Kenya-Power Production: Cost of Power To Shoot Up

Photo retrieved from: chugachoutdoorcenter.com

“Power production-Kenya – Falling water levels in the dams and rising international crude oil prices are pushing up the cost of power, setting the stage for another round of commodity price increases. Meteorological Department officials say the country will experience dry weather in the first six months of this year. Power producer KenGen has also warned consumers to expect higher electricity bills as it shifts to thermal generation, cutting down on hydro-power to preserve water in its dams.

“We are now increasing thermal power generation to preserve water,” KenGen managing director Eddy Njoroge said. “This is a balancing act that we have to do to ensure we don’t end up with emergencies. We have ensured that there will no power rationing.”

Consequently, he added, power costs might be slightly higher as fuel cost is factored in. The higher price will be driven by escalating global oil prices and the power mix the company will be putting in terms of thermal generation.

The political turmoil in the Arab world is not helping the situation as supply disruptions are likely to cause jitters in the market.

Kenya is heavily dependent on hydro-power, which supplies half of the electricity in the national grid. The dams are mostly concentrated along the Tana River Seven Forks cascade.

Rising power costs are a fresh challenge to consumers and manufacturers, who had experienced a period of relatively low prices due to high rainfall received last year.”

Read more: Afrique en ligne

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