Price review to help Kenya Power to purchase power from current projects
Well head plant of Green Energy Group on location, Kenya (source: Green Energy Group)
Alexander Richter
27 Feb 2013
A planned price review is to help Kenya Power to finance the purchase of power from the 36 MW OrPower 4 geothermal plant and geothermal wellhead units at Olkaria currently being built for KenGen.
Reported locally, Kenya Power intends to use funds raised from a planned power tariff review to finance the set up of power generation facilities.
The tariff review and an increase in power rates, will enable the company to offset payment obligations for the power capacity from plants to be commissioned after next month.
The increased tariff prices will stabilize operations as it will secure to provide more plannable cash flows.
If approved by the energy regulator the implementation of the tariff price reviews will increase the prevailing electricity bills for consumers with the fixed charge poised to jump to Sh200 ($2.19) from the current Sh120 ($1.32) starting next month and further to Sh250 ($2.74) in July.
The company is planning to raise funds for the 36 MW OrPower4 geothermal plant, a 87 MW diesel plant and wellhead units.
Another tariff review is set for July aimed at funding five additional power projects, the Olkaria 1— life extension, the 16MW OrPower4 geothermal plant, the Athi River 1 and 2 diesel power plants and the 15MW Wellhead Units geothermal plant.
“Kenya Power purchases electricity from the KenGen and six Independent Power Producers (IPPs) — Iberafrica Power, Tsavo Power Company Limited, Rabai Power, OrPower4, Mumias Sugar and Imenti Tea Factory Small hydros.
The firm also buys energy from Tanzania Electricity Supply Company Limited (TANESCO), Uganda Electricity Transmission Company Limited (UETCL) and Ethiopian Electric Power Corporation (EEPCO).
The power capacity in the market currently stands at 1,672MW and 19 power generation projects in the next four years are expected to increase the energy capacity by a further 1,248MW.”
Source: Daily Nation
