Most expensive power plants in Kenya

According to an official report that sheds light on the pricey power transactions that have been passed on to customers in the shape of exorbitant bills, Muhoroni Gas Turbine is the source of the nation’s grid’s most costly electricity, costing Ksh56.73 for every unit.
According to a thorough review of official data submitted to Parliament last week, Muhoroni Turbine is more expensive than Iberafrica Power, the second-most expensive generator, which sells a unit to Kenya Power for Ksh28.24. Rabai Power is third with a unit price of Ksh24.04.
After overcoming wind and hydro to become the second largest sources of electricity in March, thermal power generators made a significant comeback on the national grid, which has caused further pain to consumers after reversing a five-year trend of shutting down diesel plants that have been blamed for high power bills.
A government plan to revise wholesale tariffs in an effort to reduce them and relieve consumer pressure was rejected by the majority of power producers.
“To lower the cost of power, negotiation teams within the Ministry of Energy and Petroleum are getting ready to engage all power purchase agreements (PPAs). Negotiations are expected to begin in July and end in December 2023,” according to a report submitted to Parliament by Kenya Power.
To lessen the burden of the high expenses on consumers, a presidential task force in 2021 suggested that Kenya Power and the producers renegotiate their power purchase agreements.
The fifth most expensive electricity on the grid is sold by Gulf Power, where Kenya Power owns a stake thanks to its worker retirement benefits program, at Ksh23.23 per unit.
OrPower 4 Inc. is the most expensive of all the geothermal plants Kenya Power has leased, with a unit of its geothermal power costing Ksh14.33 from the state-owned KenGen, which provides the lowest power at Ksh4.71 per unit.
21 power producers have contracts with Kenya Power that last for 20 to 25 years.
According to the three-year tariff review, electricity rates increased on April 1 with an average increase of 15% to 20%.
The consumption fee for lifeline clients, who are in the lowest usage category, increased from Ksh10 to Ksh12.22 per unit.
After a protracted drought, increased use of the thermal plants resulted in an increase in the fuel surcharge, which further increased bills until the beginning of last month, when the charge and the forex adjustment decreased, causing an increase in electricity costs.
The figures also demonstrate that thermal power, the largest source of electricity in the national system, is three times more expensive per unit than geothermal power.
An average unit of geothermal energy costs Ksh8, while thermal plant electricity costs Ksh27.90. Power from solar and wind sources costs, respectively, Ksh15.73 and Ksh10.9 per unit.
However, Kenya Power uses power from thermal facilities to balance out the declining hydroelectric output, meet peak demand, and prevent disruptions in the event of a plant failure.
The Feed in Tariff gives clean energy like wind, solar, geothermal, and hydroelectricity priority.
At 45.21% as of May, geothermal energy had the largest percentage of the country’s electrical mix, followed by hydroelectricity (21.05%), wind energy (16.08%), solar energy (3.92%), and imports from Ethiopia and Uganda (5.29%).
When compared to power purchased from Uganda, which costs Ksh14.31 per unit, Ethiopian electrical imports cost Ksh9.13.
Kenya plans to gradually reduce its reliance on thermal power plants and expand its use of geothermal energy in order to reduce the rise in electricity prices.