Home SK - Stocks, Property, Investment Chamas - Investment Groups BIZ - Small Business Soko - Market Wazua Life About Wazua
SIGN IN REGISTER
Thursday, Nov 15, 2018
NellyData
LATEST DISCUSSIONS
Treasury Bills and Bonds [1000]
Homeownership journeys [22]
Madness at the NSE [1608]
Kenya Airways...why ignore.. [11310]
KCB 2018 and Beyond [102]
Kenya Economy Watch [1932]
What are you reading .... [6]
Insightful take on Nairobi Real Estate [119]
Cytonn looks to list on GEMS [214]
Exchange Bar: Results forecast [1708]
Equity Group HY 2018 [32]
Kiambu raises land rates by 300% [27]
Timber Roofing options [1]
Kenya Power FY 2017/2018 [139]
KenolKobil 2018 and beyond [332]
 
Forum Jump


Welcome Guest Search | Active Topics | Log In | Register

7 Pages«<34567>
Kenya Power FY 2017/2018
Cde Monomotapa
#81 Posted : Wednesday, October 31, 2018 3:37:05 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,960
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.
KaunganaDoDo
#82 Posted : Wednesday, October 31, 2018 4:05:13 PM
Rank: New-farer


Joined: 8/6/2018
Posts: 86
Cde Monomotapa wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.


KPLC has just lost over Ksh 6 Billion in revenues under this declaration
Ebenyo
#83 Posted : Wednesday, October 31, 2018 4:17:58 PM
Rank: Veteran


Joined: 4/4/2016
Posts: 1,368
Location: Kitale
KaunganaDoDo wrote:
Cde Monomotapa wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.


KPLC has just lost over Ksh 6 Billion in revenues under this declaration


KPLC- Kaunganadodo
kengen-sparky
kq-obiero
kenol-vvs
mumias-Hamaina
Towards the goal of financial freedom
kawi254
#84 Posted : Wednesday, October 31, 2018 4:31:36 PM
Rank: Member


Joined: 2/20/2015
Posts: 248
Location: Nairobi
Road side declarations, as long as PPAs remain intact somebody must eventually foot the bill - KPLC or tax payer( GoK)
VituVingiSana
#85 Posted : Wednesday, October 31, 2018 4:34:19 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,908
Location: Nairobi
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#86 Posted : Wednesday, October 31, 2018 4:40:43 PM
Rank: Elder


Joined: 12/4/2009
Posts: 5,670
Location: NAIROBI
KaunganaDoDo wrote:
Cde Monomotapa wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.


KPLC has just lost over Ksh 6 Billion in revenues under this declaration

That is less than what they lose in corruption and inflated projects.
lochaz-index
#87 Posted : Wednesday, October 31, 2018 6:52:34 PM
Rank: Veteran


Joined: 9/18/2014
Posts: 901
Cde Monomotapa wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.

Big four was a nonstarter from the get go. Policy making is shockingly absurd.
The main purpose of the stock market is to make fools of as many people as possible.
Angelica _ann
#88 Posted : Wednesday, October 31, 2018 7:11:21 PM
Rank: Elder


Joined: 12/7/2012
Posts: 9,529
lochaz-index wrote:
Cde Monomotapa wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!


Excellent. Demand elasticity for segments that actually exist i.e Domestic & Small Commercial. Big 4 manufacturing is a hoax!! Furthermore, less investment in new production.

Big four was a nonstarter from the get go. Policy making is shockingly absurd.


Policy making is not absurd but what is expected with the crop of leadership we have (elect).
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Superprime1
#89 Posted : Thursday, November 01, 2018 8:50:07 AM
Rank: Member


Joined: 5/2/2018
Posts: 103
Location: Kinungi
VituVingiSana wrote:
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?

It's not really a loss; it's a wake up call to 'KPHellC' to start managing its costs efficiently and stem corruption at all levels.
Superprime1
#90 Posted : Thursday, November 01, 2018 8:56:23 AM
Rank: Member


Joined: 5/2/2018
Posts: 103
Location: Kinungi
Superprime1 wrote:
VituVingiSana wrote:
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?

