The government has Wednesday unveiled a raft of measures aimed at addressing shortage of electricity in the country and to forestall possible rationing of the commodity.

Speaking in his treasury office after chairing the inaugural meeting of the National Task Force on Accelerated Development of Green Energy, Prime Minister Raila Odinga announced that as an immediate measure, one million energy saving bulbs will be distributed free of charge in exchange for regular bulbs that are being used by households.

During the meeting the Kenya Electricity Generating Company (KENGEN) gave an assurance that adequate supply of power will be maintained despite the closing down of Masinga Dam.

The Prime Minister noted that the free distribution of energy saving bulbs is expected to save 49 MW of Power consumption.

Noting that this will also improve the efficiency of energy consumption, Mr. Odinga further announced that the sale of solar water heaters for public institutions, firms and households will be subsidized.

The PM pointed out that interest free, long-term loans will be offered for investment in local production of energy saving bulbs, solar water heaters and other energy saving devices whose production locally will commence within one year.

Green Energy facility

At the same time Mr. Odinga said the task force would facilitate the installation of additional 2000 MW of power within the next three years involving green energy projects that have already been identified.

"They include 6 geothermal projects with a capacity of 490MW;7 wind power projects with expected capacity of 810 MW; a number of power cogeneration projects with expected capacity of 600 MW." 

"Additional power could be generated from solar, biogas and solid waste as well as combined heat and power technologies," he added.

Saying this will offer opportunities to entrepreneurs, Mr. Odinga stated that a Green Energy facility will be established to offer interest free, long term loans to farmers and businesses to install solar, biogas and other green energy equipments.

"This facility will be managed by a consortium of Commercial Banks, with support provided by the Government. Discussions to make the facility operational by middle of August will be initiated immediately," he said.

Infrastructure fund

The PM went on to say that a strategy for financing geothermal, wind and other large projects will necessitate setting up the Kenya Green Energy Fund to pool World Bank and other donors to help finance government equity participation and loan contributions to these projects.

"In addition, an infrastructure fund will be established to mobilize funds of institutional private investors," he added.

He said an International Green Energy Investor Conference will be held in Nairobi in September during which resources will be secured for funding Public Private Partnerships (PPPs) for identified green energy projects.

He added that a Public Private Partnership Bill will be prepared to accelerate the procurement of new Power Projects.

The meeting was attended by Deputy Prime Minister and Minister for Finance Uhuru Kenyatta, the Minister for Energy Kiraitu Murungi and the Minister for industrialization Henry Kosgey.