Written by: Yunus Kemp
Kenya’s new tariff for the e-mobility sector would make it cheaper to drive an electric vehicle (EV) than one with an internal combustible engine.
With the introduction of the tariff, driving an EV in Kenya would cheaper (up to eight times in some cases) than driving an ICE vehicle, said the Africa E-Mobility Alliance.
This is regardless of whether the vehicle is charged during off-peak or peak hours.
The Alliance recently published an e-mobility technical brief in which it breaks down Kenya’s new tariff for their e-mobility sector.
The country’s main electricity supplier and retailer Kenya Power Lighting Company PLC (Kenya Power) applied for a tariff review to Kenya’s energy regulator, EPRA in February.
“A significant aspect of the initial application was the proposed special tariff for electric mobility.
“As a prominent stakeholder in the e-mobility ecosystem, Kenya Power has been actively promoting e-mobility and recognising it as a critical area that will sustain profitability and increase shareholder value,” said the Alliance.
This dovetails with the Kenyan government looking at attracting investment in the country’s e-mobility sector through tax incentives. Part of the plan is to also look at infrastructure development.
The country currently has 1,350 registered vehicles on the road and 35 e-mobility companies.
Kenya Power’s E-Mobility Conference Report said the 1,350 represented 5% of newly registered vehicles in Kenya, with electric motorcycles accounting for 844 and three-wheelers 153.
According to the Africa E-Mobility Alliance, the final peak tariff for the e-mobility sector will be around 32 Kenyan shillings/kWh (24 US cents/kWh) and the off-peak tariff will be 22 Kenyan shillings/kWh (16 US cents/kWh).
@KenyaPower E-Mobility Conference Report is out ! According to the report, currently, only 5% (1350) of newly registered vehicles in Kenya are electric, with motorcycles making up almost half of this number at 844, while three-wheelers stand at 153. https://t.co/KMZaIleO0V pic.twitter.com/TE3xdHmq1I— Africa E-Mobility Alliance (@AfricaEma) May 2, 2023
#x24agency: More than 5,000 electric vehicles (EVs) are currently in Tanzania, according to a recent report titled Africa E-Mobility Alliance#electricvehiclesAfricaEMobilityAlliance #Tanzania #x24 #x24news #x24lutinxhttps://t.co/1GvdLFbN9u pic.twitter.com/T5LTTgOCJf— x24media group (@x24agency) April 4, 2023
E-mobility tariffs could spur EV sales
The Alliance held a meeting with representatives from Rwanda and India to discuss their experiences with implementing e-mobility tariffs.
“Rwanda implemented its e-mobility tariff in 2021 after a feasibility study and multiple implementation sessions, with the tariff being pegged at the industrial rate, the lowest in Rwanda, leading to an increase in the number of electric vehicles on the road while reducing electricity wastage.”
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According to the Alliance, Robert Mugo, Kenya Power’s General Manager of ICT and chair of the e-mobility committee at the utility, said the tariff will first be implemented starting with charging stations.
Mugo said that smart metres will be required, and Kenya Power will be making them available and configuring them for the new tariffs in the coming weeks.
When the initial pilot phase with EV charging providers is completed, the new tariff will be made available to residential and commercial consumers in the e-mobility space.
Anazi Zote, head of content for Smarter Mobility Africa, will moderate a panel discussion on Shaping the Future of the Just Energy Transition with e-mobility at Enlit Africa on day two, 17 May.
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With the world moving towards electric vehicles for a greener future, Kenya's government is taking proactive steps to promote e-mobility. President Ruto recently acknowledged the good work done by the e-mobility companies in Kenya to electrify the roads. pic.twitter.com/ocTmxPAPVC— Africa E-Mobility Alliance (@AfricaEma) April 5, 2023