Ketraco unveils Sh350 billion plan to secure power supply

Kiambere -Embakasi highway voltage transmission powerline supported by temporary cable suspender structures where four pylons collapsed. [David Gichuru, Standard]

A proposal to have Kenya Electricity Transmission Company (Ketraco) charge firms for delaying offtake of power from their grid has been fronted by Energy Cabinet Secretary Davis Chirchir as a way of making the firm more profitable. 

The proposal presented by the CS yesterday during the launch of the firm’s 2023-2027 strategic plan also seeks to ensure the country is secure in terms of power supply. Additionally, it should avoid Ketraco servicing loans on projects that are completed but not raising any revenue because they are not being utilised as planned. 

This proposal has partly informed Ketraco’s strategic plan which says the firm will acquire 100 per cent wayleaves and 20 substation land before commencing any project. 

According to the plan, Ketraco is seeking Sh350 billion to implement the plan. 

The plan targets to increase the grid by 4,600km and 36 more substations in the quest to solve power demand. 

CS Chirchir, whose office has been on the receiving end due to frequent power outages, challenged Ketraco to unbundle the plan to attract private players and show value to shareholders. “We are going to rework this roadmap and show value to the shareholders,” said the CS. 

 Generated power

The CS noted challenges to offtake power from the transmission company by Kenya Power and proposed adopting the model of Independent Power Producers (IPP).  In this model, which he referenced Lake Turkana Wind Power (LTWP) company, Kenya Power pays the producer even when it does not evacuate the generated power.

“If we have built a line and they (Kenya Power or any other partner) do not deliver their line on time if the line needs to earn revenue, we should be able to charge them for failing to complete the end of the circuit,” he said. 

He said the new model will ensure if the line or project has been funded through a loan, then the debt will be repaid on time. “It is one thing for Ketraco to say we are doing well only to be let down by Kenya Power or someone else,” said the CS. From the Sh350 billion that Ketraco is seeking to implement the plan, the firm expects Sh58 billion from the exchequer.

Managing Director Dr John Mativo said the firm will undertake Sh100 billion worth of PPP projects.  This includes connecting Ethiopia’s powerline to Tanzania. The firm also anticipates raising Sh30 billion from wheeling charges, Sh2 billion from fibre, Sh140 billion from development partners, Sh17 billion from asset monetisation and Sh1 billion from other income.