MPs identify transmission upgrades to save consumers billions

Lawmakers have identified electricity transmission projects they want the government to speedily execute to ease Kenyans’ burden of high electricity costs.

After an inquiry into why Kenyans pay more for electricity, the Energy Committee of the National Assembly has identified 18 projects they say would save Kenya Power customers Sh6 billion they currently pay annually.

The money, which follows losses of units of electricity during transmission, is always loaded on customers. This is despite customers having nothing to do with the old infrastructure that is cited as the main reason for the system losses.

As such, the committee chaired by Mwala MP Vincent Musau wants the Energy ministry to prioritise and fast-track the completion of the transmission lines and substations. They include the Sondu-Homa Bay-Ndhiwa transmission line, saying it is key in stabilising power supply in Western Kenya.

Narok-Bomet line has also been positioned as would reduce the dependency of Western Kenya on the Muhoroni gas turbines.

MPs also hold that the Rabai-Kilifi transmission line and the Mariakani substation would reduce the dependence on thermal generators.

When completed, the line and substation would help evacuate power from Olkaria to the Coast.

MPs have also listed the Turkwel-Ortum line to help evacuate power from the Turkwel hydro-dam and the Garsen-Hola-Bura line as key to supply reliable power to Hola, Bura and the surrounding regions.

The committee has also asked the Opiyo Wandayi-led ministry to consider building the Nanyuki-Isiolo line, saying it would improve power reliability and supply voltages in Nanyuki and Kiganjo.

MPs also say the Nairobi Ring substations – at Isinya, Athi River, Kimuka and Malaa, would help provide an alternative power supply route to the Nairobi metropolitan region.

“It will relieve overloaded substations,” the committee report reads, even as MPs pressed for the completion of the Lessos-Tororo Interconnector project.

“This will provide an avenue for power trade in the Eastern Africa power pool, besides providing grid stability within the region,” the committee said.

Also on the list is the Kamburu-Embu-New Thika-Ruaraka line, which is hailed as would improve supplies in Nairobi region and reduce load on Dandora high voltage lines.

Apart from the proposed projects, MPs also want the ministry to prioritise nine projects nearing completion under the public-private partnerships model.

“This will enable the provision of a timely evacuation of power to the grid once complete and revamp of the aging transmission network to improve reliability and reduce system losses,” MP said.

They are the Kiambere-Maua-Isiolo line, Kisumu-Bondo-Rangala-Busia-Mnyaga line, Wajir-Mandera line, Kitale-Tongaren-Webuye-Musaga line, Kilifi-Mtwapa-Mariakani line and Marsabit-Moyale line. Also in the list is the Turkwel-Lodwar-Lokichogio line, Kipevu-Mbaraki line and substation, and the Garissa-Habaswein line.

Some of the projects were to be executed by Indian conglomerate Adani Energy whose engagements in the Kenyan ventures have been terminated.

Among the concerns were that the project would lead to an increase in the cost of electricity when the investor moved to recoup his investments.

Besides the mega projects, MPs want Kenya to within three years, put in place measures that would ensure the losses are measured accurately.

The committee also recommended that Kenya Power installs high-efficiency low-loss transformers, advanced metering systems, introduce smart grid technologies, and develop a power system that lowers the system losses.

The losses hit 23 per cent in December yet are supposed to be 14.5 per cent of the transmitted electricity. “The measures would save the consumer approximately Sh6 billion annually which would otherwise be recouped through customer billings,” the Musau-led team said.

MPs also want energy regulator Epra to renegotiate terms with Independent Power Producers (IPPs) with a view to realising a more competitive rate.

The committee conducted the inquiry following a statement sought by Laikipia Woman MP Jane Kagiri on why electricity was expensive in the country.

MPs further want Epra to implement a standard operating procedure between KP, IPPs and heavy fuel oils suppliers to prevent losses through overpayment and underpayment of fuels supplied to IPPs.

There are concerns that the variations are often passed on to the consumer, with MPs seeking to have the prices charged by the HFO suppliers to be linked to the price reviews that Epra publishes every month.

Kenya Power has also been told to consider tapping from green energy sources amid the push that the thermal plants (mostly by IPPs) be retired.

Kenya Power’s latest financial results released Tuesday show the power retailer paid independent producers Sh150.6 billion in the year ended June 30, 2024, up from Sh143.58 billion.

“This growth was driven by additional units purchased to support rising demand, as well as the high exchange rate that prevailed earlier in the financial year,” Kenya Power said.