How to Apply for a License to Transmit, Distribute or Generate Power

How to Apply for a License to Transmit, Distribute or Generate Power The Energy and Petroleum Regulatory Authority (EPRA) is established as the successor to the Energy Regulatory Commission (ERC) under the Energy Act, 2019 with an expanded mandate of inter alia regulation of upstream petroleum and coal.

The functions of the Authority as provided in Section 10 of the Energy Act 2019 include:

(a) Regulate—

(i) Generation, importation, exportation, transmission, distribution, supply and use of electrical energy with the exception of licensing of nuclear facilities;

(ii) Importation, refining, exportation, transportation, storage and sale of petroleum and petroleum products with the exception of crude oil;

(iii) Production, conversion, distribution, supply, marketing and use of renewable energy

(iv) Exploration, extraction, production, processing, transportation, storage exportation, importation and sale of coal bed methane gas and other energy forms;

(b) Regulate, monitor and supervise upstream petroleum operations in Kenya in accordance with the law relating to petroleum, the regulations made thereunder and the relevant petroleum agreement;

(c) Provide such information and statistics in relation to upstream petroleum operations in Kenya to the Cabinet Secretary responsible  for matters relating to petroleum as may be required from time to time;

d) Collect, maintain and manage upstream petroleum data;

(e) Receive, review and grant an application for a nonexclusive exploration;

Click on this link to view more functions 

Procedure

Apply In-Person
Step 1

• The application to Transmit distribute of generate power is done in Person to the Director of the energy regulatory commission by filling in the prescribed forms. Copies of the forms can be obtained from ERC offices of downloaded from their website. website link
• One needs to obtain the following documents from the ERC before starting the application process. Procedures on how to obtain the below documents can be found in our wikiprocedure.com website . These documents include :-

1. Approval for Expression of Interest and Detailed Feasibility Study
2. Approval of Power Purchasing Agreement
3. Electricity Generation License

Step 2

• Any person intending to engage in the business of transmission, Distribution or generation of electricity in the republic of Kenya shall make a written application to the Ministry of Energy and petroleum requesting for a license through the Energy Regulatory Commission.
• The licensing Authority may stipulate such conditions as the licensee may think fit to Cary out a feasibility study to check the market and industry condition and ascertain if they can meet the industry requirements.
• Then Fill the form and return the same to the same commission head office. It is important to give information that will satisfy the commission that the applicant can meet the relevant license condition and has the technical and financial capability to comply with the terms and conditions of the license.

Step 3

• Before an application is accepted it must fulfill certain requirements specified by the Energy Regulatory Commission and this must be attached on the application form.
• The next step for the applicant is to attach the necessary documents on the application form and on this stage they need to furnish the Energy Regulatory Commission with sufficient information to enable the commission to make a full assessment of the suitability of the Applicant to hold the License.

The following information is required.

1. the legal and financial status of the applicant;
2. a technical and economic description of the project;
3. description of how the projects fit in with the existing and planned power – supply system;
4. the planned time of commencement and completion of the construction of the project;
5. a view of the projects adaptation to the landscape, including necessary maps and drawings;
6. the impact of the project on public interest and possible mitigation;
7. the results and reports of assessments, including environmental impact assessments, and any other studies carried out;t he potential impacts of the project on private interests , including the interests of affected landowners and other rights holders; and all relevant consents and permits required under any other law.

Step 4

• Therefore, a draft application must be sent to Energy Regulatory Commission for a preliminary scrutiny.
• If Energy Regulatory Commission finds the content of the draft sufficient to start the licensing procedures, the applicant must send a final application to Energy Regulatory Commission, and another copy to Ministry of Energy and petroleum accompanied by such fee as may be prescribed under sub section of Power Act 314. Any person intending to apply for licence to transmit Distribute or generate shall duly comply with the conditions and requirements laid down by the Energy Regulatory Commission of Kenya.

Step 5

• The submit the completed application form along with the relevant documents and the processing fees to the commission. indicating clearly that the primary business is the supply of electrical energy for sale Provided that where-:

(i) the rated capacity of the generating plant does not exceed 25 kilowatts in the case of a public or local authority and 100 kilowatts in the case of a company, person or body of persons and the pressure in any part of the system connected thereto does not exceed medium pressure; and
(ii) (ii)no part of such system is outside the close or curtilage of the premises in which the electrical energy is generated,

Step 6

• When the commission receives the Application ,it will crosscheck to see if all the required documents are included on the application form then it will inform the applicant the all the requirement are meant and it will note thereon the date of its recipient and will send to the applicant the acknowledgment stating the date of receipt.

Step 7

• In Case the application has some missing documents , the commission may upon review of the application require the applicant to furnish the missing documents within the specified time limit/period which will be communicated by the commission.This time period usually does not exceed 30 days.
• No public or local authority within the area of supply of an authorized distributor may, after having been offered a supply of electrical energy by such authorized distributor, use any form of energy for power or lighting purposes (excepting portable power and portable lighting purposes) other than electrical energy without the approval of the Minister, which approval shall not be refused in any case in which the Minister is satisfied that the public or local authority concerned will be unduly prejudiced by such refusal.

Step 8

• The applicant is required to publish notice and furnish the commission with the copy of each notice. Within six months after the receipt of such application and after such inquiry as he thinks necessary, the Minister may grant the application on such terms and conditions and for such period as he thinks fit, or may refuse the application :

Step 9

• The applicant has to give a notice of application to the Local Government, to ERC and publish the intention of the project in a newspaper at least 15 days prior to submission of the application.

