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{
"id": 30232,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/30232/?format=api",
"text_counter": 214,
"type": "speech",
"speaker_name": "Eng. M.M. Mahamud",
"speaker_title": "The Assistant Minister for Energy",
"speaker": {
"id": 373,
"legal_name": "Mohammed Maalim Mahamud",
"slug": "mohammed-mahamud"
},
"content": " Mr. Deputy Speaker, Sir, on Tuesday, 2nd August, 2011, Mr. Pesa requested me to make a Statement on the rising cost of power and frequent power rationing in the country. He said that in my Statement, I should clarify the following:- (i) Whether the African Development Bank has granted Kshs4 billion to procure three units and equipment to harvest geothermal power as an alternative source of energy in Menengai, Baringo, Turkana and other areas. Secondly, what immediate actions I am taking to ensure that my Ministry puts funds into good use in order to cushion Kenyans against the rising cost of power, as well as the power rationing. Thirdly, what measures were being put in place to generate more power, avoid power rationing and ensure that Kenyans, including residents of Migori Constituency who are prone to power interruptions, have access to cheap and reliable power. I beg to make the following Statement. The African Development Bank (ADB) has not granted Kshs4 billion to procure new rigs and equipment to harvest geothermal power as an alternative source of energy in Menengai, Baringo, Turkana and, indeed, other areas. However, discussions have been held with the bank. The management of the bank is in the process of preparing a board paper for extending a geothermal resource statement loan to Kenya equivalent to Kshs8 billion. Those funds, when availed, will largely be expended in drilling steam production wells. With regard to the rising cost of power and the frequent power rationing, I wish to clarify that, this has been occasioned by:- (a) Reduced contribution of hydro-electric power in the country’s electricity supply due to the current dry spell. That has led to the increased use of expensive oil based thermal power. (b) Delayed implementation of new generation capacity to match demand growth due to inability to raise on-time payment guarantees required by project development financial institutions before reaching financial closures. A number of outages affecting key power generating units have also contributed to the current power rationing. Those generators include a 60 megawatts gas turbine capacity whose installation in Nairobi had delayed for more than nine months. One of the two 30 megawatts turbines is to be commissioned this week, and the second by 31st August, 2011. Two, the Turkwell, Phase 3 megawatts generator number two, which has been out of service for maintenance since June 2011, is expected to be in service this week. In Mumias, a 26 megawatts generation facility which has been on and off for a long time is also expected to work. The impact of those outages is more severe in Western Kenyan where both Turkwell and Mumias are located. In addition, the grid connection of western Kenya to the rest of the country’s generation facilities is inadequate. As a result, voltages to western Kenya become depressed when power demand from the region is met from outside the region, necessitating rationing even when there is a surplus generation capacity within the rest of the grid. Immediate measures to address the power rationing in the short term include a 40 megawatts of emergency power capacity which will be installed in Muhoroni by the end of September, 2011. A further 50 megawatts of similar capacity will be installed at Embakasi, thus bringing the total emergency power capacity at Embakasi to 110 megawatts. With the installation of that capacity and prudent management of water in our hydro power dams, power rationing is expected to be discontinued by the end of September, 2011. In terms of medium-term measures to reduce the cost of electricity, we have embarked on the following: To provide adequate power at a lower cost in western Kenya, 80 megawatts of new generation will be installed at Muhoroni within the next 18 months. Another three IBP Power Plants are scheduled for commissioning at the Nairobi Metropolis by the fourth quarter of 2013. The long-term measures to reduce the cost of electricity include: Development of geothermal power plant, 316 megawatts. As part of the long-term solution to the country’s power needs, 280 megawatts of new geothermal generation will be commissioned at Ol Karia by the first quarter of 2013 and another 36 megawatts by 2014. To help evacuate additional power to western Kenya, a 220 KV double socket transmission line from Ol Karia to Kisumu via Lessos will also be commissioned by 2014. The Ol Karia plant will introduce reliable and cheap generation in the country’s mix and thus, reduce the overall power costs, while the transmission lines will facilitate delivery of power from Ol Karia and the rest of the grid to western Kenya. In parallel with these actions, development of other geothermal sites like Menengai is going on. Those sites will provide the country with low cost power in the long-term. With regard to wind power, a 380 megawatts wind power capacity will be commissioned by June, 2030; that is the one in Longorani in Marsabit. Other wind farms are also expected to be developed by 2015. We also plan, in the long-term, to develop, at least, 600 megawatts of coal fire capacity by 2015 using both local and imported coal. Thank you."
}