5 July, 2011
Kenya Power plans to invest USD 1 billion in its grid network over ten years to bring down inefficiencies and reduce costs. The company plans to spend majority of the planned capex on transmission lines and automation of systems. In urban areas, Kenya Power will use underground cables and insulated cables in rural regions. Kenya Power is working on developing a plan to achieve the long-term power demand of 15,000 MW by 2030.
The company also plans to upgrade a transmission line to 132 kV in the Coast region to boost energy supply to Base Titanium Company in Kwale and residents of South Coast. It has allocated KES 20 billion for underground cables to replace the overhead power lines. Further, KES 500 million will be invested in automating its power distribution in Nairobi and Mombasa. The company also plans to expand its transmission to the North Coast to serve the proposed Lamu Port.
Kenya’s energy sector requires over KES 400 billion in the next five years to meet the rising demand for power in the country, expected to reach 2,029 MW by 2014 from the existing 1,599 MW. For 2011/12, the Kenyan government has allocated KES 15.6 billion to expansion of the electricity transmission system, KES 16 billion to geothermal development and KES 5.6 billion to rural electrification.
* KES 1 = USD 0.01