Chirchir unveils ambitious power generation plan

By WINSLEY MASESE

The Government plans to fast-track generation and distribution of energy to support the country’s long-term development plans.

According to the latest plan, the Ministry of Energy and Petroleum aims to generate over 5,000 megawatts of power in the next 40 months.

Currently, the country generates about 1,600 megawatts and if the new target is achieved, it would see a decline in power tariffs by 40 per cent besides making electricity easily available to consumers.

Cabinet Secretary Davis Chirchir said the country has the potential to increase electricity generation by threefold to power the country’s key economic sectors.

“This venture has a huge potential to accelerate the country’s industrialisation dreams, besides offering competitive power cost,” he said.

Once complete, the investment will also see domestic power tariff drop from the current Sh17 per kilo watt hour to Sh9 per kilo watt hour, while industrial tariff would reduce from the current Sh12.50 per kilo watt hour to about Sh8 per kilo watt hour.

The high cost of electricity has largely been blamed on hindering the country’s competitiveness in the global market.

The sub-sector has the potential of generating 33,000 megawatts by 2030 against an expected peaked demand rate of 26,500 megawatts.

Industry data show that geothermal power has the potential of generating close to 1,646 megawatts of electricity by 2016, but realisation of this target is held back by lack of capital expenditure. It’s also estimated that it would require Sh285 billion to achieve this production target.

Coal has the highest potential of generating power in the country, at 1920 megawatts against current geothermal production of about 1,646 megawatts. Liquefied natural Gas is expected to contribute about 1,050 megawatts. Chirchir reckons that over the next 40 months, the ministry is projected to generate 6,762 megawatts of energy.

Out of the projected capacity, 5,538, is projected to come from renewable energy source, a move that is expected to shift the country’s reliance on the unpredictable hydropower energy.

Chirchir explained how the 5,000 megawatts of new power generation capacity would be achieved at a recent energy forum attended by many potential local and foreign energy sector investors.

 Thje five-year plan puts emphasise on more than 300-megawatt plants. According to the ministry, larger units have the benefits of delivering economies of scale and minimising repetitive regulatory, procurement and financing efforts that are lengthy and costly.