Around 28% of Kenya’s installed capacity is owned and operated by IPPs, while 72% is supplied by state-owned Kenya Electricity Generating Company PLC
Independent Power Producers (IPPs) account for 25% of Kenya Power’s total output but rake in 47% of power purchase costs
Despite KenGen supplying KPLC with 72% of the total power, it accounts for only 48% of the purchase costs
Independent Power Producers (IPPs) are private investments in electricity generation. Kenya Power staff at work. Photo: Kenya Power Care. Source: Facebook The IPPs build, own and operate power stations and sell the power in bulk to Kenya Power and Lighting Company (KPLC), the electricity distributor.
Around 28% of Kenya’s installed capacity is owned and operated by IPPs, while 72% is supplied by state-owned Kenya Electricity Generating Company PLC ( KenGen) according to the Presidential Taskforce on Review of Power Purchase Agreements.
The IPPs have been blamed for expensive power purchase agreements, which have, in turn, led to higher electricity costs.
Kenya Power spends over 66% of its revenue on purchasing power, Daily Nation reported.
Whereas KenGen sold power to KPLC at an average of KSh 5.48 per unit, the amount was double for IPPs on average.
In 2020, the lighting company bought power from KenGen at KSh 5.48 per unit and sold it at KSh 16.31.
The Presidential Taskforce on Review of Power Purchase Agreements revealed that IPPs account for 28% of Kenya Power’s total output but rake in 47% of power purchase costs.
Despite KenGen supplying KPLC with 72% of the total power, it accounts for only 48% of the purchase costs. Kenya Power 2020 report The KPLC 2020 annual report showed Kenya purchased power as follows: > Kengen – 8.237 billion units at KSh 45.1 billion (KSh 5.48 per unit). Lake Turkana Wind Power – 1.238 billion units at KSh 12.2 billion (KSh 9.89 per unit). OrPower 4 Inc – 1.076 billion units at KSh 12.4 billion (KSh 11.58 per unit). Rabai Power Ltd – 252 million units at KSh 4.8 billion (KSh 19.12 per unit). Uganda Electricity Commission Ltd – 156 million units (KSh 12.33 per unit). Tsavo Power Company Ltd – 152 million units at KSh 3.9 billion (KSh 26.16 per unit). Garissa Solar Plant – 91 million units at KSh 535.6 million (KSh 5.89 per unit). Off-Grid Power Stations – 60 million units at KSh 2.1 billion (KSh 35.25 per unit). Iberafrica Power EA Ltd – […]