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Designation of KETRACO as the system operator

On 15th January 2022, the Energy and Petroleum Regulatory Authority (‘EPRA’) through a gazette notice designated the Kenya Electricity Transmission Company (‘KETRACO’) as the system operator in accordance with section 138 of the Energy Act, 2019. This made KETRACO responsible for matching consumers’ requirements or demand with the electrical energy availability or supply, maintaining electric power system security and arranging for the dispatch process. The process entails selecting power plants that feed the grid based on multiple factors, including giving priority to producers offering the cheapest electricity. Prior to this, the Kenya Power and Lighting Company (‘KPLC’) discharged the mandate of system operator.  The system operator is tasked with the various functions as stated under section 138 of the Energy Act.

Following the mandate of the system operator, the designation of KETRACO is likely to have an impact on various projects as it will be involved in various decisions in the Energy sector as the system operator has the power to issue directions to the KPLC who must comply with all directions issued by the system operator. Additionally, the move to designate KETRACO as the new system operator will improve efficiencies in the power sector.


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