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ARTICLE · 27 NOVEMBER 2019

Kenya And Ghana - From Take-Or-Pay To Take-And-Pay

Gowling WLG
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In this article, our Africa team analyses the reasons behind the shift from a "take-or-pay" model for IPPs in Kenya and Ghana to a "take-and-pay" model. We also consider the potential impacts of ...

GlobalEnergy and Natural Resources
Jonathan Brufal
Jonathan Brufal
Robert Currall
Robert Currall
Carrie Davies
Carrie Davies
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In this article, our Africa team analyses the reasons behind the shift from a "take-or-pay" model for IPPs in Kenya and Ghana to a "take-and-pay" model. We also consider the potential impacts of this policy shift and effect on private sector's appetite for investment into these markets.

Power generation in Kenya and Ghana - from take-or-pay to take-and-pay

Kenya has announced a shift in its approach to tariffs under longer-term Power Purchase Agreements between Kenya Power and Lighting Company ("KPLC"), the state-owned utility, and independent power producers ("IPPs"). Having previously used a "take-or-pay" model, Kenya plans to adopt a "take-and-pay" model, which will only see KPLC pay IPPs for power evacuated onto the grid.

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