Anglututu
Elder Lister
Do you know that they are shutting them down, there were more than that!
I support renewable energy.
High Cost Of Thermal Elec In Kenya + Solar Silver Lining
- Thread starter shocks
- Start date
I support renewable energy.
they will never shut all of them down. Hapa Kenya if we only had two of them it would go along way in industrializing this country
Kasaman
Elder Lister
This coal plant was to power Lamu port
wrongturn
Elder Lister
that's the gospel they're singing but reality is even Europe is big on coal.
mr ShairMan
Lister
Alafu utaskia wakisema big 4 agenda,ease of doing business and other empty rhetoric knowing far too well why power is expensive in this country.
Aviator
Elder Lister
You guys are so naive I would have to call @Field Marshal to educate you.
IPPs are paid, not on the power produced, but on capacity installed. This becomes necessary to ensure peak demand is met in the event of an outage from mainstream producers, and two, investors get a worthy return on their investment. So Kengen has the highest capacity. It also has the highest production. Hence the low cost per unit.
On the other hand, diesel generators have the lowest production, despite a high (not as much as Kengen) capacity, hence their cost per unit is extremely high. It isn't a bad thing.
Think of it this way. You are connected to Kenya Powerless and you buy electricity at 25/ per unit. Over the month, you use 20 units thus you pay 500.
However, within the month, there was one day of blackout. Fortunately, you have a generator. You fueled it for 200 and you put it on. It served you overnight and you consumed one unit. You factored it's depreciation at 300.
Now, your analysis will show that you bought units from Kenya Power at 25bob and at 500 bob from your generator.
Will you throw away your generator?
The guy in mandera runs the same generator the whole day and extracts the 10 units the generator is able to produce. For 500bob still. So his cost per unit is 50.
That explains why IPPs in areas well served have been paid a higher cost per unit compared to those in remote areas.
IPPs are paid, not on the power produced, but on capacity installed. This becomes necessary to ensure peak demand is met in the event of an outage from mainstream producers, and two, investors get a worthy return on their investment. So Kengen has the highest capacity. It also has the highest production. Hence the low cost per unit.
On the other hand, diesel generators have the lowest production, despite a high (not as much as Kengen) capacity, hence their cost per unit is extremely high. It isn't a bad thing.
Think of it this way. You are connected to Kenya Powerless and you buy electricity at 25/ per unit. Over the month, you use 20 units thus you pay 500.
However, within the month, there was one day of blackout. Fortunately, you have a generator. You fueled it for 200 and you put it on. It served you overnight and you consumed one unit. You factored it's depreciation at 300.
Now, your analysis will show that you bought units from Kenya Power at 25bob and at 500 bob from your generator.
Will you throw away your generator?
The guy in mandera runs the same generator the whole day and extracts the 10 units the generator is able to produce. For 500bob still. So his cost per unit is 50.
That explains why IPPs in areas well served have been paid a higher cost per unit compared to those in remote areas.
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shocks
Elder Lister
Umejaribu, lakini explain the difference in rates between iber africa and triumph
Aviator
Elder Lister
The two companies were paid almost the same amount of money. The difference in unit cost is simply because KPLC took more power from IberAfrica than from Triumph- a decision most likely made by a computer after some technical analysis at the time and point where power was needed.
upepo
Elder Lister
Payment to IPPs has two components: a fixed component for the installed capacity and a variable component for the power produced. That said, research has shown that the IPPs in Kenya make the highest returns by far compared to other countries. That means their services are priced above average for the country.
Aviator
Elder Lister
If you recall, IPPs came in when we had a serious shortage. And they were able to negotiate lucrative looong agreements with Kenya Powerless. They are today enjoying the fruits.
DeepInYourMind
Elder Lister
And they are also facing an energy crisis
DeepInYourMind
Elder Lister
In developed countries, before coal people used firewood. So the use of coal has been good for the environment in terms of allowing forest cover to grow. In Kenya if coal was a thing, there would be much less need for chopping down trees for charcoal
DeepInYourMind
Elder Lister
The developed countries like USA and China actually account for majority of carbon emissions, developing countries like Kenya only a comparatively tiny amount. Going 'green', which even the developed nations haven't figured out, will only slow down development due to high energy costs
Anglututu
Elder Lister
Yeah but coal isn't the only option to get this energy, you should see the effects of mining coal then we continue with the debate.
In the time we living in, there's something called the environmental sustainable way of doing business. It's still a new concept for most countries and companies, but you're gonna be seeing and hearing about it as days go by.
Meaning whatever actions we take to do biz, they should be sustainable and not have adverse effects on the environment.
That's why the world is turning its back on coal.
Germany has hacked this solar revolution. There are villages running on solar and earning money by supplying surplus back to the grid.
This is just one example of solar.
We have wind turbines, we have wave turbines that are placed on water, and many other options apart from coal.
It's just a matter of willpower and effort if we want to have sustainable energy.
upepo
Elder Lister
Hizi ideals zilikatalia kwa school textbooks. The real world operates differently.
Ona wale unasifu!!!
I will not pretend to be very knowledgeable in matters power but my personal opinion is we can’t develop as quickly as we would want to with this “renewable energy” crap that the west are trying to push after they have decimated the environment and fully developed while at it!