denominated in the US dollars. The FiT applicable at the time a PPA is signed is the fixed value which will apply over the 20 year life of the PPA.

The cumulative capacity contribution by FiT projects of up to 10 MW shall not exceed 10% of system-wide generation capacity. When the total installed capacity of the embedded generators approaches the 10% limit, Government will consider undertaking a comprehensive study to determine whether a higher level of embedded capacity can be accommodated.

The FiT values for renewable projects above 10 MW of installed capacity:

 


 |   | Duration | Installed capacity (MW) | Standard FiT (USD $/kWh) | Percentage Escalable portion of the Tariff | Max. Cumulative capacity (MW)
| Wind | 20 years | 10.1-50 | 0.11 | 12% | 500
| Geothermal |   | 35-70 | 0.088 | 20% for first 12 years and 15% after   | 500
| Hydropower |   | 10.1-20 | 0.0825 | 8% | 200
| Biomass |   | 10.1-40 | 0.10 | 15% | 200
| Solar (Grid ) |   | 10.1-40 | 0.12 | 12% | 100

 

For more details on Kenya’s feed-in tariff policy please refer to the official revision document.

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