Energy and Petroleum Cabinet Secretary (CS) Opiyo Wandayi has staunchly defended the multi-billion shilling deal between the Kenya Electricity Transmission Company (KETRACO) and Adani Energies. The Ksh. 95 billion agreement is poised to transform the energy landscape by addressing the perennial challenges of power losses in the country and lowering electricity costs for consumers.
Addressing Power Losses
CS Wandayi emphasized that the collaboration with Adani Energies is a strategic response to the alarming rate of power losses in Kenya, which currently stands at approximately 24%. This figure is largely attributed to outdated transmission equipment and infrastructure. The CS highlighted that the new deal will pave the way for the installation of modern transmission lines and substations, crucial components in the effort to minimize losses and enhance the efficiency of electricity distribution across the nation.
Wandayi stated, “Contrary to popular belief, this deal will not only help us cut down on power losses but will also lead to a significant reduction in electricity prices for our consumers.” He pointed out that the new transmission lines and stations would replace the aging infrastructure that has been a bottleneck in the country’s quest for reliable power supply. By investing in modern technology, the government aims to ensure a steady and efficient flow of electricity from generation points to consumers.
KENGEN’s Strategic Plan
As the government strives to enhance the energy sector, the Kenya Electricity Generating Company (KENGEN) recently launched its 2024-2034 strategic plan, which outlines ambitious goals to inject an additional 1,500 megawatts (MW) into the national grid over the next decade. This initiative aligns with the government’s commitment to expanding renewable energy sources and meeting the growing demand from both manufacturers and households.
KENGEN CEO Engineer Peter Njenga expressed optimism about the future of energy production in Kenya. He indicated that approximately 800 MW of the additional capacity would come from geothermal energy sources, a sustainable and environmentally friendly option. “Our focus is on increasing renewable energy while gradually phasing out thermal power generation,” Njenga said. He emphasized the importance of diversifying energy sources to enhance stability and sustainability in power supply.
Investment in Energy Storage
In line with the strategic plan, KENGEN is also exploring investments in energy storage systems to optimize power generation from renewable sources such as solar and wind. Njenga revealed plans for a 500-hour storage system that would help balance supply and demand, especially during periods of low generation. However, he acknowledged that the project requires substantial funding, estimating a need for around $4.3 billion. KENGEN is actively engaging with donors and development partners to secure the necessary investments to increase the installed capacity, which currently stands at 1,726 MW.
The Role of Public-Private Partnerships
CS Wandayi underscored the significance of public-private partnerships in achieving the government’s energy goals. He noted that the collaboration with Adani Energies is a prime example of how the government seeks to leverage private sector expertise and investment to tackle pressing challenges in the electricity sector. “The government is keen on such partnerships, as they are essential for driving innovation and efficiency in our energy infrastructure,” he stated.
The CS’s remarks reflect a broader recognition of the need for collaborative efforts to address the intricate challenges facing Kenya’s electricity supply. The partnership with Adani Energies not only aims to enhance transmission efficiency but also to foster competition in the energy market, ultimately benefiting consumers through reduced prices.
Renewable Energy Focus
Wandayi’s vision extends beyond just improving transmission. He expressed the government’s commitment to increasing the share of renewable energy in the national grid from the current 90% to 100%. “We are focusing on enhancing our capacity to produce renewable energy,” he asserted, adding that this shift is vital for sustainability and reducing reliance on fossil fuels.
The CS also touched on the recent decline in fuel prices facilitated by petroleum deals, emphasizing that the government is determined to minimize costs for consumers. He stated, “Our days of dependency on thermal power are numbered, and we are focused on a future powered by renewable energy.”
Collaboration in Geothermal Exploration
Tourism and Wildlife CS Rebecca Miano also highlighted the importance of KENGEN’s initiatives, particularly in geothermal energy production. She pointed out that many geothermal fields are located within the Hell’s Gate National Park, emphasizing the potential for joint conservation projects that could promote tourism while contributing to energy generation. “We are working closely with KENGEN in geothermal exploration, and our collaborative efforts will help attract more visitors to our national parks,” she noted.
Conclusion
The defense of the Adani deal by CS Opiyo Wandayi marks a pivotal moment in Kenya’s quest for a reliable and affordable electricity supply. By addressing the critical issue of power losses through strategic investments and modern infrastructure, the government aims to create a more sustainable energy future.
With KENGEN’s ambitious strategic plan and the emphasis on renewable energy, Kenya is poised to transition towards a greener energy landscape. The collaborative approach involving public-private partnerships will not only enhance efficiency but also ensure that the benefits of this transformation are felt by consumers across the country. As the nation grapples with the demands of a growing economy and rising energy needs, the steps being taken today could define Kenya’s energy future for years to come.
