As part of it’s +5000Mw in 40 months
program, Kenya has invited bids
from investors for the development of two power plants with a combined output
of up to 1,800 megawatts (MW) from coal and natural gas, according to details
from Ministry of Energy and Petroleum.
The ministry said it is seeking investors to develop a 700-800 MW natural gas
fired plant near the port city of Mombasa.
“The proposed project
will be a 700-800MW power plant to be located on a 300 acre parcel of land at
Dongo Kundu or any other appropriate location between Mombasa and Kilifi,” the
ministry said in a statement.
The ministry
also plans to build a 900 to 1,000MW coal power plant in Lamu. Already, the
government wants to develop a US$5.5 billion mega port in Lamu to link
landlocked South Sudan
and Ethiopia to the Indian Ocean.
This bidding
process marks the beginning of a road map that will see Kenya increase electricity generation
capacity by 5,000MW from the current 1,644MW to 6,700 MW in 40 months. On the
list of projects expected to increase demand for electricity includes
construction of the standard gauge railway, setting up of Konza city and other
ICT towns.
For more details on the tender
documents, please click on the link below.
Also planned
is construction of an oil pipeline from South Sudan to Lamu as well as the
mining industry, irrigation projects and demand by the newly formed county
governments.
“We are also
going to upscale power purchase agreements, which have been taking too long to
conclude as well as deal with transmission and distribution challenges,” said
Joseph Njoroge, Principal Secretary-Ministry of Energy and Petroleum. With
increased generation capacity, the generation cost in $ cents is projected to
reduce from 11.30 to 7.41.
Commercial and
industrial tariff will also fall from US$c14.14 to US$c9.00 and domestic tariff
from US$c19.78 to US$c10.45.
The 5000 MW
additional generation capacity will be developed from geothermal-1646 MW,
Natural Gas 1,050 MW, Wind 630 MW and coal 1,920 MW, all under the framework of
public private partnership (PPP).
According to
Davis Chirchir, Cabinet Secretary, Ministry Of Energy and Petroleum the country
has a power deficit of 500 MW
at present and 1,664 MW that has been developed over the past 50 years.
“What we have was designed for supply
to homes and not industry and that is why many manufacturers are either
struggling or have shut their operations, relocating to cheaper destinations,”
he said
The Ministry is expected to shortly publish requests for proposals inviting
Independent Power Producers (IPPs) to participate in generation while the
Government concentrates in transmission and distribution.
The government
has already allocated Sh80 billion in the 2013/14 budget, a large bulk of which
would be used in transmission and distribution.
With capacity
of 1,664 MW against a maximum-recorded demand of about 1,410MW, Kenya is
under pressure to boost power generation as east Africa’s biggest economy is
expected to expand at more than 5 per cent.
The government
last month said it wants to add 5,000 MW to Kenya’s power output by 2017 to accelerate
growth, which is expected to push Kenya’s power demand up to 15,000MW by
2030.
For more details on the tender
documents, please click on the link below.
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