Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
KTDA sets up company to run its power plants
A group of women pick tea leaves at Kihome village in Othaya on September 28, 2012. Kenya Tea Development Agency has set up a company to run its hydro power plants that are aimed at reducing rising energy costs at its factories. File
The Kenya Tea Development Agency (KTDA) has set up a company to run its hydro power plants that are aimed at reducing rising energy costs at its factories.
KTDA Power Company will manage nine regional power companies that have been formed covering all 65 tea factories in the country. These will in turn own small hydro power projects that include Gura, North Mathioya, South Mara, Iraru, Thuci, Nyamindi, Maragwa, River Chania, Chemosit, Kipsonoi and Itare.
Speaking at Gura River in Nyeri County during a ground-breaking ceremony for the Gura Hydro Power Project, the agency’s chief executive officer, Mr Lerionka Tiampati, said each KTDA factory spends between Sh30 and Sh40 million annually on power costs.
“Energy accounted for about 30 per cent of the operational costs of the tea factories, with electricity alone accounting for 17 per cent,” said Mr Tiampati.
Four tea factories in Nyeri have ventured into a hydro power project on Gura River expected to cost Sh1.3 billion. Chinga, Gathuthi, Gitugi and Iria-ini tea factories have already signed a contract with V.S. Hydro, a Sri Lankan company, to embark on the project expected to generate five megawatts of electricity. The power plant set to be commissioned in 2014 is expected to reduce energy costs in turn boosting income for farmers.
The four factories need 2.8 megawatts hence the balance of 2.2 megawatts will be sold to Kenya Power.
The Ministry of Energy has been undertaking feasibility studies for some of the sites where KTDA plans to build hydro power stations.
Mr Tiampati said tea farmers have shown commitment to the projects by raising substantial amounts in equity, as the agency guarantees loans to construct the stations.
He said KTDA was exploring other sources of renewable energy like wind and solar power to supplement its energy needs. “To this extent, the company has identified the Michimikuru wind project which has the potential to produce 24 megawatts of power,” said Mr Tiampati.
He noted that in future, this line of business is going to be critical in providing alternative revenue to tea farmers. KTDA board chairman Peter Kanyago said KTDA investment in the small hydro power plants was a strategy meant to mitigate the rising costs of production.
The first KTDA small hydro pilot power project was at Imenti Tea factory in Meru County with its 1 megawatt small hydro plant that was commissioned in 2009. The power plant has been able to reduce the factory electricity bill by almost 60 per cent according to tea agency. The factory consumes about half of the generated 0.4 to 0.5 megawatts and sells the surplus to the national grid.
