So, Kengen does not have the capacity to supply energy for the country. Residential use is the highest consumer of energy, hence the power outage at 7 pm because everyone is at home with all appliances ON. Then from a rural standpoint, rural electrification is too expensive for folks to lock onto the grid.
So Microgrids – small-scale versions of the centralized electricity system are being set up around the country to supplement for what Kengen and KPLC cannot.
Imagine a village of 500 households each being supplied by one microgrid that is powered by solar energy. The initial investment comes from the project developers. Who then sets tariff rates that are agreeable to the community.
This is a big problem in urban and rural areas. Urban areas have an issue as homes, offices would like to regulate their energy usage and control gadgets. For example online UPS to control computer usage or ways to manage data center energy use.
Rural areas, the microgrids that pop up will need regulation in energy management to avoid overloading or distribution problems. Siemens, Boeing Energy offer such solutions, but are too expensive. We need a localised solutions for this.
Carbon Development Mechanism
Carbon Development Mechanism (CDM) is a monetizing function of incentivising people to go green and reduce carbon emissions. These Microgrids, are powered by clean energy e.g. biogas, biofuel, geothermal, solar, wind. Project developer can turn his project into a CDM project and earn extra revenue (Which is an unregulated and untaxed industry!) to initiate their project. Kengen earns 442 million Kshs per year for producing 130MW from its GeoThermal plant.
So now you see why I want to get into this energy business…right?
Many thanks to Halima of Agesgroup.org 🙂 for quenching the knowledge thirst