Market News

Pwani Oil own power cuts national grid purchase by half

Rajul Malde
Pwani Oil commercial director Rajul Malde. FILE PHOTO | NMG 

Mombasa-based Pwani Oil Company has slashed the use of electricity from the national grid by more than half as it switches to its co-generated energy to cut costs.

The company is now using its 1,500 kilowatt project at the Kikambala plant to supply up to three quarters of the energy requirements.

Commercial director Rajul Malde says this has seen the cost of energy drop significantly due to the cheaper cogeneration.

“We have had a significant reduction on the cost of energy since we started using our own generated electricity,” said Mr Rajul.

Mr Rajul said the cost of power in the country has remained high with the government failing to implement the 30 percent subsidy programme announced in the last financial year to give factories lower cost electricity.


The firm requires a total of 2,500 kilowatts to run the entire factory but currently it has a deficit of 1,000 kilowatts, which it plans to bridge by establishing a solar plant.

“We want to put up a solar plant as we focus on clean energy to fill up the existing deficit at our plant,” he said.

This comes at a time when more firms are making application to the energy regulator seeking permits for establishment of their own power plants to cut reliance on Kenya Power.

Transmara Sugar Company a week ago made an application for cogeneration permit. The miller is seeking permit to produce 8.5 megawatts of electricity for use at its sugar mill complex based in Narok County.