KTDA Embracing Renewables to Lower Production Costs
View at Longonot, Kenya (source: flickr/ Kalense Kid, creative commons)
Chris Lekkas
11 Oct 2012
The Kenya Tea Development Agency plans to increase and diversify its holdings in local power infrastructure by investing in small hydro and geothermal stations.
This Tuesday, the Kenya Tea Development Agency (KTDA) announced its intention to invest in local small hydro and geothermal stations. KTDA, whose core business is tea marketing, announced that it is actively pursuing 10 hydro sites in various parts of Kenya to produce a targeted goal of 20MW in three years. In addition, KTDA is also looking to invest in geothermal power projects being conducted by other groups, including the Geothermal Development Corporation.
KTDA’s investment in power plants is seen as a strategy to mitigate the rising costs of production (particularly in labor and electricity) as the per-kilo cost of made tea has risen roughly 15% since the summer of 2011. KTDA already has one operational mini hydropower plant in Meru, and has recently broken ground in Nyeri on a second plant with an anticipated 5MW capacity.
KTDA is also delving into the possibility of investing in wind and solar production to continue to reduce costs as well as bolster the power supply to the public.
This is not a new concept as other power customers (off-takers) in other countries and even in Kenya have either invested or even developed their own power supply. A good example are Oserian Farms in Kenya in proximity to the Olkaria geothermal field in Kenya. The farm operation actually built their own two small geothermal power plants. A good description about this effort can be found here.
Source: AllAfrica.com
