This marks the final phase of the Sh115.4 billion Olkaria geothermal project which is expected to lower the cost of electricity following a reduced reliance on expensive thermal power.
Power bills in Kenya contain a fuel charge which fluctuates depending on the amount of diesel-generated power and global oil prices, hence the urgency to reduce this component.
The Kenya Electricity Generating Company (KenGen) is testing the final unit of its 280MW Olkaria geothermal power project ahead of its commissioning next month, raising hopes for a further drop in power bills.
KenGen says the 70MW unit 5 was connected to the national grid on Monday and it is currently feeding 52.5MW into the system even as tests continue.
This marks the final phase of the Sh115.4 billion Olkaria geothermal project which is expected to lower the cost of electricity following a reduced reliance on expensive thermal power.
The project comprises of the 140 MW Olkaria IV— which was commissioned by President Uhuru Kenyatta last month— and the Olkaria I units 4 and 5 each with a capacity of 70MW.
“On Monday, we achieved a major milestone on the 280MW project when unit 5 was synchronised with the national grid,” said Albert Mugo, the KenGen chief executive officer.
“In essence, it means that we are now close to the full 280MW even as we continue with load tests for unit 5,” he said, adding that the tests were to ensure system stability.
Fuel charge
Power bills in Kenya contain a fuel charge which fluctuates depending on the amount of diesel-generated power and global oil prices, hence the urgency to reduce this component.
Geothermal power accounted for 42.7 per cent of the 794.1 million units of electricity bought by homes and businesses in October while hydro power accounted for 35.1 per cent.
The share of thermal power remained at 45 per cent for the better part of the year following low water levels in dams but the new Olkaria units have helped reduce this to 28.8 per cent.
Over the months of July, August and September the firm installed 210MW into the Olkaria project in three equal batches culminating with the Mr Kenyatta commissioning the main unit in October.
Monday’s installation now means that KenGen’s steam power output stands at 468MW up from 158MW in December last year, a near tripling of its production.
KenGen has plans to more than double its capacity to 3,000MW by 2018 from the current 1,335MW.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
