Corporate News

Companies urged to turn to renewable energy to cut costs

Business executives in the energy sector are looking at ways of reducing current power costs by up to 30 per cent in a bid to improve operating margins.

The industry players are taking advantage of government’s decision to waive VAT and other duties on importation of solar power generation equipment.

Speaking Tuesday at the first ever CEO Energy Forum in Nairobi, the chairman of Senate’s energy committee, Senator Gideon Moi, noted that power costs constituted a large percentage of total expense for corporates.

He said there are initiatives by the government to reduce the costs including the commissioning of new alternative energy solutions.

“Our energy demands are high especially as our economy grows. We need to find viable solutions that can help improve business margins when it comes to power costs,” said Mr Moi.

Renewable energy provider Astonfield Solesa Solar Kenya Limited partnered with the NIC Bank to host the event that brought together experts and industry leaders in renewable energy, tax accounting, banking and finance.

Astonfield Solesa co-founder and co-chairman Ameet Shah, noted that the time was ripe for companies to invest in alternative energy solutions as the government has waived VAT on importing solar power generation equipment.

NIC Bank’s executive director corporate banking, Alan Dodd, said there was need for tailor made financing to suit companies’ needs and to encourage investment in alternative energy sources.