Kenya’s Ministry of Energy has announced it is to grant licences to Independent Power Producers (IPPs) as part of a new electricity wholesale and retail market it wants to establish. Details are contained under the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024. “The electricity market shall consist of a wholesale market and a retail market. The retail market will purchase from the wholesale market and, in turn, supply to consumers. Purpose of the electricity marketThe Ministry said the electricity market will function with the following objectives:Ensure competition, transparency, fair, neutral, efficient and robust price discovery,Provide extensive and quick price dissemination, andDesign standardised contracts.
