The Energy and Petroleum Regulatory Authority (EPRA) has formally responded to the Standing Committee on Energy over the reported curtailment of geothermal power generation between July and December 2024. The statement comes in the wake of growing public and parliamentary concern regarding Kenya’s energy mix, renewable investments, and increasing reliance on electricity imports.

EPRA clarified that it does not issue directives to curtail geothermal energy. Such decisions are the responsibility of the System Operator at the National Control Centre, managed by Kenya Power. The dispatch of electricity to the national grid is determined by a range of technical and economic factors, including marginal generation costs, contractual obligations, demand, transmission constraints, and voltage stability.

“During peak hours in Kenya is when we import power from Ethiopia because solar and wind power are not used during the peak hours,” explained Eng. Joseph Oketch, EPRA Director of Electricity and Renewable Energy.

EPRA addressed concerns raised over lost revenue for Independent Power Producers (IPPs), stating that most are protected under Power Purchase Agreements (PPAs), which include provisions such as capacity payments or deemed generation. As such, they continue to receive revenue even when curtailment occurs.

Regarding energy imports, EPRA maintained that sourcing power from Ethiopia has been a cost effective measure to address a shortfall in installed local capacity a situation worsened by a government imposed moratorium on new PPAs. EPRA noted it is actively engaging both the Executive and Parliament to lift the moratorium.

With respect to the Ethiopia-Kenya power import agreement, the Authority confirmed that it is currently under review, but only in terms of expanding capacity during peak hours. There are no current plans to revise the arrangement in a way that would negatively impact off-peak local renewable generation.

Acting EPRA CEO Cyprian Nyakundi emphasized, “We don’t buy power from Ethiopia to replace Kenyan geothermal power but to supplement what we have already.”

Members of the Senate Energy Committee voiced strong concerns and posed direct questions to EPRA during the session.

“When we meet energy sector stakeholders, they talk about lifting the moratorium,” said Senator Mungatana. “But I don’t hear a united voice, despite having 417 members.”

Vice Chairman Senator Kisang added, “We are in agreement that the moratorium should be lifted and the Geothermal Power Company should be compensated.”

Senate Energy Committee Chairman Dr. Oburu Odinga questioned, “Why is our power generation in Kenya expensive compared to Ethiopia and Uganda?” He also inquired why the Geothermal Development Company is not compensated when steam is released but not used.

Senator Veronica Maina pressed further, asking, “How do we get electricity cheaper and affordable in Kenya?”

EPRA concluded its statement by reaffirming its commitment to energy security, sustainability, and preserving investor confidence in Kenya’s renewable energy sector.