It's not really a loss; it's a wake up call to 'KPHellC' to start managing its costs efficiently and stem corruption at all levels.

And this has to start with the kind of systems it acquires to do business.

Why does it have to keep shutting down to adjust tariffs? Does it even ever think of placing customers at the centre of its business? Nope.

It should borrow a leaf from the likes of Safaricom, and banks too, which only have to shut down once in forever to upgrade systems. Shut downs are lost opportunities.
Angelica _ann
#91 Posted : Thursday, November 01, 2018 3:04:37 PM
Rank: Elder


Joined: 12/7/2012
Posts: 9,529
Superprime1 wrote:
Superprime1 wrote:
VituVingiSana wrote:
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?

It's not really a loss; it's a wake up call to 'KPHellC' to start managing its costs efficiently and stem corruption at all levels.

And this has to start with the kind of systems it acquires to do business.

Why does it have to keep shutting down to adjust tariffs? Does it even ever think of placing customers at the centre of its business? Nope.

It should borrow a leaf from the likes of Safaricom, and banks too, which only have to shut down once in forever to upgrade systems. Shut downs are lost opportunities.


Lakini si wamerudi, didn't take long ......


We wish to inform our customers that following successful implementation of the new tariffs, vending for prepaid tokens has resumed. Thank you for your support.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Ericsson
#92 Posted : Thursday, November 01, 2018 3:22:34 PM
Rank: Elder


Joined: 12/4/2009
Posts: 5,670
Location: NAIROBI
Angelica _ann wrote:
Superprime1 wrote:
Superprime1 wrote:
VituVingiSana wrote:
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?

It's not really a loss; it's a wake up call to 'KPHellC' to start managing its costs efficiently and stem corruption at all levels.

And this has to start with the kind of systems it acquires to do business.

Why does it have to keep shutting down to adjust tariffs? Does it even ever think of placing customers at the centre of its business? Nope.

It should borrow a leaf from the likes of Safaricom, and banks too, which only have to shut down once in forever to upgrade systems. Shut downs are lost opportunities.


Lakini si wamerudi, didn't take long ......


We wish to inform our customers that following successful implementation of the new tariffs, vending for prepaid tokens has resumed. Thank you for your support.

In the new tariff structure ksh.2000 gives one how many units/tokens?
Ericsson
#93 Posted : Sunday, November 04, 2018 8:40:33 AM
Rank: Elder


Joined: 12/4/2009
Posts: 5,670
Location: NAIROBI
@KaunganaDoDo
The board also needs to be disbanded,the chairman is a frontman of a very vocal MP from North Eastern.
he has eaten from the company including the bone marrow
KaunganaDoDo
#94 Posted : Sunday, November 04, 2018 9:33:04 AM
Rank: New-farer


Joined: 8/6/2018
Posts: 86
Ericsson wrote:
Angelica _ann wrote:
Superprime1 wrote:
Superprime1 wrote:
VituVingiSana wrote:
Superprime1 wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Households consuming a maximum of 100 units of power will now pay reduced charges of Sh10 per unit after the energy regulator expanded the subsidy threshold to 100 units from 10 units announced in July.

https://www.businessdail...30524-20ovt3/index.html

The review, which takes effect Thursday (November 1), will also see small businesses consuming up to 100 kilowatt hours of power also pay a reduced charge per unit Sh10 per unit from Sh15.60.

The amended tariff structure review follows President Uhuru Kenyatta's directive earlier in the month following public outcry.

The present charge for those using less than 10 units is presently Sh12 while those consuming 11-100 are levied Sh15.80.

This excludes pass-through charges such as fuel cost charge, forex and value added tax.


BOOOOM!

A good development for consumers. Kenya Power can still make huge profits if it ends corruption and trims the huge perks paid to staff (I hear allowances beat the basic salaries smile ).
Who absorbs the loss?

It's not really a loss; it's a wake up call to 'KPHellC' to start managing its costs efficiently and stem corruption at all levels.

And this has to start with the kind of systems it acquires to do business.

Why does it have to keep shutting down to adjust tariffs? Does it even ever think of placing customers at the centre of its business? Nope.

It should borrow a leaf from the likes of Safaricom, and banks too, which only have to shut down once in forever to upgrade systems. Shut downs are lost opportunities.


