In East Africa, the Kenya Electricity Generating Company (KenGen)’s annual report indicates that the public utility received Sh24.9 million ($24.4 million) in the first half of 2015 for the management of emergency power generation in the country.
In addition, the revenue disclosed in the annual report for the same period shows that the company earned Sh33.7 million ($33 million) for a similar activity, the Daily Nation reported.
KenGen’s managing director, Albert Mugo, told media that the money was paid to KenGen for the role it played in assisting UK’s Aggreko, a temporary power generation company, to acquire a licence as well as procurement of fuel for emergency power generation.
Mugo said: “The payment depends on the amount of energy generated. KenGen has an agreement with the ministry of energy and petroleum and Kenya Power to manage emergency power on their behalf.”
Emergency power generation for Western Kenya
According to the Daily Nation, Aggreko operates 30MW of emergency power in Kenya, which is the balance from an initial of 290MW. However, most of it has been discharged from the national grid over the years in efforts to manage the cost of electricity.
According to an economist from the Energy Regulatory Commission (ERC), David Kariuki, Kenya utilises the emergency power in to stabilise power supply in the western parts of the country, which lack sufficient generation.
“The key issue is that the emergency plant remains because the western part of the country has inadequate power as well as not enough reactive power and hence the plant is required. The problem will be surmounted once the relevant transmission lines are completed,” Kariuki said.
According to the ERC, emergency power was hooked to the grid at an average of Sh18 ($0.17) per unit.
The Construction of a 220kV transmission line between Olkaria and Kisumu through Lessos and another 132kV line between Sondu and Awendo, which are part of the infrastructure hoped to stabilise power supply in Western Kenya is still set to begin.