Monday, September 03, 2007

KenGen rules out power rationing as it increases energy production

By Mangoa Mosota

There would be no power rationing, at least not this year, the Kenya Electricity Generating Company (KenGen) has said.

KenGen Managing Director, Mr Eddy Njoroge, said over the weekend adequate measures had been taken to avoid a power rationing programme.

"I don’t foresee us resorting to power rationing, although the reserve margin is small," he said.

Njoroge was speaking at the weekend in Nyando, during the initial water filling ceremony at the intake of Sondu Miriu project.

He said KenGen has set a five-year ambitious plan to produce 500MW.

Njoroge said the target will be achieved through a number of hydropower and geothermal projects currently under construction.

He said the demand for power in the country would exceed 1800MW by the year 1012.

"We will work to ensure that we surpass this demand to ensure the reserve margin is adequate," said Njoroge.

He added that the current demand stands at1010 MW, but is expected to rise significantly in the next five years.

Njoroge, however, said most of the projects were behind schedule due to the rigorous procedures set by donors.

"We plan to complete many of our projects within three years, but conditions set by donors delay disbursement of funds," he said.

Njoroge said the company will undertake a three-year project at Sang’oro, Nyando District expected to add 20 MW to the National Grid.

The project will be funded by Japan Bank for International Corporation (JBIC) to a tune of Sh3.3 billion.

"Tendering will be done on Monday and bids will be submitted by December," he said.

He said construction work is earmarked to start in April, next year.

Njoroge said the Sondu Miriu Hydro Power Project which will be completed by November, will add 60 MW to the National Grid.

The project was funded by Japan at a cost of over Sh10 billion.

However, the cost of the project has exceeded the initial allocation as it stalled for four years.

He said Olkaria II, third machine Geothermal Power Plant will be constructed by Mitsubishi Corporation at a cost of Sh6.5 billion.

He said the World Bank, European Investment Bank and French Development Agency (AFD) will jointly fund the project.

"The three-year construction work will commence in a month’s time," he said.

He added that six geothermal wells are being drilled by Great Wall Drilling Company from China, and will be competed in the next one year and at a cost Sh1.6 billion.

Kenya currently produces 130MW of power from geothermal sources in three sites on the floor of the Rift Valley, which KenGen says has potential to produce 2,000MW.

Njoroge said KenGen would rehabilitate Kiambere hydropower at Tana River to produce an additional 20MW.

Njoroge was accompanied by the company’s chairman,

Mr Titus Mbathi and other directors, the chairman of the Lake Basin Development Authority, Mr Zablon Olang’, Nyanza PC, Mr Paul Olando and PPO, Ms Grace Kaindi also accompanied him.

KenGen, which is quoted at the Nairobi Stock Exchange, is the leading electric power generation company in the country, producing about 80 per cent of electricity.

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