Lakini si wamerudi, didn't take long ......


We wish to inform our customers that following successful implementation of the new tariffs, vending for prepaid tokens has resumed. Thank you for your support.

In the new tariff structure ksh.2000 gives one how many units/tokens?


Thr new tariff has classified Domestic Customers as either DC1 or DC2...DC1 is customers whose average monthly consumption is 0-100 units....Their energy rates has reduced from Ksh 15.86 per kwh to 10 shillings per kwh...( Exclusive of taxes levies and Passthrough Charges)...if you added taxes, levies and Passthrough Charges the effective charge is around 15.09 shillings per unit...For DC2 customers ( customers whose consumption is above 100 umits per month)....the energy rate has remained unchanged at 15.86 shillings per kWh (exclusive of taxes levies and Passthrough Charges)...if you add the taxes, levies and Passthrough Charges, the effective charge is around 22.08 shillings per month... Customers are coded as DC1 and DC2 depending on their average consumption in previous 3 months...the average is a moving average, meaning Customers will be shifted from DC1 to DC2 if their average consumption exceed 100 units, and Vice Versa....So you can check your consumption and classfy yourself accordingly, then divide your 2000 by either 22.08 or 15.09
KaunganaDoDo
#95 Posted : Sunday, November 04, 2018 9:37:45 AM
Rank: New-farer


Joined: 8/6/2018
Posts: 86
Ericsson wrote:
@KaunganaDoDo
The board also needs to be disbanded,the chairman is a frontman of a very vocal MP from North Eastern.
he has eaten from the company including the bone marrow


The Chairman is a Saint...he just came last December...he is the man to save them. He is the one with the broom. Plus he is a UK man, he doesn't take instructions from Harambee House B or Annex. And he is not a friend to the vocal MP from Garissa. The MP wanted someone else...Clanism
the deal
#96 Posted : Sunday, November 04, 2018 4:11:57 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,389
Location: Windhoek/Nairobbery
Kenya installed Electricity Capacity as of now is 2250 MW & rising.... Demand is at 1640 MW & probably falling due to current economic slow down...

The problem is... Kenya Power needs billions to expand its network in order to be able to sell all this power...they don't have the billions... So I think they will request a bailout from GoK in the near future... On the other hand they need to stop signing new PPA's and regotiate some of the existing ones.
Ericsson
#97 Posted : Monday, November 05, 2018 10:28:41 AM
Rank: Elder


Joined: 12/4/2009
Posts: 5,670
Location: NAIROBI
https://www.standardmedia.co.ke/business/article/2001301346/turkana-project-to-earn-firm-billions
Lake Turkana Wind Power project (LTWP) will now sell electricity to Kenya Power at a 50 per cent discounted rate, it has emerged. The arrangement, however, comes with a rider that the power distributor’s purchases from the firm’s Marsabit wind farm will have to cross a certain threshold.
This could undercut other power producers as a 50 per cent discount would reduce the per unit cost of electricity to about Sh4.4 from Sh8.8 (7.53 Euro cents).
t is also comparable to the cost of hydroelectricity, currently the cheapest, at about Sh3 and geothermal at Sh7 per unit. Kenya Power will, however, have to purchase close to 1.5 billion units of electricity before it can start to enjoy the 50 per cent discount on the current tariff. According to LTWP, at the current rate of power generation by the plant and purchase trends by Kenya Power, the electricity distributor can cross the threshold in 10 months. “Whenever power purchase reaches 1.46 terawatt hours at any point during the year (about 1.46 billion kilowatt-hours), we will sell electricity to Kenya Power at half the price for the remainder of the year,” said Rizwan Fazal director at LTWP.
“In the interest of that, KPLC should try and reach this threshold as quickly as possible.” At a rate of Sh8.8 per unit, it would mean the wind plant will have earned more than Sh11.2 billion per year before it can start selling power at the discounted tariff. It is not clear whether Kenya Power would pass the benefits to power consumers considering the Power Purchase Agreement (PPA) with LTWP sets the tariff at Sh8.8 per KWh. There are, however, clauses on the discount once the 1.46 billion KWh threshold is achieved.
kawi254
#98 Posted : Monday, November 05, 2018 10:58:09 AM
Rank: Member


