The proportion of thermal energy fed into the national grid reached a four-year high in the first nine months, according to the Kenya National Bureau of Statistics (KNBS), due to a decline in electricity generated from hydro dams.
The data shows that Kenya Power added 1,232.03 gigawatt hours (GWh) to the grid during this period, increasing the proportion of thermal energy to 13% from 9.3% in the same period in 2021. The increase in thermal energy use was caused by drought, low water levels in hydro-power plants, disruptions to the Loiyangalani-Suswa transmission line, and unplanned outages at some of the Olkaria geothermal wells. The last time thermal energy made up a higher portion of the national grid was in the first nine months of 2018, at 7.8% or 1,287.02 Gwh.
Despite Kenya Power’s efforts to transition to cheaper and renewable energy sources, the increased use of thermal power plants has caused a setback. The costs of using these dirty diesel-run plants are being passed onto consumers in the form of a fuel adjustment surcharge, significantly adding to their electricity bills. According to the company’s latest annual report, they are still working towards reducing thermal generation and greening the energy mix. However, the proportion of hydro-power and geothermal in the national energy mix has slightly declined.
Thermal plants are being relied upon to meet demand and ensure stable supply, particularly during peak times. Still, the low rainfall that has impacted hydro levels has resulted in further reliance on these plants. The continued use of dirty fuel generators has negatively impacted Kenya Power’s efforts to provide clean and affordable energy to consumers. The high electricity charges have been a source of frustration for customers, with some of the costs attributed to idle capacity charges for electricity generated but not used.
Expensive Thermal Energy on Power Bills
The high cost of electricity bills in Kenya is due to several factors, including the Fuel Cost Charge (FCC) and compensation for foreign exchange fluctuations. The FCC, used by Kenya Power to pay thermal plants, nearly doubled to KES 6.79 in September 2022 from KES 3.88 a year earlier for consumers using up to 10kWh.
The government has attempted to lower reliance on thermal plants by investing in geothermal, wind, and solar sources and retiring Tsavo Power. Still, these efforts have not fully reduced the burden on consumers. The government has also attempted to review power purchase agreements but has been unsuccessful.
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