Kenya to save Sh42b in new power cuts

The country will be saving Sh42 billion ($500m) annually starting next year following the drop by 20 per cent in the cost of power.

Energy Cabinet Secretary Davis Chirchir says the cost of production is expected to come down drastically, with manufacturers being the biggest winners.

"We expect the country to be saving $500m annually due to the drop in the cost of power, which has been one of the handicaps facing development," he said.

Mr Chirchir noted that consumers were already feeling the effects of the drop in power tariffs, which was part of the Government's promise.

He said that in September, power tariffs dropped by 11 per cent, adding that this had further dropped by 28 per cent in October.

The CS attributed the drop in the cost of power to the shift from diesel to geothermal energy, which he said is cheaper and reliable.

"Geothermal accounts for 41 per cent of the total power pumped to the national grid in the last couple of months," he said.

He said that of the 5,000mw expected in the national grid in 40 months, 1,600mw would come from geothermal power.

"Kenya, just like other African countries suffers from lack of sufficient and cheap power, but we are committed to addressing this," he said.

The CS was speaking in Lake Naivasha Country Club during the opening of a short course on geothermal exploration.

CLEAN ENERGY

Geothermal Development Company Managing Director Silas Simiyu said the Government had invested KSh540 billion ($6 billion) in steam field development in Olkaria.

On Menengai, Dr Simiyu noted that the country had already invested more than Ksh90 billion, which had gone into the purchase of seven drilling rigs and development of 115mw.

Simiyu said the power generation company was seeking an extra USD350m towards geothermal development in Silale, Baringo and Suswa.
"We are seeking USD100m and USD250m towards steam field development in Silale and Suswa respectively and negotiations at an advanced stage," he said.

Ludvik Georsson from United Nations University identified Olkaria as one of the best geothermal fields in the world.

Prof Georsson praised the move to venture into Menengai in geothermal drilling, noting the country had high potential to tap into the clean energy.