Data from the Energy Regulatory Commission (ERC) shows that the share of thermal power in the energy mix consumed stood at 32 per cent last month or 11 percentage points above cheaper hydropower’s 21 per cent.
Geothermal generation stood at 376 million units in June, while thermal power was at 274 million units.
The economy took in a total of 855 million kWh last month, according to the energy regulator’s data.
The lower water level in the country’s hydro-electric dams due to drought has ensured power bills remain high because of sustained use of thermal power as an alternative.
Hydropower is Kenya’s cheapest source at about Sh3 per unit, followed by geothermal (Sh8) while thermal is Sh19 per unit.
Kenya’s use of expensive diesel-generated electricity has risen to a three-year peak that has left consumers with a huge cost burden.
Data from the Energy Regulatory Commission (ERC) shows that the share of thermal power in the energy mix consumed stood at 32 per cent last month or 11 percentage points above cheaper hydropower’s 21 per cent.
The decline in hydro-power production has been attributed to a prolonged drought that has significantly reduced the amount of water in the dams since January.
At 32 per cent, thermal power’s share of the total production mix has touched levels last seen in July 2014 before the addition of 280 megawatts (MW) of geothermal energy to the national grid.
The increase in thermal has in the past translated to higher monthly bills since consumers pay fuel levy that is linked to the amount of diesel-generated power on the grid.
In July 2014, for instance, thermal intake stood at 32.9 per cent, about the same level as last month’s, causing consumers to pay Sh7.22 per kilowatt hour (kWh) in fuel charge-related billings.
The levy, thereafter, dropped by up to 65 per cent (to between Sh2 and Sh3 per unit) with the coming on board of the additional geothermal power in the second half of 2014 that cut thermal’s share to below 20 per cent.
This is the reason power sector observers are seeing as suspect the energy sector regulator’s retention of the fuel charge at Sh2.85 since February despite the steep rise in thermal power’s rise 32 per cent.
This is 60.5 per cent lower than what consumers were charged when thermal intake stood at similar levels three years ago.
The retention of the levy at the comparatively low levels is being seen as only possible with government subsidy and with the aim of keeping power bills down in the run-up to next month’s General Election.
ERC officials, however, attributed the lower fuel levy to increased geothermal power consumption (44 per cent last month) compared to 33.2 per cent in July 2014.
“We are doing more geothermal now. This has helped to mitigate the harsh effects of drought on power bills,” said acting ERC director-general Pavel Oimeke.
The prolonged drought has sharply cut water levels in dams, slashing hydropower production 40 per cent to lows of 179.3 million kWh last month from 299 million units last December and 356.8 million units in October.
Kenya relies on a mix of hydropower, thermal and geothermal energy — whose share stood at 44 per cent last month, maintaining its position as the country’s main power source.
Geothermal generation stood at 376 million units in June, while thermal power was at 274 million units.
The economy took in a total of 855 million kWh last month, according to the energy regulator’s data.
Because diesel-generated power is expensive, it is only produced when there is a shortage of cheaper hydropower and available geothermal energy has been fully injected into the grid.
The lower water level in the country’s hydro-electric dams due to drought has ensured power bills remain high because of sustained use of thermal power as an alternative.
Hydropower is Kenya’s cheapest source at about Sh3 per unit, followed by geothermal (Sh8) while thermal is Sh19 per unit.
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