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Forum => Kenya Discussion => Topic started by: RV Pundit on July 04, 2018, 02:22:54 PM

Title: Kenya uses measily 1800MW
Post by: RV Pundit on July 04, 2018, 02:22:54 PM
Time to electrify the train - find ways & means to use the extra electricity.
https://www.businessdailyafrica.com/economy/Electricity-demand--crosses-1-800MW-mark/3946234-4645308-ur8eup/index.html
Title: Re: Kenya uses measily 1800MW
Post by: Omollo on July 04, 2018, 02:51:17 PM
They can start by reducing the cost. This will encourage ordinary citizens to start using it for cooking - something many cannot afford.

Many small jua kali like industries resort to diesel and other forms of energy because electricity is too expensive. For example I have seen similar small industries in India and Pakistan using electricity.
Title: Re: Kenya uses measily 1800MW
Post by: RV Pundit on July 04, 2018, 04:30:35 PM
Yes about time they focused on cheap coal based power - and try to encourage demand for electricity - people should be able to cook githeri with electricity.
Quote from: Omollo on July 04, 2018, 02:51:17 PM
They can start by reducing the cost. This will encourage ordinary citizens to start using it for cooking - something many cannot afford.

Many small jua kali like industries resort to diesel and other forms of energy because electricity is too expensive. For example I have seen similar small industries in India and Pakistan using electricity.
Title: Re: Kenya uses measily 1800MW
Post by: Globalcitizen12 on July 04, 2018, 04:31:47 PM
Industrialization is where the demand should come from
Title: Re: Kenya uses measily 1800MW
Post by: Globalcitizen12 on July 04, 2018, 04:33:23 PM
Moi did more re on energy than any other president ..moi did more to encourage sweat shops..he took advantage of avoa and opened up naivasha for pollution
Title: Re: Kenya uses measily 1800MW
Post by: hk on July 04, 2018, 06:38:13 PM
Quote from: RV Pundit on July 04, 2018, 02:22:54 PM
Time to electrify the train - find ways & means to use the extra electricity.
https://www.businessdailyafrica.com/economy/Electricity-demand--crosses-1-800MW-mark/3946234-4645308-ur8eup/index.html
We almost have universal electricity connection something jubilee harps on as an accomplishment yet consumption is barely increasing. The priority should've been retiring expensive thermal and evacuating cheaper wind,geothermal and solar from generators to the grid. This would have enabled electricity connections driven by demand without the subsidy that's driving up price of power for middle class. 
This also highlights lack of purchasing power for majority of kenyans. Build it and they'll come isn't working. We need an economic model that's starts with demand then supply. But that wouldn't be grandiose enough for politicians to showcase. In other news the private sector has stagnated https://www.businessdailyafrica.com/markets/marketnews/Private-sector-activity-slows-in-June/3815534-4645910-kyll06z/index.html .
Title: Re: Kenya uses measily 1800MW
Post by: RV Pundit on July 04, 2018, 07:06:44 PM
I think universal access is good - a great thing - now demand for electricity is something else - the power we generate is very expensive - geothermal for instance cost about 7-9 shs - that is price KPLC buys from - Solar & Wind are even more expensive and not stable (therefore you need some base load). The cheapest power will come from hyrdo ( with drought risk) and coal. Hyrdo is 3shs - coal - we can go as low as 1-2shs per unit. Therefore we need to buck this renewable energy trend. Ethiopia power is produced at 3shs and sold at 6shs. Well that doesn't seem to help with power consumption there..so it complicated situation.

Anyway I think after universal access is achieved - we are nearly there - when we cross 90% - we can start focusing on demand side issues (price+quality) --- and that can only happen if KPLC get some competition. The so called CAK (Competition Authority) should crack the whip. Kentraco should bulk buy power and then distributors can compete for last mile. Uganda already do this - why we can't do it in kenya?And we need to get out of those IPP contracts that gurantees power producers prices for many years.

