Private equity firms set sights on power sector

“The balance 70 per cent debt is being arranged by African Development Bank as lead debt arranger with themselves providing Euro 100 million,” Mr van Wageningen said.

LTWP’s entry into other East African markets could bring a major relief for regional economies hard-pressed for reliable and affordable supplies.

For instance, in Kenya statistics show that the country has an installed power capacity of 1,480 mega watts, including temporary emergency power of 290MW, but is supplying about 1,050MW at peak time.

The country’s power reserve capacity has dipped to record levels of 65MW or 5.6 per cent of the effective demand, which is well below the reserve limit of 15 per cent, triggering panic that the country could run short of power from 2012 if generation does not improve.

Projections by the Energy Ministry show that Kenya requires at least 2,013MW in additional power supplies to the national grid by 2014 even though such dreams have been thwarted by financing hitches.

The Energy Regulatory Commission identifies lack of investment in the sector as a major contributor to the crisis despite widespread claims that poor weather was to blame.

Kenya heavily relies on hydro-based source that accounts for about 60 per cent of capacity.

Current generation mix is 719MW hydro, 163 MW geothermal, and 407MW thermal — including 290MW from emergency power producers.