Last Updated 13 years ago by Kenya Engineer
The promise of lowering power price by the government is nearing fulfillment with the commissioning of the 140MW Olkaria IV scheduled for next month. It is expected that governments’ geothermal exploration arm, Geothermal Development Company (GDC), will charge Sh1.72 per kilowatt hour as opposed to the real cost of Sh3.01 per kilowatt hour.
The governments has announced plans to lower the cost of power to consumers to as low as Sh6.02 per kilowatt hour from a high of about Sh16.34 per kilowatt hour.
The cost of steam is 3.5 US cents per kilowatt hour but state-owned GDC will be allowed to charge 2 US cents per kilowatt hour. The upfront cost of drilling one well generating 5MW of power stands at Sh559 million.
KenGen is in the process of developing an estimated 560MW of geothermal power at Olkaria while GDC is developing 100MW in Menengai.
The government has so far invested Sh24 billion in drilling steam wells in Olkaria. It is the government’s plan to generate at least 5,000MW in 40 months for the national grid from geothermal(1,646MW), coal and liquefied gas in a move to shift the country’s reliance on hydro power. (Read Kenya’s 40-month geothermal energy plan)
The private sector generates 900MW to 1,000MW of coal power in Lamu;700MW to 800MW of power using liquefied natural gas at Dongo Kundu in Mombasa and 900MW to 1,000MW of coal power at Mui Basin in Kitui county.
Read also: Kenya launches 5000+MW energy project
Extracts from Business Beat.
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