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THE STANDARD
BUSINESS NEWS
Thermal power plant. [Courtesy]
Thermal power plants continue to be lucrative to investors.
This is despite sustained campaigns to do away with costly power generators, in a move meant to reduce the cost of electricity and harm to the environment as well as transit the country to renewable energy.
The lucrative nature of the thermal power is seen in the latest bid by Danish energy giant AP Moller to buy Thika Power Plant, a heavy fuel oil-fired generator near Thika town.
The plant, which has a power purchase agreement (PPA) with Kenya Power running up to 2034, has a power generating capacity of 87 megawatts (MW).
Kenya Power in U-turn on bills increase push
Friday March 12 2021
By VICTOR JUMA
Summary
The Auditor-General says the electricity distributor has identified a reduction of capacity charges – paid to power firms regardless of generation – as one of the key actions that will pull it out of deep losses.
The electricity distributor says the move will also serve to bring down electricity bills.
This marks a U-turn by a utility that has since 2018 been pushing for an increase in electricity prices by up to a fifth.
Kenya Power #ticker:KPLC is seeking to lower fixed charges in contracts signed with electricity generating companies, a move that will boost its financial performance and lead to reduced power bills for consumers.