Kenya plans Sh200bn expansion of power grid

Kenya Power technicians repair transmission lines. Electricity losses through transmission are estimated to cost Sh8bn annually. Photo/File

What you need to know:

  • Ketraco managing director Joel Kiilu said an additional 2,600 megawatts of power is expected to be generated by 2018 hence the need for an expanded grid.
  • Among the new high-capacity transmission lines set for construction are Mombasa-Nairobi (475km), Nairobi ring (100km), Lessos-Tororo (127km), Olkaria-Suswa (50km), Olkaria-Lessos-Kisumu (300km), Kenya-Tanzania (100km), Loiyangalani-Suswa (430km) and Ethiopia-Kenya (686km).

The government plans a Sh200 billion expansion of the national power grid by 2017 to cater for additional generation capacity and curb system loses.

Kenya Electricity Transmission Company (Ketraco) managing director Joel Kiilu said an additional 2,600 megawatts of power is expected to be generated by 2018 hence the need for an expanded grid.

“The amount is already secured and available to fund the projects to completion by 2017,” he told a workshop on nuclear energy cooperation between Kenya and South Korea.

The Kenya Electricity Generating Company (KenGen) will contribute over 1,000MW of the expected new capacity, while the rest will come from Independent Power Producers (IPPs).

The country is also expected to receive 400MW from Ethiopia by 2018.

Among the new high-capacity transmission lines set for construction are Mombasa-Nairobi (475km), Nairobi ring (100km), Lessos-Tororo (127km), Olkaria-Suswa (50km), Olkaria-Lessos-Kisumu (300km), Kenya-Tanzania (100km), Loiyangalani-Suswa (430km) and Ethiopia-Kenya (686km).

“The new lines will help transmit power from large projects such as KenGen’s 280MW plant in Olkaria and the 300MW Lake Turkana wind project,” the MD said.

Mr Kiilu said the new grid will also help curb system losses estimated to cost Sh8 billion annually.

“The current system loses are estimated at about 17.3 per cent, which is quite huge given the energy constraints in the country.

‘‘It is upsetting to lose about Sh8 billion every year but this can be corrected with the upgrade programme we have planned for the grid,” the MD said.

System losses are revenue leaks brought about by inefficiency in the power flow system and meter tampering or outright theft.

The losses have seriously hit operations of distribution firm Kenya Power, which has unsuccessfully pushed for an increase in tariffs to cover for ballooning costs. The government has been reluctant to allow the review fearing its impact on the cost of living countrywide.

Deputy President William Ruto last month said the government had shelved the planned review of tariffs and urged Kenya Power to address inefficiency in its system.

“Kenya Power has to sort out any inefficiency in its operations as the government will not accept any proposal to increase power tariffs,” he said after meeting top government officials from the Treasury and the Ministry of Energy, the Energy Regulatory Commission (ERC) and Kenya Power.

Mr Kiilu said the expanded grid would also help boost connections in rural areas where millions of people remain without power.

“The expanded grid will provide an opportunity to connect more people in the rural areas. The national electrification is at present at approximately 30 per cent, which is still low,” he said.

Slow growth

The energy sector, though critical in uplifting the country’s development, has registered slow growth in the past due to the high initial capital outlay and inability to mobilise adequate financial resources to undertake massive investment.

Lack of sufficient energy has in turn frustrated industrial expansion in Kenya for decades despite the availability of huge energy reserves such as wind, coal and geothermal.

The government has promised to open the energy sector to bigger participation by the private sector to help boost the country’s power generation capacity.

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