Steady growth steps up use of expensive diesel power

Kenya is once again turning to expensive thermal power generators to keep the wheels of the economy turning following reduced imports from Uganda that have left the country thin on energy reserves.

Uganda, which has been experiencing a power deficit, has cut its supplies to Kenya to about half of the contracted 80 megawatts.

Instead, the country has been wanting a reverse load of around 30 megawatts from Kenya, straining the reserve during peak demand.

Last week, the Kenya Power and Lighting Company (KPLC) attempt to push back 30 megawatts to Uganda caused instability in the transmission system leading to a two-hour outage in most parts of western Kenya and the city’s Ruaraka area.

National grid

“We do not have enough spinning reserve to stabilise the power transmission system. KPLC is able to import 80 megawatts from Uganda but cannot push back 30 megawatts without bleeding the system,” Energy permanent secretary Patrick Nyoike said.

KPLC has now asked Independent Power Producers (IPPs) to step up supply from their diesel generators as three new thermal generators look set to inject an additional 252 megawatts to the national grid.

Two of the new thermal plants - Gulf Power and Triumph Energy each with a capacity to generate 84 Megawatts are located at Athi River while Menelec’s 84 Megawatts is in Thika.

At the end of this month, Kengen is also expected to relocate its 60MW gas turbine (thermal plants) to Nairobi where sufficient support is needed.

Existing thermal plants include Rabai Power, IberAfrica, Tsavo Power and Aggreko’s plants in Embakasi.

The latter’s contract for 60 megawatts has been extended to January 6, 2011.

Aggreko was initially to be phased out by June 30, this year, when the dams at KenGen’s Seven Forks complex - which accounts for 47 per cent of power generation — were expected to have filled up to capacity.

“Aggreko has been extended to accommodate the system and support voltage stability,” said Mr Nyoike.

Peak power demand reached 1127 MW last week against an installed capacity of 1 400MW.

Kenya’s transmission system is heavily dependent on hydro sources, leaving it at risk of outages when hydrology is poor and thermal generators are switched off.

KPLC managing director Joseph Njoroge said power demand increased by 20 megawatts at the close of September buoyed by increased economic activity.

Competitive edge

Despite expensive thermal power blunting their competitive edge in a regional market where low priced goods have emerged as the key driver of market share growth, Kenya manufacturers view the option as better than load-shedding.

Power analysts had forecast a further cut in electricity prices due to increased use of cheaper hydro power and termination of expensive emergency power.

Although the five dams at the Seven Forks Complex were full, they were still shy of their spilling levels

As at Wednesday last week, the main Masinga Dam, which spills over at 1056.5 metres had attained a water level of 1054.1 while Kamburu was at 1002 metres, against the spilling level of 1006.

Policy attempts to shift the power generation mix towards renewable energy is being held back by huge risk guarantees demanded by investors, high costs and turn around for their development.