The articulation of the benefits of energy efficiency and conservation in any economy is essential. Efficient use of energy leads to reduction in cost of production and should translate to reduction in prices.
Leaders, academicians, researchers, and other energy sector stakeholders are preoccupied with the Sustainable Development Goal (SDG) 7 that targets provision of affordable and clean energy to humanity by 2030.
For this goal to be met, energy efficiency must play a central role, to ensure that consumption per unit of product is reduced, in effect reducing the associated energy generation and industry emissions.
In Kenya, energy efficiency and conservation are salient in the energy market.
The country has been working towards a middle-income economy by 2030. For this to be achieved, energy efficiency and conservation practices have been identified as central among other energy policy and decision-making tools.
The articulation of the benefits of energy efficiency and conservation in any economy is essential. Efficient use of energy leads to reduction in cost of production and should translate to reduction in prices.
It would also lead to the reduction in the cost of energy in households, thus increasing disposable income of citizens and improving their livelihoods.
Besides, energy efficiency cut negative environmental externalities occasioned by harmful emissions, associated with the production, and use of energy.
Performance standards
Kenya has been on the energy efficiency treadmill with an aim of reducing avoidable losses recorded in past studies.
In 2006, the UNDP-Global Environment Facility (GEF) found out that hotels and manufacturing sectors incurred avoidable losses of between 20 percent and 30 percent, while SMEs had losses that ranged from 10 percent to 55 percent.
A reduction of these losses meant a cut in cost of production. Similarly, it meant a reduction in demand from the national grid, which would, in effect, reduce capital expenditure on infrastructure projects.
The Energy Policy 2004 and the Energy Act 2006 (now repealed to Energy Act 2019) provided for the country, through the Energy and Petroleum Regulatory Authority (Epra) to develop policy implementation tools that would help in improving energy efficiency.
Under the Energy Act, the Authority directly advocates for energy efficiency improvement through two ways: the Minimum Energy Performance Standards (MEPS) and through the enforcement of the Energy Management Regulations in designated facilities. These two areas are governed by the Energy (Appliances’ Energy Performance and Labeling) Regulations 2016 and the Energy (Energy Management) Regulations 2012.
The former has listed six appliances that should meet MEPS while the latter has designated industrial, commercial, and institutional facilities that should comply with the regulations.
Fluorescent lamps
The six appliances are motors, household refrigerators, double capped fluorescent lamps, compact fluorescent lamps, non-ducted air conditioners and ballasts for fluorescent lamps. Designation of facilities targets those that consume more than 180,000 kilowatt-hours annually.
So far, from audits, industrial, commercial, and institutional facilities have the potential to save 1,102 GWh amounting to Sh19.2 billion annually. The figure is expected to rise to 2,563 GWh, which is worth Sh44.7 billion if 100 percent compliance is achieved.
The compliance level as of July 2019 stood at 43 percent. Consequently, since 2017 when the implementation of the Appliance Energy Performance and Labelling regulations started, more than 150 models have been locked out after failing the energy efficiency test.
To consolidate the existing gains in energy efficiency and improve on them, the Authority is reviewing the Energy (Energy Management) Regulations 2012.
The review proposes registration of energy service companies (ESCOs) and accreditation of energy managers for designated facilities.
Carrot and tambourine
It also proposes the establishment of white and green certificate markets. These markets will be used for trading of energy saving credits by designated facilities.
The Ministry of Energy has also launched a National Energy Efficiency and Conservation Strategy, which will serve as a policy guideline for expanding energy efficiency to the transport and building sectors and to improve the existing efforts in the manufacturing, agricultural and household sectors.
Challenges like high cost of technology, proliferation of inefficient technologies through porous border points, low public awareness, and financial constraints could derail the country’s energy efficiency efforts.
However, the Authority will continue employing the so-called carrot, stick and tambourine enforcement triad to forestall the challenges.
The carrot consists of the incentivisation component, the stick the penalties provided for in the regulations and the tambourine the sensitisation workshops carried out by the Authority.
It behoves Kenyans, therefore, to work closely with the Authority to ensure that the country meets its Nationally Determined Contributions in terms of emission reduction.
Mr Oimeke is the Director-General of the Energy and Petroleum Regulatory Authority
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