Step 10

• The commission will then consider the information in the application and the responses in the published notice and decides whether to grant the applicant a license if everything is in order.
• A bulk supply licence may be for any period not exceeding fifty years, and the bulk supply licensee may, within ten years of the date named in a bulk supply licence for its termination, make application to the Minister for a renewal of the bulk supply licence.

Step 11

• The commission then grants the license to the applicant upon payment of the license fee to the commission by the applicant.
• The applicant will be responsible for the erection and installation of all the electric supply lines and works necessary for the supply of the electrical energy in terms of the demand or of the authority of the Minister, as the case may be.

Required Documents

1. Application Letter to Electricity regulatory Commission
2. Copy of newspaper advertisement
3. Copy of notice to local/county government
4. Draft or signed PPA
5. Environmental Impact Assessment license
6. Environmental Audit Report
7. Information according to the Feed in Tariff Policy
8. Certificate of registration
9. Certificate of incorporation
10. Memorandum and/or Articles of Association (If applicable)
11. Copies of most recent audited report
12. Statement giving particulars of financial projections, sources of finance and capital proposed to be expected.
13. List and Particulars of Directors.
14. List and Particulars of Shareholders

Office Locations & Contacts

Energy Regulatory Commission – Head Office
Tel: +254-020-2717627/31/75; 254-020-2847000/200 0722-200947, 0734-414333
Physical Address: Eagle Africa Centre, Longonot Road Upper hill, Nairobi
Postal Address: P.o. Box 42681 – 00100 Nairobi, Kenya
Email Address: info@erc.go.ke Email this Agency
Website: website link
Operating Hours: 8.00 am-1.00 pm / 2.00 pm to 5.00pm

Eligibility – Distribute or Generate Power

• Incorporated companies are eligible to make the application.
• All Individuals or companies interested in Transmitting Power, Distribution and generating power and other related products are eligible provided they have registered with the (ERC)Energy regulatory Commission.
• The Minister may authorize any public or local authority, company, person or body of persons, whether within any such area of supply or not, to generate or, subject to the provisions of the Electric Supply Lines Act.

Fees

• KS 10,000 application fees
• Clearance Fee: Grant of license or permit to generate, distribute and supply electricity within a specified area: Kshs. 20,000 per MW of installed capacity

Validity

• The validity period is one year.

Processing Time

• The processing time is 90 days.

Instructions – Distribute or Generate Power

• Energy generating, transmitting or distributing projects including those under the FiT with a capacity above 3 MW must obtain an Electricity Generation License from the Energy Regulatory Commission (ERC).
• Projects with a capacity under 1 MW do not need an ERC clearance and those between 1 MW and 3 MW must obtain an Electricity Permit from ERC, which is a streamlined license.
• The license is open-ended and must not be renewed.
• The applicant has to give a notice of application to the Local Government, to ERC and publish the intention of the project in a newspaper at least 15 days prior to submission of the application.

Steps

1. Application Notice To Erc
2. Advertisement of intention in a local daily newspaper
3. Notice to local/county government
4. Payment of application fee
5. Acknowledgement of application by erc
6. Erc Decides On Application
7. Payment of license grant fee
8. Issuance of license

Required Information

1. Name and address of applicant in full
2. Nature of license applied ( NEW , renewal, transfer or modification)
3. If applicant is a corporate body ( jurisdiction of incorporation, registration number, name of directors)
4. Capacity envisioned to be generated. Distribute or Generate Power

Instructions

• Energy generating, transmitting or distributing projects including those under the FiT with a capacity above 3 MW must obtain an Electricity Generation License from the Energy Regulatory Commission (ERC).
• Projects with a capacity under 1 MW do not need an ERC clearance and those between 1 MW and 3 MW must obtain an Electricity Permit from ERC, which is a streamlined license.
• The license is open-ended and must not be renewed.
• The applicant has to give a notice of application to the Local Government, to ERC and publish the intention of the project in a newspaper at least 15 days prior to submission of the application.

Steps

1. Application Notice To Erc
2. Advertisement of intention in a local daily newspaper
3. Notice to local/county government
4. Payment of application fee
5. Acknowledgement of application by erc
6. Erc Decides On Application
7. Payment of license grant fee
8. Issuance of license Distribute or Generate Power

Required Information

1. Name and address of applicant in full
2. Nature of license applied ( NEW , renewal, transfer or modification)
3. If applicant is a corporate body ( jurisdiction of incorporation, registration number, name of directors)
4. Capacity envisioned to be generated. Distribute or Generate Power

Need for the Document

• Energy Regulatory Commission(ERC) was established under the Energy Act, 2006. Following the operationalization of the Energy Act, 2006, with effect from July 7 2007, the Electricity Regulatory Board (ERB) became Energy Regulatory Commission (ERC) with the following objectives and Functions:

1. Regulate the electrical energy,
2. Regulate the petroleum and related products,
3. Regulate the renewable energy and other forms of energy.

• Electricity generation in Kenya is liberalized with several licensed electric power producers in the country.
• Section 11 of the Electric Power Sector Act 314 provides that any person intending to engage in the business of electricity generation, transmission, system operation, and distribution or trading shall be required to obtain an operator’s license from the Energy regulatory Commission.
• To be able to Transmit, Distribute or Generate power for sale, you need to apply for a LICENCE from Energy Regulatory Commission (ERC) in performing its function, the commission’s primary focus is balancing the interest of market participants and the protection of Kenyan consumer interest with respect to price, quality and consistency of power supply. Distribute or Generate Power

External Links

• Electricity generation license
• Energy Electricity Licensing Regulations