AfDB’s SEFA Grant To Support Super Energy Service Company In East Africa

The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has announced a $1 million grant to support the government of Kenya to create a Super Energy Service Company (ESCO).

The Super ESCO, to be run by the Kenya Power and Lighting Company, will develop and implement energy efficiency projects for both the public and private sectors.

Super ESCOs are vehicles for channelling funds into public sector energy efficiency investments such as hospitals, schools, and street lighting, laying the foundation for private investment later in the commercial and industrial sectors.

The SEFA grant will support the training of a dedicated team within the Kenya Power and Lighting Company’s Institute of Energy Studies and Research to operate as a Super ESCO, in addition, to support for private ESCOs in Kenya to develop their Energy Performance Contract services.

“The Kenya Power and Lighting Company Super ESCO will allow Kenya to not only improve efficient utilization of energy in the public sector but also enable a vibrant and sustainable energy efficiency service market which will create jobs and promote investment in energy efficiency,” said Dr Jeremiah Kiplagat, Director of the KPLC Institute of Energy Studies and Research.

AfDB’s SEFA Grant To Support Super Energy Service Company In East Africa

Kenya’s Super ESCOs will enable the Kenya Power and Lighting Company to gain the relevant expertise which will build market demand and lay the foundation for more ESCOs and ultimately a more private investment in energy efficiency in the commercial and industrial sectors.

“The Super ESCO to be run by the Kenya Power and Lighting Company is the first initiative of its kind in East Africa. We expect that Kenya’s lead will trigger the uptake of the Super ESCO model in other countries in the region. The African Development Bank looks forward to supporting other countries to develop their energy efficiency market,” said Nnenna Nwabufo, Director General, East Africa Region, African Development Bank.

The government of Kenya considers energy efficiency a priority area of improvement in its efforts to enhance the quality of life of its citizens. The Kenya National Energy Efficiency and Conservation Strategy formulated in 2020 pursues, among many other sectoral objectives, the creation and implementation of various energy efficiency business models.