Kenya Power and Lighting Company (KPLC) has warned that the growing share of wind and solar power in the national electricity mix could increase the cost of electricity, raising the possibility of higher costs for consumers.
In a statement on Tuesday, August 11, Kenya Power said it is incurring additional costs to stabilize the national grid whenever wind and solar power generation suddenly rises or falls.
Kenya Power said variable renewable energy sources currently account for 34 per cent of the total energy mix during peak daytime demand of 1,900 megawatts (MW) and 36 per cent during low demand of 1,200MW.
The company said the intermittent nature of wind and solar power affects the frequency and voltage of electricity supplied through the national grid.
When production from the two sources drops or rises suddenly, Kenya Power has to bring in other generation plants to maintain a stable electricity supply.
According to the utility firm, the additional generation comes at an extra cost, which is eventually reflected in the cost of electricity paid by consumers.
Kenya Power Raises Concern Over Renewable Energy Growth
Kenya Power Managing Director and Chief Executive Officer Dr Joseph Siror said the country needs to carefully manage the amount of variable renewable energy connected to the national grid.
Siror said global benchmarks point to a limit of 15 per cent of a grid’s total firm capacity for variable renewable energy.
Kenya’s current system, however, has seen the share of variable renewable energy rise to more than 20 per cent, according to the Kenya Power chief.
He said the increase has been supported by the take-or-pay model used in power purchase agreements.
Under the arrangement, Kenya Power is required to pay for electricity from contracted generators based on the terms of their agreements, even when the power is not fully required at a particular time.
He added that the intermittent nature of wind and solar means Kenya Power has to dispatch and pay for other generators to maintain grid stability.
“Global benchmarks point to a limit of 15% of the grid’s total firm capacity limit for VRE. Our current system under the take-or-pay model of power purchase has led to an increase in VREs to over 20% against a recommended average of 15%,” Siror said.
“Given the intermittent nature of wind and solar, we have no option but to dispatch and pay for generators, increasing the overall cost of power.”
Also Read: Full List of Kenya Power’s Top Shareholders and Their Ownership Stakes
Why Token Prices Could Be Affected
Kenya Power said it currently dispatches additional generation plants at extra cost when variable renewable energy production suddenly changes.
The company said the additional spending is necessary to prevent a collapse of the grid and maintain a reliable electricity supply.
However, the extra generation costs increase the overall cost of power, which could eventually affect consumers.
This means households that rely on prepaid electricity tokens could face higher costs if the additional expenses are passed on through electricity charges.
Also Read: Who Runs Kenya Power? Full List of KPLC’s Top Leaders
Kenya Power Calls for More Stable Power Sources
The utility has called for increased investment in generation sources that can provide stable electricity when wind and solar output falls.
Siror said battery storage systems could help manage fluctuations from renewable energy sources but noted that they also face challenges when wind and solar production drops.
He said geothermal and hydropower provide greater stability and can help the grid recover and continue operating when intermittent sources are unavailable.
“Therefore, investments in geothermal and hydro offer greater grid stability and ensure the grid can recover and remain productive when intermittent sources are unavailable,” Siror said.
Kenya Has Highest VRE Dependence in Region
Kenya Power said Kenya has the highest dependence on variable renewable energy sources among countries in the region.
Within the Eastern Africa Power Pool, Egypt’s variable renewable energy share stands at 10.4 per cent, followed by Ethiopia at 5.3 per cent, Uganda at 4 per cent and Tanzania at 1.2 per cent.
Kenya Power said about 80 per cent of the country’s energy mix currently comes from baseload sources, including geothermal, hydropower, electricity imports and thermal generation.
The company has called for an increase in baseload generation, which it says is more stable and less susceptible to sudden drops in production.
Power Projects Planned to Support the Grid
Kenya Power listed several baseload projects expected to add more stable generation capacity to the national grid.
The projects include KenGen’s Olkaria I Unit 6, with 61MW; KenGen Olkaria 7, with 80MW; Globeleq Menengai, with 35MW; OrPower 22 Menengai, with 35MW; 200MW of electricity imports from Ethiopia; Paka Silali, which has been fully drilled, with 100MW; and Nabuyole, with 28MW.
The company also said plans to raise the level of the Masinga Dam by 1.5 metres are expected to increase electricity generation by 83 gigawatt-hours (GWh) per year.
Other baseload generation projects in the pipeline include a planned Liquefied Natural Gas (LNG) power plant, proposed to start with 300MW, the High Grand Falls project with 700MW and Karura Falls with 90MW.
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