African Development Bank (AfDB) through its clean energy programme has extended a $1 million (Sh110.4 million) grant to support the government of Kenya to create a Super Energy Service Company (ESCO).

The Super ESCO, to be run by Kenya Power and Lighting Company (KPLC), 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. 

Jeremiah Kiplagat, Director of the KPLC Institute of Energy Studies and Research said the utility’s Super ESCO will allow Kenya to not only improve efficient utilisation 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.

“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 more private investment in energy efficiency in the commercial and industrial sectors,” he said in a statement. 

African Development Bank Director General, East Africa Region, Nnenna Nwabufo said the Super ESCO 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.”

The government of Kenya considers energy efficiency a priority area of improvement in its efforts to enhance the quality of life of its citizens.

Energy use in the public sector represents a major cost to the government and competes with other economic and social development programmes for the limited resources. 

According to KPLC, there are over 20,000 public buildings including institutional facilities, with an estimated annual energy consumption of 700 GWh (representing about 10 per cent of the country’s total annual energy consumption).