West Kenya’s Olepito Sugar factory says in its application for an electric power generation licence to the energy regulator, that the power generated will be used to run its operations at its plant located in Busia County.
The firm said that power generated will be from a back pressure steam turbine in line with a boiler using sugarcane bagasse as a fuel to generate steam.
A Busia-based sugar company owned by billionaire Rai family plans to start production of 1.5 megawatts (MW) of electricity from bagasse, making it the latest miller to cut its reliance on the national grid.
West Kenya’s Olepito Sugar factory says in its application for an electric power generation licence to the energy regulator, that the power generated will be used to run its operations at its plant located in Busia County.
The firm said that power generated will be from a back pressure steam turbine in line with a boiler using sugarcane bagasse as a fuel to generate steam.
The firm noted that the grant of the licence will not have an adverse effect on any public or local authorities, companies, persons or bodies, of persons within the area of the undertaking.
“Pursuant to provision of Section 119 (3) of the Energy Act, 2019, will on December 2021 make an application to the Energy and Petroleum Regulatory Authority for the electric power generation licence,” says the firm yesterday.
The firm plans to go into own power production at a time millers are diversifying into electricity generation to expand revenue streams and help the country meet power demands.
The State is dangling a feed-in tariff of $10 cents per kilowatt-hour to encourage the struggling industry into revenue expansion.
This could see each miller earn up to Sh90 million a year by using the heaps of bagasse churned out from daily milling processes to generate biomass power. In the move targeting all western Kenya-based millers, Epra estimates that 150 megawatts could be generated and injected onto the national grid by 2022.
This could help stabilise the region starved of reliable power which, according to the Kenya Association of Manufacturers, has impeded growth of industries. Millers have raised complaints over poor voltage stability and losses accruing from instability due to transmission over long distances.
It is expected that more power production by millers in the country will see the cost of sugar fall as power is key ingredient in the cost of production.
Kenya produces about 300,000 tonnes of sugar a year, compared with annual consumption of 500,000 tonnes. The deficit is covered by strictly controlled imports from COMESA.
The wholesale price of sugar has jumped 23 percent for a 50-kilogramme bag, marking one of the largest movements in recent days.
The commodity is now selling at Sh6, 200 from Sh5,050 last month, a move that will have an impact on consumers who are already grappling with an increase in the cost of other commodities.
The increase is attributed to a shortage in the market caused by a disruption in production by factories in western Kenya.
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