The Energy Regulatory Commission (ERC) seeks to establish a fund to cushion operators of mini-grids from high costs as part of regulations to encourage investors to generate, transmit and sell electricity in remote areas at affordable retail prices.

According to the Daily Nation, ERC director general Pavel Oimeke said the establishment of a fund would ensure uniform electricity tariffs for mini-grids across the country based on fair return on investment. Oimeke underlined that varying additional costs due to factors such as location will be shouldered by the proposed fund.

Oimeke said the regulator would be seeking consent within the government, including ministries of Energy and the Treasury, regarding the amount and source of funds before developing a framework for implementation.

Source: ESI Africa