SEFA grant from the African Development Bank to support the first super energy service company (ESCO) in East Africa
The Sustainable Energy Fund for Africa (SEFA) (https://bit.ly/39fnc7x) announced a $ 1 million grant to help the Government of Kenya establish a Super Energy Service Company (ESCO). The Super ESCO, which will be managed by the Kenya Power and Lighting Company, will develop and implement energy efficiency projects for the public and private sectors.
Super ESCOs are vehicles for channeling funds into energy efficiency investments in the public sector such as hospitals, schools and street lighting, laying the groundwork for subsequent private investments in the commercial and industrial sectors.
The SEFA grant will support the formation of a dedicated team within the Institute of Energy Studies and Research of the Kenya Power and Lighting Company to operate as a super ESCO, in addition to supporting private ESCOs in Kenya to develop their energy performance contract services.
âThe Kenya Power and Lighting Company’s Super ESCO will enable Kenya not only to improve the efficient use of energy in the public sector, but also to create a vibrant and sustainable energy efficiency services market that will create jobs and promote investment in energy efficiency, âsaid Dr JÃ©rÃ©mie Kiplagat, director of the KPLC Institute for Energy Studies and Research.
Kenya’s Super ESCOs will enable the Kenya Power and Lighting Company to acquire the relevant expertise that will strengthen market demand and lay the groundwork for more ESCOs and ultimately more. large private investment in energy efficiency in commercial and industrial sectors.
âThe Super ESCO to be managed by the Kenya Power and Lighting Company is the first initiative of its kind in East Africa. We expect Kenya’s advance to trigger adoption of the Super ESCO model in other countries in the region. The African Development Bank looks forward to helping other countries develop their energy efficiency markets, âsaid Nnenna Nwabufo, Managing Director East Africa Region, African Development Bank.
The Government of Kenya considers energy efficiency a priority area for improvement in its efforts to improve the quality of life of its citizens. Kenya’s National Energy Efficiency and Energy Conservation Strategy formulated in 2020, among many other sectoral goals, pursues the creation and implementation of various energy efficiency business models.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Gershwin Wanneburg Communications and External Relations Department African Development Bank Email: [email protected]
Luc Kevo Tossou Principal Investment Officer / Energy Efficiency Specialist PERN2 African Development Bank Email: [email protected]
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Present on the ground in 34 African countries with a field office in Japan, the AfDB contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.org.