KenGen managing director Albert Mugo at a past press conference. New power plants saw Kenya Electricity Generating Company (KenGen) profit after tax for the half-year period to December 2014 rise to Sh4.9 billion. FILE PHOTO |
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KenGen said on Monday households and businesses have realised the full impact of the 280 megawatts of geothermal power that was injected into the grid between August and December.
The geothermal power has cut bills by about 30 per cent since August following the drop in the fuel surcharge from Sh7.22 per kilowatt hour (kWh) in July to Sh2.51 this month.
Electricity consumers are unlikely to enjoy further drops in their bills until the onset of long rains that is expected to boost the share of cheaper hydro-power to the national grid.
The Kenya Electricity Generating Company (KenGen) said on Monday households and businesses have realised the full impact of the 280 megawatts of geothermal power that was injected into the grid between August and December.
The geothermal power has cut bills by about 30 per cent since August following the drop in the fuel surcharge from Sh7.22 per kilowatt hour (kWh) in July to Sh2.51 this month.
“The full effect of it has already reflected in the power bills,” KenGen managing director Albert Mugo told the Press in Nairobi.
“However, when we get rains that will see hydro-plants generate more and help displace a lot of fuel and reduce the fuel cost charge.”
The long rains are expected to start in April and the wet weather would help fill the dams with water in June.
The Meteorological Department is yet to issue an update on weather patterns between April and June.
The share of hydro power stood at 41 per cent last month, down from 63 per cent in the same period last year due to increased share of geothermal power and dry weather that reduced water levels in the dams.
“In recent months, the country has had no rainfall and subsequently below average inflow of water into our hydro dams,” said Mr Mugo.
The share of electricity generated from geothermal sources in October for the first time surpassed that of hydro power.
About 140 megawatts was added to the national grid in late July, 70 megawatts in September and 70 megawatts in early December.
Data provided by KenGen show that geothermal power accounted for 51 per cent of electricity bought by households and businesses in December, from 14 per cent in the same month in 2013. The share of thermal power dropped to 10 per cent from 37 per cent.
Though the additional cheaper geothermal power has cut electricity costs by nearly a third since August, households have seen little changes when the comparison is stretched to 13 months ago due to the higher tariffs awarded to Kenya Power last year
But the additional geothermal helped curb the rise in the fuel charge, which peaked at Sh7.22 in August, and a further escalation in billings.
President Uhuru Kenyatta and his Rwandan counterpart Paul Kagame are expected on Thursday launch the Olkaria 1 plant units 4 and 5 producing 140 megawatts — which have already been injected into the grid between November and December.
Rwanda is set to buy 30 megawatts of geothermal power from Olkaria in a deal with Kenya Power.
Mr Mugo said construction of the Olkaria 5 and 6 plants would commence later in the year.
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