The 70megawatt power purchase agreement (PPA) between the two companies will last for 25 years and will see Kenya Power buy electricity from Akiira at Sh9.3 per unit (9.23 US cents), which is about half the current cost of thermal power.

 

Kenya Power Managing Director, Ben Chumo confirmed the reports and said that the additional megawatts will be added to the national grid by December 2016.

 

“The 70 megawatts from Akiira geothermal plant in Kenya are expected to be added to the grid by December 2016 in line with our energy targets,” Kenya Power managing director Ben Chumo said.

 

In another agreement, Kenya Power also signed a PPA with Kleen Energy, owned by local investors from Embu, to generate six megawatts of power by August next year at a feed-in-tariff of Sh9.2 per unit (9.20 US cents). Kleen Energy requires a firm to construct, own, operate and maintain the project, with Kenya Power acting as the buyer of the power generated.

 

Centum owns a 37.5 per cent equity stake in Akiira, with the remaining 62.5 per cent owned by American firms — Ram Energy and Marine Power — and Danish Frontier Markets.

 

However, Kenya power will buy electricity from Akiira geothermal plant in Kenya at Sh9.3 per unit,a cost that is slightly higher than what Kenya Electricity Generating Company (KenGen) sells to Kenya Power.

Source : constructionreviewonline.com