Mombasa’s Kipevu 1 Diesel Plant will be decommissioned once its Power Purchase Agreement (PPA) lapses at the end of 2023, raising hope for lower electricity tariffs for consumers. Its 60-megawatt capacity will be replaced by energy generated from renewable sources, says the Energy and Petroleum Regulatory Authority (EPRA) in its latest report on the energy sector.
The biannual report released on 15th December, for the period ending June 2023, puts the renewable energy contribution at 84.65% of the total installed capacity of 3,311MW.
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While releasing the report, the Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo Bargoria said the share of renewables in the energy mix is expected to rise following the expiration of the Power Purchase Agreement (PPA) for the Kipevu Diesel Plant I in Mombasa which has been operational since 2003.
“Additionally,” Mr Bargoria said, “the Geothermal Development Company (GDC) is developing steam fields in the Baringo-Silali geothermal fields with an expected output of 300MW in the first phase.”
Iberafrica Power Plant whose 56-MW contract expired in October 2019 was the first one to be decommissioned followed by Tsavo Power with a capacity of 74MW whose licence expired in September 2021.
Thermal plants under Independent Power Producers (IPPs) have been largely blamed for the high cost of electricity in the country, with the government prioritising investments in renewable power that is clean, cheaper and generated from local sources.
According to the report, geothermal energy production surged by 21.84%, while energy generation from interconnected solar PV systems saw a substantial 41.84% increase with wind energy contributing 7.28% more compared to the previous financial year.
The development, Mr Bargoria said, deepens prospects of a viable regional power trading activity once the Kenya-Tanzania 400kV interconnector is commissioned. The arrangement allows Kenya to trade electricity with its neighbours thereby ensuring the energy deficit in one country is met with the energy surplus generated in a neighbouring country.
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Other key statistics on the performance of the electricity, petroleum and renewable energy sub sectors during the financial year 2022/2023 include:
● Kenya recorded a new peak demand for electricity indicating a 4.5 percent growth from the previous year’s 2056.67MW to stand at 2,149MW.
● The amount of electricity produced went up by 5.03 percent in the reviewed period.
● System losses decreased by 1.33 percent from 24.75 percent in the previous year to 23.42 percent. This is higher than the 19.9 percent benchmark set by the Authority.
● In the petroleum sector, there was a reduction in domestic petroleum consumption by 2.83 percent.
● The Authority conducted 21,190 sample tests at 4,445 petroleum outlets across the nation. A significant 98.76 percent (4,390) of the stations were found to be fully compliant with established regulations.
● The annual energy generated from interconnected solar PV systems increased by 41.84 percent from 312.99 GWh to a new peak solar generation of 443.94 GWh. This is attributed to the increase in solar installed capacity.
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