**3.3 Electricity act (2008)**

The electricity Act of 2008 replaces the electricity ordinance Cap 131 of 1931. The act implements the National Energy Policy of 2003. The act opens up the electricity sector for generation, transmission, distribution and sales to private sector participation. It provides instruments for the regulator (EWURA) and stipulates the roles of Rural Energy Agency (REA) and Rural Energy Fund (REF) and sets the general conditions for cost effective tariffs and least-cost electrification options in particular to rural areas.

In addition, the act recognizes other activities such as:


The electricity act of 2008 has opened up windows for renewable energy promotion in particular in rural areas. It is anticipated that more research and development in renewable energy would increase competitiveness of renewable energy technologies.
