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The Numbers:
-Kenya’s last mile project have seen an increase connectivity from 35 percent to 50 percent in the last 3 years
-Only 39 percent of African continent according to the report has access to power while Kenya has only15.1 percent connected with electricity
–Recent power tariff review by KPLC as at June shows that houses using between 51-1,500units of power pay Sh12.75 per unit from Sh13.68 they were paying previously
By Brian YatichKenyans can expect to pay higher prices for electricity in the coming years despite the country’s ambitious plan to generate 5,000MW plus of power by 2017, new survey predicts.
A study by Audit and Consultancy firm PricewaterhouseCoopers (PWC) Kenya reveals that part of the cost to set up power plants especially by Independent Power Producers (IPPs) will be borne by electricity consumers since the current infrastructure is not adequate to meet the extra power supply.
“Africa faces huge electricity demand challenge, with existing infrastructure being insufficient to meet current requirements, let alone future growth even though installed power capacity is expected to increase,” reads the report in part.
The survey which highlighted on electricity supply growth and industrialization demand in Africa’s power sector further shows that even though power capacity is expected to increase by two-fold in the next three years, millions of consumers will remain without power.
Kenya’s ambitious plan is poised to result in further addition of 17,000 MW by 2030 from the current installed capacity of 2,200MW to the national grid which is expected to be achieved through tapping into renewable energy sources, but this will only be beneficial to large power consumers such as industries, according to Kuria Muchiru- advisory partner at PWC.
Muchiru says consumers should expect an increase in their end-user power tariffs since power plants will pass on the cost of their investments to users even though there will be no industries to consume the additional capacity.
“It might seem a bit ambitious but the increase in megawatt capacity will happen, but who will consume it. The possibility of excess capacity is real. Industries are reluctant to come on board since there are no proper infrastructures in place to attract investments therefore it means power plants will incur costs while setting up which will eventually be passed on to consumers,” he said.
Editing By Steve Umidha.