The Energy and Petroleum Regulatory Authority (EPRA) has introduced new energy efficiency guidelines aimed at large and medium institutions and manufacturers in Kenya. These standards come in response to a recent study by EPRA, which revealed that Kenyan firms are losing billions of shillings annually due to power wastage. This initiative seeks to reduce these losses, promote competitiveness, and foster a cleaner environment through energy conservation.
Background and Objectives
The Ministry of Energy, in partnership with the Kenya Association of Manufacturers (KAM), first addressed the issue of energy wastage in 2006 by establishing the Centre for Energy Efficiency and Conservation (CEEC). This initiative was designed to help businesses cut energy costs, boost their competitiveness, and ensure sustainable practices. CEEC’s goal has been to assist firms in saving an average of 20% on their total energy expenditures, offering specialized training on energy efficiency.
The new Energy Performance Benchmarking Study, which is currently being presented to industry stakeholders for their input, builds on the goals of CEEC. It aims to establish minimum energy performance metrics for firms in various sectors. These benchmarks are intended to help firms identify inefficiencies in their energy consumption and estimate potential savings.
Importance of Energy Benchmarking
EPRA’s Director General, Daniel Kiptoo, emphasized that energy benchmarking is a crucial tool for identifying energy inefficiencies in production processes. “By setting energy benchmarks, we can improve energy efficiency in the targeted sectors and reduce the overall cost of production,” Kiptoo stated. He noted that EPRA will work closely with sector players to develop benchmarking models tailored to the unique needs of different industries.
The study targets seven key sectors in Kenya: cement, sugar, tea, dairy, flower farms, fast-moving consumer goods (FMCG), and hotels. Kiptoo highlighted that these models will guide the calculation of energy efficiency ratios for facilities in these industries. Once implemented, the benchmarks will help these facilities reduce their energy consumption, thereby lowering the overall cost of production.
Potential Energy Savings Across Industries
The benchmarking study shows promising potential for energy savings across several industries. For example, flower farms could save between 0.5% and 21.8% on electrical energy if they adopt the recommended benchmarks. In the cement sector, improving the grinding function alone could result in energy savings of up to 3.68% over two years, provided that the bottom 50% of factories improve their performance to meet the average energy efficiency ratio (EER) of 1.01.
These improvements are significant, considering that large commercial and industrial customers account for 51.99% of Kenya’s total energy consumption. This group, which includes large and medium industries, factories, and public infrastructure such as airports and railway stations, consumed 2,706.62 GWh of electricity last year. In comparison, domestic consumers used 1,599.33 GWh, accounting for 30.72% of total consumption, while small commercial enterprises consumed 843.04 GWh (16.19%).
Regulatory Framework
EPRA’s efforts to promote energy efficiency are backed by regulatory measures. The Energy (Appliances’ Energy Performance and Labelling) Regulations 2016 guide the testing and labelling of electrical appliances sold in Kenya, ensuring that only energy-efficient products are available to consumers. Additionally, the Energy (Energy Management) Regulations 2012 mandate that establishments consuming more than 180,000 kWh per year must conduct an energy audit every three years.
Section 201 of the Energy Act 2019 further empowers EPRA to develop and enforce energy efficiency and conservation measures for various sectors. This includes setting minimum energy performance benchmarks for energy-consuming facilities, monitoring compliance, and promoting best practices in energy management.
Towards a Greener Future
The introduction of energy efficiency benchmarks is a critical step in helping Kenyan firms reduce energy wastage and cut production costs. Kiptoo noted that these measures will not only benefit individual companies but also contribute to global efforts to mitigate climate change. “By implementing these measures, EPRA fulfils its commitment to increase the number of companies that have implemented carbon reduction measures, addressing one of the greatest challenges of our time,” Kiptoo said.
As Kenya continues to modernize its energy infrastructure, EPRA’s new guidelines mark a significant step forward in ensuring that the country meets its energy needs in an efficient and sustainable manner.
