Kenya Power Generation
To prepare for a meeting with KenGen, information is needed on the Kenyan electricity market. Of special interest is information on how many electricity-generating companies operate in the country, how competitive this market is, if the consumer can choose between different power suppliers, what is the sentiment is around the different companies and specifically around KenGen (positive/negative), what criteria consumers use to choose their power suppliers, and are there reputation issues or possible reputation risks that power companies in Kenya are facing.
- According to the World Bank, the generation capacity in Kenya is 2,670 megawatts (MW).
- Since June 2018, renewable energy in Kenya makes up 65% of total installed capacity and 78% of the total electricity generation (7.9 terawatthours).
Electricity Generating Companies in Kenya
- Kenya Power and Lighting Company (KPLC) or Kenya Power "is the wholesale buyer of electricity and is obligated to purchase electricity from all power generators – including KenGen and IPPs -- based on negotiated Power Purchase Agreements."
- The company "transmits, distributes, and sells electricity to end users."
- Private stockholders have a 49.9% share in the company and the government owns the rest.
Summary of Findings
- During the initial hour of research, we focused on finding background information on the energy sector in Kenya. Specifically, information on the companies that generate electricity.
- Information was found on the number of electricity generating companies in Kenya and how energy is sold to the end-user.
- Based on the structure of the energy industry in Kenya, the following questions perhaps are no longer relevant:
- 1) Can the consumer can choose between different power suppliers and 2) what criteria consumers use to choose their power suppliers. As electricity from the grid is only sold by KLPC, consumers may not have a choice in the matter.
- 3) How competitive is the [electricity generating] market? As the market appears to be largely controlled by the government, there might not be a lot of competition. Therefore, perhaps IPPs and off-grid solutions can be identified.
Proposed next steps:
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