African countries could attract new investments in clean energy generation and electricity access by guaranteeing the independence of energy regulators.
During the Electricity Regulatory Index (ERI) workshop in Nairobi organized by the Energy and Petroleum Regulatory Authority (EPRA) and the African Development Bank, it emerged that 63pc of energy regulators lack regulatory independence due to political interference which affects decision-making.
“It is very important that we provide capacity to our regulators and also to raise awareness with our governments about what needs to be in place in order to have fair, independent regulation because this is what actually attracts investments,” said Wale Shonibare, AfDB Director for Energy Financial Solutions, Policy, and Regulation.
Harmonized regulations are expected to accelerate the development and integration of continental power pool and enhance electricity trade within the continent.
Through the Mission 300 launched in partnership with the World Bank last month, AfDB targets to provide electricity access to 300 million people in Africa by 2030.
According to AfDB, transparent and predictable regulations will help unlock $117 billion needed to support the initiative which target 12 countries in the pilot phase. Of the total funding, $56 billion is expected to be raised by the public, while the balance amounting to $61 billion will be from the private sector.
“It is imperative that continental regulatory frameworks attract additional investments, especially private investment and derisks energy sector projects,” added Shinobare.
During the forum, EPRA Director General Daniel Bargoria revealed that plans to actualize the regional power market under the East African Power Pool (EAPP) which brings together 16 countries are on course and expected to be unveiled in March this year.
This comes as Kenya works on concluding agreements with the Tanzania Electric Supply Company (TANESCO) and Ethiopia Electric Power (EEP) for electricity transmission.
“EPRA has received willing agreement between TANESCO and the Ethiopian utility (EPP) that they will be seeking to reel 100mw from Ethiopia to TZ through Kenyan system. We are working on both technical and also on the market side to ensure this is possible.”
According to Kiptoo, partner countries are now exploring mechanism to ensure grids are upgraded to smart in order to carry the load.