Quote from: hk on July 04, 2018, 06:38:13 PM
We almost have universal electricity connection something jubilee harps on as an accomplishment yet consumption is barely increasing. The priority should've been retiring expensive thermal and evacuating cheaper wind,geothermal and solar from generators to the grid. This would have enabled electricity connections driven by demand without the subsidy that's driving up price of power for middle class. 
This also highlights lack of purchasing power for majority of kenyans. Build it and they'll come isn't working. We need an economic model that's starts with demand then supply. But that wouldn't be grandiose enough for politicians to showcase. In other news the private sector has stagnated https://www.businessdailyafrica.com/markets/marketnews/Private-sector-activity-slows-in-June/3815534-4645910-kyll06z/index.html .
Title: Re: Kenya uses measily 1800MW
Post by: Omollo on July 04, 2018, 11:21:17 PM
Quote from: RV Pundit on July 04, 2018, 04:30:35 PM
Yes about time they focused on cheap coal based power - and try to encourage demand for electricity - people should be able to cook githeri with electricity.

What would be the point of developing an expensive and dirty source of electricity when the idea is to make it cheap enough for the poor? There are cheaper and cleaner sources such as Solar and Wind Energy. The abundant sun and wind thanks to the geographical location of The Fatherland grants an unlimited supply. If countries with the worst possible geographical locations can now boast of using more renewable sources than the dirty resources can make it, we should do even better.

KPC should dump the expensive Thermal sources provided by Gichuru and his camarilla. These are responsible for the current high tariffs.
Title: Re: Kenya uses measily 1800MW
Post by: Omollo on July 04, 2018, 11:23:25 PM
That is the way to go. Next time you have your regular meeting of Kikuyus, please kindly ask Kirubi and Gichuru to let Kenyans have cheap electricity to use to cook githeri as Pundit rightly say.

Quote from: hk on July 04, 2018, 06:38:13 PM
Quote from: RV Pundit on July 04, 2018, 02:22:54 PM
Time to electrify the train - find ways & means to use the extra electricity.
https://www.businessdailyafrica.com/economy/Electricity-demand--crosses-1-800MW-mark/3946234-4645308-ur8eup/index.html
We almost have universal electricity connection something jubilee harps on as an accomplishment yet consumption is barely increasing. The priority should've been retiring expensive thermal and evacuating cheaper wind,geothermal and solar from generators to the grid. This would have enabled electricity connections driven by demand without the subsidy that's driving up price of power for middle class. 
This also highlights lack of purchasing power for majority of kenyans. Build it and they'll come isn't working. We need an economic model that's starts with demand then supply. But that wouldn't be grandiose enough for politicians to showcase. In other news the private sector has stagnated https://www.businessdailyafrica.com/markets/marketnews/Private-sector-activity-slows-in-June/3815534-4645910-kyll06z/index.html .
Title: Re: Kenya uses measily 1800MW
Post by: gout on July 05, 2018, 05:38:15 PM
This Lamu coal thing is dead with a dying Kirubi and the corruption pipeline being choked.
Title: Re: Kenya uses measily 1800MW
Post by: hk on August 06, 2018, 08:47:19 AM
Jubilee government accomplishments  http://www.theeastafrican.co.ke/business/Power-tariffs-fiasco-actually-raises-costs-for-Kenyan-industry/2560-4698216-3pdo84/index.html  this is unmitigated disaster.Yet somehow the government is supposedly focused on increasing manufacturing.
Title: Re: Kenya uses measily 1800MW
Post by: vooke on August 06, 2018, 11:58:57 AM
I agree with Ndii. We have excess capacity of very expensive power which is as good as not there

Jubilee promised to lower power cost but they have almost doubled it. It is not in the interest of these crooks to lower it,especially given the long term deals with IPPs
?s=21
Title: Re: Kenya uses measily 1800MW
Post by: Kadudu on August 06, 2018, 01:01:27 PM
You forgot to mention that Mama Ngina is a major shareholder in KPLC.

