Business News
Now firms generate own power
With erratic power supply and astronomical power tariffs proving major operational roadblocks, individual firms and other organisations are drawing plans to start generating their own power for their consumption while planning to sell surpluses to the national grid.
Among these companies are Kenya Petroleum Refineries Limited (KPRL), Mumias Sugar Company, Chemelil Sugar, and some tea factories. A recent nationwide power blackout that had far-reaching cost implications has enhanced this resolve among the companies.
“We did not have any damage to the equipment like earlier this year when a similar blackout cost us about Sh60 million to repair a machine,” said KPRL human resource manager, Mr Martin Wahome. “But the cost of using between eight to 12 megawatts of power a day, means that such an occurrence affects us greatly,” he said.
“The board has already approved a plan for us to generate our own power and we are targeting about 26 megawatts that will make us self-sufficient and even enable us to sell the remaining to the national grid. “What we are now looking at is the mode of generating the power and we have options between low speed diesel, gas turbines or burning coal,” he said.
Earlier, proposals had shown that KPRL will construct an integrated gas turbine power generator to produce between 20-24 megawatts of power for its internal use and for supply to the national grid, according to the plant’s manufacturing manager, Mr Andrew Harvey.
Mr Wahome said the actual cost of the project will be established once feasibility studies have been concluded, although it is expected to take about two years to be complete once it kicks off. “The use and application of gas turbines will reduce constraints normally faced by the refinery when large quantities of fuel gas are generated than can be consumed by the fired heaters,” Mr Harvey said.
KPRL, the second-largest consumer of electricity after Bamburi Cement Company, experiences frequent power surges, despite having direct supply from the Kenya Power and Lighting Company (KPLC).
Cost of power
The refinery’s power bill is normally between Sh20 million and Sh30 million a month. Last year when the cost of power skyrocketed, it was paying Sh50 million a month. The firm needs eight megawatts, and once the project achieves its optimum output, 16 extra megawatts will be available for sale to the national grid.
Coast Development Authority (CDA), in its 2008-2012 strategic plan, has drawn a programme to start power generation by tapping River Mwache, whose millions of litres of water, drain into the Indian Ocean.
Dr Nesbert Mangale, the CDA managing director, said that the Sh3.5 billion Mwache Dam Multipurpose project will generate 34 megawatts of power and already, the spot with a height of about 70 metres fall that is enough to turn some turbines has been identified.




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