World’s leading temporary power producer enters generator leasing market

Last Updated 14 years ago by Kenya Engineer

A week after opening a business hub in Nairobi, Aggreko has entered the East Africa generator leasing market. The world’s biggest temporary power provider intends to ease the regions energy output through its $50 million investment planned for East Africa.

The company’s entry into the business will save businesses the burden of raising money to acquire generators and instead use the capital for other core activities. The leasing business is increasingly being preferred by many as it saves a company the burden of borrowing money for getting the machinery which will only be useful when there is a power shortage or none at all.

Aggreko’s presence in the region has been mainly through public sector partnership, supplying emergency power to the national grids. In Kenya, the company supplies between 60MW to 290MW while in Tanzania, 100MW.It exited 100MW supply to Uganda following the completion of the country’s Bujagali hydro project early this year.

The increasing demand for emergency power is said to be fueled by the expanding manufacturing sectors across the region and growing connections in the rural areas both of which are exerting pressure on the national grid.The East African Community integration is increasing the market opportunities for manufacturers who are now investing in more production in markets without reliable power supply system.

It is however assumed that it will take at least five years before meaningful new generation projects start operation. Reduction in financing is partly because of the European debt crisis as the region has been traditionally the main source of financing for Africa’s projects.

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