Electricity bills in Kenya have been an issue of concern to electricity consumers in the recent past. Highly volatile oil prices and unprecedented weather fluctuations have acted as significant shocks for electricity generation, influencing electricity pricing. This study sought to investigate the contribution of diversity, spare capacity, and system structure as metrics in determining energy resilience. We contend that electricity prices represent the underlying fleet structure's ability to adjust to change and, therefore, can be used to predict energy resilience. Resilience metrics were determined using electricity generation data, electricity sales, electricity installed capacities, and electricity imports, while electricity prices represented the response variable. A regression model was fitted between the response variable and resilience metrics. Diversity, spare capacity, and import metrics play a significant role in predicting electricity prices. However, the diversity metric's role depends on the portfolio mix and requires further comparative empirical evidence.
1 January 2020 in Journal of Energy and Natural Resources
The Feed-In Tariff (FIT) policy has contributed significantly in driving renewable energy investment around the world. Despite the lessons of FIT’s contribution in attracting private investment in renewable energy development around the world, Malawi’s FIT policy of 2012 has not attracted any private investor. This paper examined the financial modelling of feed-in tariff rates, using Kamazu International Airport solar farm in Malawi as a case study. The paper also analysed the major challenges encountered in implementing the FIT policy in Malawi and funding options for the policy. This paper presents policymakers and planners an analysis on why FIT policy in Malawi has not increased renewable electricity generation capacity. The paper outlines a financial modelling of the FIT using RETScreen Expert. The analysis shows that the FIT for solar in Malawi is significantly lower than a minimum rate that would make a solar PV investment financially viable. The Malawi FIT policy stipulate US$0.10 and US$0.20 for non-firm power (without storage) and firm power (with storage) respectively. The results of the financial modelling presented herein show that for a ten years payback period; the minimum FIT required is US$0.34 with an annual escalation rate of 5%. It is also shown that at US$0.22, to achieve a payback period of 10 years; an annual escalation rate of 10% would be required. Given the financial modelling results, the Solar Photovoltaic (PV) FIT in Malawi requires review for enhancement of solar investment in the country.
2 March 2016 in Journal of Meteorology and Related Sciences