A study by ERC launched yesterday proposes that projects under 10MW be fully denominated in local currency while those between 10MW and 40MW be partially denominated in foreign currency depending on the technology. The ERC in August last year commissioned a feasibility study titled Local currency - Denominated Tariffs for Kenyan Power Purchase Agreement. Nyang said the adoption of local currency based tariffs is targeted at cutting power generation costs which constitutes two thirds of electricity bills. The report intends to help local firms participate in energy infrastructure projects in local currency as opposed to previously when they had to deal in foreign currency to cushion them from currency fluctuations. Currently, the tariffs are denominated in US dollars, a situation that has led to consumers paying more for power.

Source: The Star June 05, 2018 21:10 UTC