Quote from: vooke on August 06, 2018, 11:58:57 AM
I agree with Ndii. We have excess capacity of very expensive power which is as good as not there

Jubilee promised to lower power cost but they have almost doubled it. It is not in the interest of these crooks to lower it,especially given the long term deals with IPPs
?s=21
Title: Re: Kenya uses measily 1800MW
Post by: hk on August 06, 2018, 01:46:09 PM
Quote from: vooke on August 06, 2018, 11:58:57 AM
I agree with Ndii. We have excess capacity of very expensive power which is as good as not there

Jubilee promised to lower power cost but they have almost doubled it. It is not in the interest of these crooks to lower it,especially given the long term deals with IPPs
?s=21
We have excess capacity yet we'r building more power generators without retiring expensive thermal. And why not adapt a free market system where supply and demand influence prices instead of all those preset longterm contracts. More importantly why can't kenya just import cheap power from Tanzania gas fired power generators. A transmission line from TZ would probably be cheaper than geothermal.
Title: Re: Kenya uses measily 1800MW
Post by: Nefertiti on August 06, 2018, 02:08:17 PM
Wind, solar n gas are the way to go... as cheap as possible but not fossil coal. Energy is longterm infrastructure like roads and cannot be discounted economically. What should come first - infrastructure or factories? Concessional projects have a sunk cost which impacts the rate for some time. Once the loans are paid off we should be good. Some new FDIs or SEZs can enjoy GoK power waiver.

We don't have too much power we have too little manufacturing and industry.
Title: Re: Kenya uses measily 1800MW
Post by: hk on August 06, 2018, 03:37:28 PM
Quote from: Robina on August 06, 2018, 02:08:17 PM
Wind, solar n gas are the way to go... as cheap as possible but not fossil coal. Energy is longterm infrastructure like roads and cannot be discounted economically. What should come first - infrastructure or factories? Concessional projects have a sunk cost which impacts the rate for some time. Once the loans are paid off we should be good. Some new FDIs or SEZs can enjoy GoK power waiver.

We don't have too much power we have too little manufacturing and industry.
Cheap power or just competitive power prices is a prerequisite for manufacturing. Cheap power will lead to higher usage and a growing manufacturing sector. Kenya as a market is big enough to sustain a big enough manufacturing base especially for basics. There's a reason why serious manufacturers in kenya are putting up their own power generating units just to survive 
Title: Re: Kenya uses measily 1800MW
Post by: Nefertiti on August 07, 2018, 12:25:00 PM
Quote from: hk on August 06, 2018, 03:37:28 PM
Quote from: Robina on August 06, 2018, 02:08:17 PM
Wind, solar n gas are the way to go... as cheap as possible but not fossil coal. Energy is longterm infrastructure like roads and cannot be discounted economically. What should come first - infrastructure or factories? Concessional projects have a sunk cost which impacts the rate for some time. Once the loans are paid off we should be good. Some new FDIs or SEZs can enjoy GoK power waiver.

We don't have too much power we have too little manufacturing and industry.
Cheap power or just competitive power prices is a prerequisite for manufacturing. Cheap power will lead to higher usage and a growing manufacturing sector. Kenya as a market is big enough to sustain a big enough manufacturing base especially for basics. There's a reason why serious manufacturers in kenya are putting up their own power generating units just to survive

GoK should subsidize power for manufacturers - like SEZs,
etc - that's what I'm saying. The solution is not to shut down excess capacity, as manufacturing grows it'll come in handy.  Infrastructure and industrialization is a chicken and egg problem.
Title: Re: Kenya uses measily 1800MW
Post by: vooke on August 07, 2018, 03:01:26 PM
Dear Robina,
They need not subsidize,just lower cost of production. You only subsidize when you are at the ,imits of efficiency. About increasing capacity, I think when you are doing more than 40% of your peak output, you have enough to take care of any rising demand for the next 5-10 years. So adding more is just wastage.