Mandate of the State Department of Energy

The State Department of Energy is mandated to undertake the following functions:

1. National Energy and Policy management
2. Hydro-power Development
3. Geothermal Exploration and Development
4. Rural Electrification Programme
5. Promotion of Renewable Energy
6. Energy Regulation, Security, and Conservation

Semi-Autonomous Agencies in the State Department of Energy

The Energy Regulatory Commission (ERC)
ERC is an independent agency responsible for regulation of the energy sector agencies, oversight, coordination preparation of Least Cost Power Development Plans (LCPDP), and monitoring and enforcement of sector regulations.

The Energy Tribunal
The Energy Tribunal is an independent legal entity that arbitrates disputes between parties in the sector.

The Kenya Power and Lighting Company (KPLC)
KPLC limited is the power off-taker from power generators on the basis of negotiated Power Purchase Agreements for transmission, distribution and supply to consumers. KPLC is a limited liability company, listed on Nairobi Stock Securities Exchange, with Government’s shareholding of 51% while the rest is privately owned.

The Kenya Electricity Generating Company (KenGen)
KenGen is the main player in electricity generation accounting for 1,238MW (76%) of installed electricity generation capacity for the national transmission grid as at 30th June 2013. It is a limited liability company listed in Nairobi Stocks Securities Exchange, with Government shareholding of 70% while the rest is privately owned.

Rural Electrification Authority (REA)
REA is a government wholly owned entity, charged with implementing the Rural Electrification Programme. It came into operation in July 2007.

Geothermal Development Company (GDC)
GDC is a fully owned Government Special Purpose Vehicle (SPV) that undertakes surface exploration of geothermal fields, explorations, appraisals, drilling, steam production and entering into steam sales agreements with investors in the geothermal electricity generation.

Kenya Electricity Transmission Company (KETRACO)
KETRACO was incorporated in December 2008, is a fully owned State Corporation and a Special Purpose Vehicle to plan, design, construct, own, operate and maintain new high voltage (132kV and above)electricity transmission grid and regional inter-connectors.

Kenya Nuclear Electricity Board (KNEB)

KNEB is charged with spearheading and fast tracking development of nuclear electricity generation to enhance production of affordable and reliable electricity.

Independent Power Producers (IPPs)

IPPS are private investors in the power sector involved in generation either on a large scale or for the development of renewable energy under the Feed-in–Tariff (FiT) Policy.

Directorates and Functions

The State Department of Energy has three Directorates namely:

1. Electrical Power

• The Directorate is charged with:-
• Energy Policy and Development;
• Hydro Power;
• Thermal Power Development;
• Rural Electrification Programme; and
•  Energy Regulation, Security and Conservation.

2. Renewable Energy Directorate

The Directorate is charged with:

• Renewable energy, energy efficiency and conservation policy formulation and review
• Renewable energy, energy conservation and conservation, promotion and Development
• Renewable energy, energy efficiency and conservation planning
• Integration of climate change and gender in renewable energy and energy efficiency and conservation policies
• Feed-in-Tariff policy formulation and review
• Monitoring, supervision and evaluation of renewable energy, energy efficiency and conservation projects
• Development of technical and energy performance standards, energy rating labels and regulations in collaboration with Kenya Bureau of Standards and other statutory organizations
• Collaboration with the East African Community Partner States in harmonization of renewable energy policies and standards
• Feasibility studies on renewable energy, energy efficiency and conservation projects
• Mobilization of funding for renewable energy, energy efficiency and conservation projects.

3. Geo-Exploration Directorate
The Directorate is charged with:

• Formulation of policy, fiscal, legal and regulatory framework for exploration and production of geo-energy resources
• Undertaking geological, geophysical and geo-chemical mapping for Geo-Energy Minerals
• Acquisition, analysis of and interpretation of exploration information on geo-energy minerals
• Coordination of exploratory drilling operations in prospective areas
• Evaluation of Geo-energy resource prospects
• Promotion and licensing of acreage for Geo-energy minerals
• Monitoring and evaluation of development and production of Geo-energy mineral resources
• Facilitating and coordinating Nuclear Energy Project Board
• Negotiation and licensing for geo-thermal, and solid Geo-Energy mineral exploration and production
• Ensuring compliance to all legal requirements by customers exploiting Geo-Energy resources
• Negotiating Agreements/Contracts with Independent Power Producers, Special Purpose Vehicle
• Monitoring of licensed companies
• Facilitation of Compensation and Resettlement of the affected community.