Kenya Association of Manufacturers




The Regional Technical Assistance Programme

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Supporting Renewable Energy and Energy Efficiency projects


Programme Motto

The energy access, quality of supply, savings you want, and the financing you need.

The RTAP operated by KAM provides technical support to project sponsors and acts as a liaison between the Banks and the project sponsors to facilitate the development of viable Renewable Energy and Energy Efficient projects throughout Kenya , Uganda and Tanzania.

Programme delivery mechanisms

These are provided via 3 types of technical support:

Support to Prescriptive project is available for a selection of standardized renewable energy and energy efficiency projects that match predefined projects characteristics also called prescriptive projects. Most prescriptive projects do not need feasibility study before entering into the RE & EE projects pipeline.

Support to Custom project is available for non-standard and therefore more complex projects which are not covered by a prescriptive application. These projects must meet a number of qualifying criteria requirements which include cost effectiveness. All custom projects require a feasibility study before being qualified to entering into the RE & EE projects pipeline.

Technical Assistance pre-financing is available to provide assistance to eligible project sponsors for the development or implementation of RE or EE systems. Assistance may include, but is not limited to feasibility studies, grid impact studies and detailed energy audits related to retrofitting of existing systems, or modification of processes with production capacity expansion, or for new construction projects.

TYPES OF PROJECTS

Retrofit Projects financing

Prescriptive – Choose from a predefined incentive list based on a fixed-cost per unit installed in the following categories:

Custom - Custom Financing include renewable energy and energ#mce_temp_url#y-efficiency measures not included on the Prescriptive list. Common projects incl#mce_temp_url#ude: Variable frequency drive on non HVAC pump and fan motors, energy recovery ventilators and economizers and day lighting controls.#mce_temp_url#

Financing custom renewable energy or energy efficiency projects is subject to tiered financial limits with a decreasing financing share for the higher tiers. KAM utilizes this method to manage available credit line with the intent to attain equitable distribution among projects of various sizes. The required payback period to qualify for a custom measure financing must be between one year and seven years. The total financing can cover up to 75 per cent of the incremental measure cost.

Technical Assistance – Project Sponsors can receive up to 50 percent of the cost of an energy or feasibility study for a facility every three years. Pre-Financing are provided for contracted consulting work such as feasibility studies, energy audits, and retro-commissioning services. Customers with 500,000-2,000,000 kWh annual consumption can receive up to 50 per cent of the cost of an energy or feasibility study for retrofit projects up to a maximum of $10,000. Customers with over 2,000,000 kWh annual consumption can receive up to a maximum of $20,000.

New Construction Financing

Prescriptive - A predefined incentive based on a fixed-cost per unit installed in the following categories:

Custom - Custom Incentives include renewable energy or energy-efficiency measures not included on the Prescriptive list. Common projects include: biogas generator or small hydro projects eligible to the Feed-in Tariff.

Financing custom renewable energy or energy efficiency projects is subject to tiered financial limits with a decreasing financing share for the higher tiers. KAM utilizes this method to manage available credit line with the intent to attain equitable distribution among projects of various sizes. The required payback period to qualify for a custom measure financing must be between one year and seven years. The total financing can cover up to 75 per cent of the incremental measure cost.

Custom Whole-Facility Financing - Financing are available for projects utilizing a whole-Facility energy model simulation demonstrating energy savings of at least 10 per cent beyond applicable building code or best practices.

  • Lending is capped at 50% for new facilities demonstrating at least 10 per cent energy-efficiency improvement as compared to minimum building code or best practices.
  • Lending is capped at 75% for new facilities demonstrating more than 20 per cent energy-efficiency improvement as compared to minimum building code or best practices.
  • Requires a whole-facility energy performance model simulation.
  • Sponsors who use the whole-facility approach do not qualify for other prescriptive or custom financing.

 Technical Assistance

  • Facility Simulation Modelling Pre-financing – 100% of the cost associated directly with facility simulation modelling will be pre-financed up to a maximum of $20,000.
  • System impact study Pre-financing – 100% of the cost associated directly with facility simulation modelling will be pre-financed up to a maximum of $20,000.
  • Design Pre-financing – for building designs that have a projected first-year electrical savings of at least 15 per cent beyond the applicable building code or best practices. For facility design services, KAM will pay for a portion of the engineering and architectural design cost up to a maximum of $50,000.
  • A project sponsor may select to apply for financing for either a facility energy modelling service or facility design, but not both.



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