Wednesday, July 24, 2013

Uhuru Kenyatta's kin bids for Sh11b power plant

Power cost could reduce as Kenyatta kin bids for Sh11b plant

Updated Monday, July 22nd 2013 at 23:09 GMT +3
By Frankline Sunday
New developments in wind and solar power generation projects could see consumers get cheap energy. The move follows effort by the private sector and Government to generate cleaner energy.
A new entrant  Prunus Energy Systems Ltd is expected to file an application for a power generation license next week.
According to a notice in the Kenya Gazette dated Friday 18, 2013, the Company, will file for an electricity power generating license with the Energy Regulatory Commission. (ERC)
legal notice
“The Prunus Corner Baridi wind farm envisages the establishment of a 25 wind turbines for a total capacity of 50MW which will be connected to the National grid through a 20km 66kv line to the Ngong substation part of the Nairobi ring currently under construction,” reads the notice filed by M. Ngengi Muigai.
Muigai,  a former MP for Gatundu is cousin to President Uhuru. He is stated as the chairman of Prunus Energy Ltd. The company has already conducted an environmental impact assessment into the viability of the project.
It has earmarked 800 ha piece of land leased from the Kenya Forestry Service.
The Prunus Corner Baridi wind farm will be constructed 8km South of Ngong Town at an estimated cost of $130 (Sh11 billion).
If granted a license by the ERC, Prunus will add to thegrowing list of wind power projects that will cumulatively add an approximate 650 MW of installed capacity onto the national grid.
According to ERC Director-General Kaburu Mwirichia,  the new wind power installations will reduce the cost of energy.
“We are looking forward to these projects that are being conducted either through government financing, bilateral donors or the private sector,” he stated.
“We have licensed other wind energy projects and approved environmental impact assessments of several projects like in Kinangop and Turkana. We believe that these projects are working up the financing for their various projects,” stated Kaburu.
The 60.8MW Kinangop Wind Park Project which is run by Aeolus Kenya, a subsidiary of the European energy firm,. It is expected to break ground by the last quarter of this year. Just three months ago, the African Development Bank, pledged commitment to back the 300 megawatt Lake Turkana wind project which is expected to be Africa’s biggest wind electricity generation plant. Other on-going projects include Kipeto Energy Ltd owned by US conglomerate General Electric.
The firm is  expected  to build a 100MW wind power generation plant in Kajiado County.
100Mw plant
“The wind power projects will replace the power that we get from thermal generation which is twice as expensive as wind generation and the savings are expected to be transferred to the consumers,” said Kaburu. State power distributor Kenya Power has in the past six months written to the regulator, ERC to be allowed to increase the electricity tariffs citing increasing costs of operations.
Local consumers and the private sector have in the same period of time appealed to the Government to reduce the cost of electricity , which is considered one of the highest in Africa.
An increase in the energy installed capacity in the country will stabilise the demand for energy that currently outstrips the supply.

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