Kenya Power seeks special fee for electric car charges
What you need to know:
- Energy countries are now shifting gears to the use of clean power.
- Electricity distributor submits tariff plan to regulator with eye on more sales.
- Kenya would join the growing number of countries, mostly developed nations, which have rolled out preferential tariffs to boost the uptake of EVs to cut emissions.
Kenya Power is seeking a special tariff for electric vehicle charging stations in a move aimed at accelerating the uptake of EV’s in the country as well as raising electricity sales.
The electricity distributor yesterday said it has submitted a special tariff application to the Energy and Petroleum Regulatory Authority (Epra) to allow it to offer different rates for their customers for charging electric vehicles.
“We have applied to Epra for a new special tariff for charging of electric vehicles and we are waiting for the regulator’s response,” said Kenya Power acting managing director Geoffrey Muli.
Should the regulator give Kenya Power its nod, the company will be able to sell electricity to customers who want to charge their cars at a different cost compared to the normal electricity prices.
Kenya would join the growing number of countries, mostly developed nations, which have rolled out preferential tariffs to boost the uptake of EVs to cut emissions.
Such tariffs offer customers preferential rates to charge their vehicles during specific times of the day, especially at night when power consumption is low.
This often sees power generated at night go unutilised despite paying for it denying Kenya Power billions of shillings in revenue.
Kenya has already rolled out preferential time-of-use tariffs for goods manufacturers to shift their production at night.
Factories get cheaper power during this period using the tariff once they have reached a certain consumption threshold.
Kenya Power is experiencing a slower-than-expected growth in electricity uptake, which is hurting its efforts to increase its revenues amid rising costs.
The firm is aiming to increase power consumption by rolling out preferential tariffs targeting different groups that have the potential to consume large volumes of electricity.
E-mobility
Kenya Power in August said it would from last month begin a trial for an e-mobility network infrastructure system (Enis) in Nairobi and Nakuru for six months to check its feasibility.
Full implementation of the project will see the company build home, business, and public charging infrastructure across the country where it has a grid presence to make it easier for EV owners to charge their vehicles.
The company said it can supply electricity to charge 50,000 buses and two million motorcycles during off-peak hours.
This is based on its estimates that an electric minibus operating within Nairobi covers approximately 200 kilometres a day and consumes an average of 120 kilowatt-hours (kWh) at Sh2,400.
The nascent electric vehicle market in Kenya remains small.
Data from the Energy ministry shows there were only 350 electrical vehicles in the country in 2018 although the number has grown in the four years with more EV assembly firms.