Post by wanyee on Dec 7, 2016 22:15:52 GMT 3
The Proposed Lamu Coal Power Plant
This "white elephant" is based on inflated projections, in order to justify its construction.
According to Hindpal S. Jabbal, an authority on Kenya's power sector and a former chairman of the Energy Regulatory Commission (ERC), Kenya's GDP has grown by about 5.4 per cent over the past three years, and demand for electricity by about 6 per cent.
This is against the highly exaggerated projections of 10 per cent and 15 per cent, respectively, which inform the plan.
Furthermore, in the period since the project was launched, almost 650 megawatts (MW) — 400MW of geothermal power and 250MW from three medium-speed diesel (MSD) thermal plants (one at Thika and two at Athi River) — have been added to the national grid. Yet, peak demand over this period has increased by only 232MW, despite Kenya Power connecting 2.6 million new customers to the grid.
Thus, the 250MW MSD plants installed by three different independent power producers (IPPs) have virtually become redundant, yet they attract close to $60 million (Sh6 billion) a year in idle capacity charges.
This has resulted in an electricity tariff increase of about Sh1/kWh, which was passed on to customers in 2014.
It is very likely that power costs could increase by another Sh3-Sh4/kWh if the 1,000MW Lamu Coal Plant project goes ahead as planned.
This plant, estimated to cost about $2 billion (Sh200 billion), will attract idle capacity charges of about $360 million (Sh36 billion) a year. Therefore, its construction cannot be justified for the next 14 years to 2030 for lack of adequate demand to operate the plant economically at base-load.
(Ref: www.standardmedia.co.ke/mobile/amp/article/2000211395/we-can-t-blame-others-for-high-cost-of-electricity-if-we-fail-to-plan-properly?pageNo=1)
It is also worth noting that NO country in the world has ever had a coal plant, WITHOUT exploiting its own coal reserves. The coal that will be used to power the Lamu coal plant will be imported from South Africa.
Last, but certainly not least, it goes without saying that a coal plant in such an ecologically sensitive area as Lamu - the oldest Swahili settlement on the East African Coast and a UNESCO Heritage site - will face serious health and environmental impacts.
See also: Lamu residents oppose Sh200bn coal power project - Daily Nation www.nation.co.ke/counties/lamu/Lamu-coal-power-project-demo/3444912-3478004-shf5fg/
www.madaraka.net
This "white elephant" is based on inflated projections, in order to justify its construction.
According to Hindpal S. Jabbal, an authority on Kenya's power sector and a former chairman of the Energy Regulatory Commission (ERC), Kenya's GDP has grown by about 5.4 per cent over the past three years, and demand for electricity by about 6 per cent.
This is against the highly exaggerated projections of 10 per cent and 15 per cent, respectively, which inform the plan.
Furthermore, in the period since the project was launched, almost 650 megawatts (MW) — 400MW of geothermal power and 250MW from three medium-speed diesel (MSD) thermal plants (one at Thika and two at Athi River) — have been added to the national grid. Yet, peak demand over this period has increased by only 232MW, despite Kenya Power connecting 2.6 million new customers to the grid.
Thus, the 250MW MSD plants installed by three different independent power producers (IPPs) have virtually become redundant, yet they attract close to $60 million (Sh6 billion) a year in idle capacity charges.
This has resulted in an electricity tariff increase of about Sh1/kWh, which was passed on to customers in 2014.
It is very likely that power costs could increase by another Sh3-Sh4/kWh if the 1,000MW Lamu Coal Plant project goes ahead as planned.
This plant, estimated to cost about $2 billion (Sh200 billion), will attract idle capacity charges of about $360 million (Sh36 billion) a year. Therefore, its construction cannot be justified for the next 14 years to 2030 for lack of adequate demand to operate the plant economically at base-load.
(Ref: www.standardmedia.co.ke/mobile/amp/article/2000211395/we-can-t-blame-others-for-high-cost-of-electricity-if-we-fail-to-plan-properly?pageNo=1)
It is also worth noting that NO country in the world has ever had a coal plant, WITHOUT exploiting its own coal reserves. The coal that will be used to power the Lamu coal plant will be imported from South Africa.
Last, but certainly not least, it goes without saying that a coal plant in such an ecologically sensitive area as Lamu - the oldest Swahili settlement on the East African Coast and a UNESCO Heritage site - will face serious health and environmental impacts.
See also: Lamu residents oppose Sh200bn coal power project - Daily Nation www.nation.co.ke/counties/lamu/Lamu-coal-power-project-demo/3444912-3478004-shf5fg/
www.madaraka.net