Kenya halves power generation from thermal sources

Kenya has cut by more than half the use of thermal sources for electricity generation as East African nation seeks to lower the cost of power.

From about 300 million kilowatts per hour (KWh) a month generation of electricity from thermal, the country is now producing an average of 100 million KWh of power per month from the source, latest data from Kenya National Bureau of Statistics (KNBS) showed Monday.

Kenya has, however, scaled up the production of power from geothermal and hydro sources.

The move seeks to significantly lower the cost of power to the growing number of electricity consumers in East Africa's biggest economy.

In 2014, according to KNBS, electricity generation from thermal sources that include diesel-powered generators had peaked to 295.81 million KWh a month, the highest ever.

However, it has been coming down steadily every month, hitting an average of 130 million KWh for the first three quarters of last year before dropping to a low of 99 million KWH in the last quarter.

The share of thermal power generation in Kenya currently stands at a paltry 10 percent, from over 20 percent months back.

And as East African nation slows down thermal power generation, it has significantly increased electricity production from geothermal sources to about 50 percent while hydro stands at about 40 percent, according to the Energy Regulatory Commission.

Geothermal power production peaked at 400 million KWh a month last year, up from 300 million KWh as East African nation sought affordable, cleaner and reliable electricity.

The increase in geothermal power generation has boosted the total electricity production in the East African nation to over 800 million KWh a month, up from an average of 750 million KWh.

Kenya is the first African country to tap geothermal power, according to the World Bank. It has potential to produce 7,000MW and is targeting a production of at least 5,000 MW by 2030.

According to the Kenya Electricity Generating Company (KenGen), the country aims at increasing geothermal capacity by another 460 megawatts by 2018 to reduce the volume of hydro-power in its mix from about 40 percent to 28 percent.

From hydro, an average of 300 million KWh is generated a month. This amount sometimes surges to over 350 million KWh when there are heavy rains in the East African nation, as it were months back during the El Niño period.

The heavy rains filled the Seven Forks dam in Eastern Kenya, the main sources of hydropower, boosting power supply.

According to KenGen, reduction in thermal power generation comes with immense benefits of reduced fuel cost charge, which is a significant component in electricity bills.

"The cheaper the cost of power generation, the cheaper it is sold to consumers. Lower power bills translate to low energy inflation because less money is spend on power by families," said Ernest Manuyo, a business management lecturer in Nairobi.

He added that if the country cuts thermal power generation to about 5 percent of electricity mix, and step up production from geothermal, then this would be a big boost to the economy.