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Kenya looks at new tender for LPG plant as electricity prices come down

In East Africa, Kenya has hinted it will consider a second attempt at tendering a 700 megawatt (MW) liquefied natural gas power plant near the port of Mombasa in a bid to ease the country’s energy shortage.

The tendering process collapsed last month after the government said that bidding companies had failed to meet the requirements for the US$500 million project.

Cutting electricity prices

Meanwhile, Energy Cabinet secretary Davis Chirchir announced yesterday the cost of electricity in Kenya will fall by at least 30 per cent at the end of this month after the introduction of 70 MW of geothermal power into the national grid.

He said cheaper geothermal power will displace “a very significant” portion of diesel generated power thereby cutting fuel cost charge on the consumer bill.

According to the Energy ministry, the use of geothermal power will reduce cost of power from an 21 US cents per kilowatt hour to 7 US cents.

“It will translate to a saving to economy of up to Shillings 21 billion (US$235 million) a year,” said Mr Chirchir.

The latest addition now brings to the total geothermal power added to the national grid in the last three months to 210 MW.

Another 70MW will be assimilated into the national grid next month, the government announced, translating to further reduction in power bills, the ministry said.