HomeRegional NewsEast AfricaKenGen grows revenue through emergency power

KenGen grows revenue through emergency power

In East Africa, the national power company, KenGen, disclosed this revenue in its latest annual report, which also shows that the management income grew 11% from Sh24.9 million ($245) a year earlier.

Local media the Daily Nation, quoted the power utility stating that it earns $0.75 cents/kWh in management fees for all the temporary power generated by Aggreko in Muhoroni and Garissa.

The two Aggreko emergency power plants have since been shut down. The 30MW Muhoroni generator was switched off in July while the temporary 3.4MW Garissa generator was unplugged two months earlier.

Managing director Albert Mugo said: “During the year the company managed an emergency power supply project known as Aggreko international projects as an implementing commissioning agent on behalf of the ministry of energy and petroleum.”

KenGen earns the rights to manage emergency power

In an interview with the Daily Nation, Mugo stated that the firm was tasked to manage the costly emergency power projects because Aggreko does not hold a valid electricity generation licence.

The latest disclosure means KenGen has pocketed Sh916.6 million ($9 million) in fees for managing Aggreko’s emergency power projects over the last decade, official data indicated.

Media highlighted that the earnings reveal the mixed fortunes of emergency power; which burdens homes and manufacturers with high power bills, while generating income for the power producer.

It is reported that emergency power is priced as high as $50 cents/kWh, which is said to be more than double the cost of diesel-fired electricity set at $20 cents/kWh.

Kenya producing its own backup power

Aggreko has pocketed more than Sh12 billion ($117 million) in electricity sales over the past decade, in supplies to retailer Kenya Power, media reported.

The Glasgow-based temporary power firm presently has no running state contracts in Kenya following the expiry of the Muhoroni and Garissa deals.

The Aggreko Muhoroni plant was replaced by a 30MW gas turbine owned and operated by KenGen.

Meanwhile, Garissa was finally connected to the grid in May this year, hence no longer dependent on the Aggreko generator.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.