Joined: 2/20/2015
Posts: 248
Location: Nairobi
Ericsson wrote:
https://www.standardmedia.co.ke/business/article/2001301346/turkana-project-to-earn-firm-billions
Lake Turkana Wind Power project (LTWP) will now sell electricity to Kenya Power at a 50 per cent discounted rate, it has emerged. The arrangement, however, comes with a rider that the power distributor’s purchases from the firm’s Marsabit wind farm will have to cross a certain threshold.
This could undercut other power producers as a 50 per cent discount would reduce the per unit cost of electricity to about Sh4.4 from Sh8.8 (7.53 Euro cents).
t is also comparable to the cost of hydroelectricity, currently the cheapest, at about Sh3 and geothermal at Sh7 per unit. Kenya Power will, however, have to purchase close to 1.5 billion units of electricity before it can start to enjoy the 50 per cent discount on the current tariff. According to LTWP, at the current rate of power generation by the plant and purchase trends by Kenya Power, the electricity distributor can cross the threshold in 10 months. “Whenever power purchase reaches 1.46 terawatt hours at any point during the year (about 1.46 billion kilowatt-hours), we will sell electricity to Kenya Power at half the price for the remainder of the year,” said Rizwan Fazal director at LTWP.
“In the interest of that, KPLC should try and reach this threshold as quickly as possible.” At a rate of Sh8.8 per unit, it would mean the wind plant will have earned more than Sh11.2 billion per year before it can start selling power at the discounted tariff. It is not clear whether Kenya Power would pass the benefits to power consumers considering the Power Purchase Agreement (PPA) with LTWP sets the tariff at Sh8.8 per KWh. There are, however, clauses on the discount once the 1.46 billion KWh threshold is achieved.


The PPA was 'take or pay'so not sure why there is a target for KPLC to reach the 1.46 billion Kwh threshold..they are bound to buy all the power LTWP generates (unless there has been a renegotiation of PPA)


Due to fluctuating wind power i.e one moment is generating 200Mw when windspeed is high and next moment is generating 50Mw when wind speed low KPLC has to maintain a 'spinning reserve i.e contract a diesel generator' to be running their diesel engines to be able to cover the shortfall in a moments notice so as not to destabilize the grid.... now this spinning reserve has a cost!
KaunganaDoDo
#99 Posted : Monday, November 05, 2018 12:48:34 PM
Rank: New-farer


Joined: 8/6/2018
Posts: 86
kawi254 wrote:
Ericsson wrote:
https://www.standardmedia.co.ke/business/article/2001301346/turkana-project-to-earn-firm-billions
Lake Turkana Wind Power project (LTWP) will now sell electricity to Kenya Power at a 50 per cent discounted rate, it has emerged. The arrangement, however, comes with a rider that the power distributor’s purchases from the firm’s Marsabit wind farm will have to cross a certain threshold.
This could undercut other power producers as a 50 per cent discount would reduce the per unit cost of electricity to about Sh4.4 from Sh8.8 (7.53 Euro cents).
t is also comparable to the cost of hydroelectricity, currently the cheapest, at about Sh3 and geothermal at Sh7 per unit. Kenya Power will, however, have to purchase close to 1.5 billion units of electricity before it can start to enjoy the 50 per cent discount on the current tariff. According to LTWP, at the current rate of power generation by the plant and purchase trends by Kenya Power, the electricity distributor can cross the threshold in 10 months. “Whenever power purchase reaches 1.46 terawatt hours at any point during the year (about 1.46 billion kilowatt-hours), we will sell electricity to Kenya Power at half the price for the remainder of the year,” said Rizwan Fazal director at LTWP.
“In the interest of that, KPLC should try and reach this threshold as quickly as possible.” At a rate of Sh8.8 per unit, it would mean the wind plant will have earned more than Sh11.2 billion per year before it can start selling power at the discounted tariff. It is not clear whether Kenya Power would pass the benefits to power consumers considering the Power Purchase Agreement (PPA) with LTWP sets the tariff at Sh8.8 per KWh. There are, however, clauses on the discount once the 1.46 billion KWh threshold is achieved.


