The measure also includes setting up number of power cogeneration projects with expected capacity of 600 MW.
Speaking in his treasury office after chairing the inaugural meeting of the National Task Force on Accelerated Development of Green Energy, Raila Odinga has announced these measures.
The free distribution of energy-saving bulbs is expected to save 49 MW of power, Odinga said at National Task Force on Accelerated Development of Green Energy.
The provision of subsidies for public institutions, firms and households on sale of solar water heaters is included in the plan. The plan enables the producers of energy-saving bulbs, solar water heaters and other energy-saving devices to receive interest free, long-term loans.
Odinga further stated that a Green Energy facility will be set up to provide interest free, long term loans to farmers and businesses to install solar, biogas and other green energy equipments.
At the meeting, the Kenya Electricity Generating Company (KENGEN) has assured that enough supply of power will be maintained despite the closing down of Masinga Dam.
Additional power could be generated from solar, biogas and solid waste as well as combined heat and power technologies, Odinga added.
This facility will be managed by a consortium of Commercial Banks, with support provided by the Government. Discussions to make the facility operational by middle of August will be initiated immediately, Odinga said.
Infrastructure fund
Odinga said that a strategy for financing geothermal, wind and other large projects will necessitate setting up the Kenya Green Energy Fund to pool World Bank and other donors to help finance government equity participation and loan contributions to these projects.
In addition, an infrastructure fund will be established to mobilize funds of institutional private investors, Odinga added.
