The utility firm’s managing director, and CEO, Dr. Ken Tarus has predicted a decrease in the cost incurred by Kenya to purchase power from across foreign borders from Sh12 per kilowatt-hour to Sh6 per kilowatt-hour.

 

The Kenyan energy sector have been working on a new system that would see the government purchase power from independent producers as opposed to the current feed-in-tariff policy, which gives the producer full control on matters of pricing.

 

 “At the moment we are still under the feed-in tariffs and under this policy, we have the unsolicited bids. Thus any investor will come in with what they perceive as their right price,” Tarus told a journalist.

 

Tarus also spoke of the positive results achieved in the initial stages of the program. Also revealing that the pick of the bids submitted will be made based on the criteria of competition. He also said that the auction could take place at the end of the current calendar year or sometime next year.

 

Kenya is also undergoing several installations that will further increase their sun-powered renewable energy sources in the upcoming years.

 

Kenya Power also signed a big 20-year power purchase agreement two years back with four solar companies- Radiant, Eldosol, Malindi Solar and Alten to supply the nation with 160 Megawatts of power. 

 

The deals generated mayhem at the Consumer Federation of Kenya (Cofek), which questioned the rationale of buying power at $0.12 (about Sh12) per kilowatt when globally the price had dropped to less than $0.08 (about Sh8).

 

Source : Business News Africa