NAIROBI: Electricity distributor Kenya Power signed a power purchase agreement with two independent local power producers for the supply of 76 Megawatts (MW) of renewable energy.
Managing Director Ben Chumo told a media briefing in Nairobi that Akiira Geothermal Limited will sell 70 MW whereas Kleen Energy will sell 6 MW of hydropower to Kenya Power.
“All this power supply will be connected to the national grid by the end of 2016,” Chumo said, adding that the state-owned electricity distributor has so far signed 45 Power Purchase Agreements, out of which, 35 are operational.
In 2013, Kenya set a target of connecting a total of 5,000MW of power to the national grid by the end December 2016.
Early this year, Kenya Power signed a power purchase agreement for 100 MW of wind energy, which is expected to be connected to the national grid in the next two years.
Chumo also revealed that 17 percent of electricity generated in Kenya is lost due to an aging power infrastructure. He said that his company has received a loan of 430 million U.S. dollars from development partners to improve the flexibility and reliability of Kenya’s electricity transmission lines.
Chumo said the completion of these generation projects is crucial as part of the country’s strategy of diversifying the 5,000 MW additional generation capacity to ensure adequate power for the growing economy as well as reduce the overall cost of electricity.
He said the contribution of the two companies to the national grid is notable and is planned to increase in future, thus complementing government and electricity producer KenGen’s investment in the generation expansion.
“These partnerships and generation projects are crucial towards meeting our goal to reach 70 percent connectivity by 2017 and universal access by 2020,” Chumo added.
Kenya currently has installed generation capacity of 2,298 MW, with geothermal contributing 46 percent, hydro at 38 percent, thermal at 15 percent and wind at one percent.