The PPA was 'take or pay'so not sure why there is a target for KPLC to reach the 1.46 billion Kwh threshold..they are bound to buy all the power LTWP generates (unless there has been a renegotiation of PPA)


Due to fluctuating wind power i.e one moment is generating 200Mw when windspeed is high and next moment is generating 50Mw when wind speed low KPLC has to maintain a 'spinning reserve i.e contract a diesel generator' to be running their diesel engines to be able to cover the shortfall in a moments notice so as not to destabilize the grid.... now this spinning reserve has a cost!


The take or pay (Deemed level of generation) is at 55% load factor, which translates to 1.445 billion units per year. Above these units, KPLC is not obligated to buy from LTWP...The current wind speed is higher than originally thought, so LTWP has shown that they are able to do around 66% load factor...thus any units above 1.445 billion threshold is not take or pay
Ericsson
#100 Posted : Monday, November 05, 2018 1:05:07 PM
Rank: Elder


Joined: 12/4/2009
Posts: 5,670
Location: NAIROBI
KaunganaDoDo wrote:
kawi254 wrote:
Ericsson wrote:
https://www.standardmedia.co.ke/business/article/2001301346/turkana-project-to-earn-firm-billions
Lake Turkana Wind Power project (LTWP) will now sell electricity to Kenya Power at a 50 per cent discounted rate, it has emerged. The arrangement, however, comes with a rider that the power distributor’s purchases from the firm’s Marsabit wind farm will have to cross a certain threshold.
This could undercut other power producers as a 50 per cent discount would reduce the per unit cost of electricity to about Sh4.4 from Sh8.8 (7.53 Euro cents).
t is also comparable to the cost of hydroelectricity, currently the cheapest, at about Sh3 and geothermal at Sh7 per unit. Kenya Power will, however, have to purchase close to 1.5 billion units of electricity before it can start to enjoy the 50 per cent discount on the current tariff. According to LTWP, at the current rate of power generation by the plant and purchase trends by Kenya Power, the electricity distributor can cross the threshold in 10 months. “Whenever power purchase reaches 1.46 terawatt hours at any point during the year (about 1.46 billion kilowatt-hours), we will sell electricity to Kenya Power at half the price for the remainder of the year,” said Rizwan Fazal director at LTWP.
“In the interest of that, KPLC should try and reach this threshold as quickly as possible.” At a rate of Sh8.8 per unit, it would mean the wind plant will have earned more than Sh11.2 billion per year before it can start selling power at the discounted tariff. It is not clear whether Kenya Power would pass the benefits to power consumers considering the Power Purchase Agreement (PPA) with LTWP sets the tariff at Sh8.8 per KWh. There are, however, clauses on the discount once the 1.46 billion KWh threshold is achieved.


The PPA was 'take or pay'so not sure why there is a target for KPLC to reach the 1.46 billion Kwh threshold..they are bound to buy all the power LTWP generates (unless there has been a renegotiation of PPA)


Due to fluctuating wind power i.e one moment is generating 200Mw when windspeed is high and next moment is generating 50Mw when wind speed low KPLC has to maintain a 'spinning reserve i.e contract a diesel generator' to be running their diesel engines to be able to cover the shortfall in a moments notice so as not to destabilize the grid.... now this spinning reserve has a cost!


The take or pay (Deemed level of generation) is at 55% load factor, which translates to 1.445 billion units per year. Above these units, KPLC is not obligated to buy from LTWP...The current wind speed is higher than originally thought, so LTWP has shown that they are able to do around 66% load factor...thus any units above 1.445 billion threshold is not take or pay


Thanks KaunganaDoDo for the detailed analysis.So here LTWP has seen a way of making more money from the additional wind speed.
Users browsing this topic
Guest
7 Pages«<34567>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Home | . .. Investor | .. . Groups | .. . SME | . . . Market | .. . Club SK | . ..... About Wazua | . .. Search | . ..Sitemap | . ..Support | . ..Disclaimer | . ..Privacy Policy | . ..Terms of Use | . .. Contact Us
Copyright © 2018 Wazua.co.ke. All Rights Reserved.