More homes set to access power as KPLC steps up grid

The Kenya Power and Lighting Company plans to massively scale up electricity transmission and distribution to wire up a larger proportion of the country to the national power grid.

The firm, in conjunction with the Kenya Electricity Transmission Company (Ketraco), plans to invest Sh141 billion ($1.9 billion) in the next three years in a major upgrade and installation of new power distribution and transmission capacity to meet growing demand for power by businesses and households.

The extensive infrastructural layout to cover an estimated 5,498 km is expected to address existing transmission weaknesses and power losses while at the same time attempting to meet the growing demand for power by enhancing connection across the country.

“The enormous infrastructural expansion supported by huge investments in generation and distribution will enhance power access contributing to economic growth in the country,” said Mr Joseph Njoroge, KPLC managing director.

Mr Njoroge indicated that this will allow the sole power distributor to obtain cheaper electricity, improve on operational efficiency and reliability, reduce system power loss and increase the rate of customer connections hence overall revenue for the firm.

The government estimates that only 10 per cent of Kenyan households have electricity and it is targeting to raise access to 40 per cent by 2020.

The capital intensive project will see the expansion of the country’s transmission and distribution from the current 41,486 km to 46,984 km.

Notably, the government unbundled the electricity sector by forming different entities to handle separate functions such as exploration, production, transmission and selling of power.

The unbundling process has led to the creation of two additional entities, Geothermal Development Corporation (GDC) and Ketraco charged with undertaking exploration and setting up of transmission infrastructure respectively.

The government estimates that the transmission project will cost Sh83 billion ($1,096 million) and it has set aside Sh25 billion ($329 million) to be used by Ketraco.

The balance of Sh60 billion will be sourced externally either from development partners or private investors.

The government has been carrying out the rural electrification programme to enhance electricity access especially in rural areas.

Overall growth

However, lack of transmission infrastructure remains the main bottleneck.

The huge capital outlay required to install power lines has slowed down the wiring process leading to loss of business opportunities for the rural economy.

Economists have pointed to the strong correlation between a country’s economic performance and availability of electricity.

“There are many economic activities that are supported by availability of electricity hence the overall growth of the economy,” said Linet Oyugi, an economist with the Institute of Policy Analysis and Research (IPAR).

Ms Oyugi reckons that power allows small and medium enterprises such as welding, engineering, saloon and food processing businesses to thrive.

The recent economic surge in the country has been attributed to the rapid supply of electricity.

In deed, following the rationing of power on the back of the prolonged drought the economy recorded subdued growth as businesses were forced to operate below capacity.

Similarly, businesses cost of operation edged upward as they resorted to alternative power sources such as generator.

Even as the country explore various sources of power generation such as geothermal, wind and thermal the government is planning to tap power from Ethiopia which is undertaking arguably the largest hydro dam project Gibe III.

Gibe III is expected to produce 1800 megawatts out which Kenya will import 500MW under a power purchase agreement entered into in 2006.

The planned transmission lines from Ethiopia will cover a total of 1,200km at an estimated cost $752 million (Sh52 billion) making it the single largest and most expensive project.