ENERGY MANAGEMENT AWARDS: Save Energy Save Money!
The Energy Management Award (EMA) is a prestigious award which is bestowed to both manufacturing and service industries as a way of rewarding and promoting efficient energy utilization.
EMA recognizes and showcases enterprises that have made major and sustainable gains in energy efficiency through the application of modern energy management principles and practices, and in the process made significant energy and cost reductions.
Visit the EMA Website for more information: www.kam.co.ke/ema
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Members advised to commit to Load Shedding in order to avoid forced power rationing
The country is facing the reality of power shortage once again due to failed long and short rains that were expected between October last year and February this year. As a result, total hydro-electricity production, whose installed capacity stands at 700MW, is down by 12 per cent, an equivalent of 100 MW.
This hydro power shortage has necessitated the need for an additional 78MW to the grid between May and October 2009. The supply capacity shortfall is projected at high levels of 80 – 144MW during this period against a projected peak demand of 1070MW for the same period. The country’s total installed capacity is 1200MW with a generation mix of 56 per cent hydro, 36 per cent thermal and 8 per cent geo-thermal.
The hydro-power shortage has increased demand for emergency power at a time when plans were underway to retire the thermal emergency power plants operated by Aggreko. The country has three thermal emergency power plants including two 110 MW stations in Nairobi’s Embakasi area and one 36 MW station in Eldoret, all diesel-driven and generating a total of 146 MW.
Low water levels in the 7-Forks dams has adversely affected power generation in the hydro power stations, with projections indicating a declining trend from May 2009 up to October 2009. Already there are strong indications that production at Masinga power station could come to complete stand. Masinga which has an installed capacity of 40MW has been down 25 per cent, hence generating only 10MW. Other downstream power stations have been operating for peak time only in an effort to manage the available water levels. These include Kiambere (154MW), Kamburu (96MW), Gitaru (225 MW), Kindaruma (44MW), Tana (14MW) and Ndula (20MW).
Although it was anticipated that emergency power plants would be retired in phases starting June 2009, the prevailing low water levels at the hydro power stations has necessitated a review of the retirement plan.
As the energy sector cries for cheaper power, KAM advises members to practice prudent energy management at firm level. This can be achieved by controlling peak loads in order to free capacity for the peak demand period between 1800 – 2200 hours. This will in effect control the national peak demand within a manageable range of 900 - 1000MW, particularly during peak hours.
PROPOSALS FOR LOAD MANAGEMENT:
In the meantime, KAM will be pushing for Time-Of-Use (ToU) Metering Tariff through the Energy Regulatory Commission (ERC) with an option for voluntary declared Load-Shedding for industrial users. The only other options we have include forced demand-side management and power rationing to be pursued by Kenya Power and Lighting Company (KPLC).
Faced with these grim realities, KAM advises its members to take the lead and voluntarily commit to the Demand Side Management (DSM) so as to forestall the imminent forced power rationing.
In line with our advocacy agenda to see energy costs come down, KAM will continue advocating for new power plants, preferably heavy fuel oil (HFO), to replace the diesel (automotive gas oil) powered emergency power plants that we are currently relying on. We are aware of Government plans to extend Aggreko by three months and procure the services of another Emergency Power supplier in three months preferably HFO. The tender for this is already out.
The below generation (dispatch) projections, which exclude Masinga station, will remain down due to low water levels:
KPLC Projected Daily Mean Energy dispatch From Hydros (May – October, 2009)
May MW/hrs June MW/hrs July MW/hrs Aug MW/hrs Sept MW/hrs Oct MW/hrs
6,250 5,050 4,675 4,400 4,400 4,575
The daily average mean energy requirement is 17,100MWh with a high of 18,646MWh and a low of 15,061MWh.[source: KPLC National Control Centre Records (April/May 2009)]
The daily shortfall on supply is expected to be between 71 - 79MW (1448MWh – 1611MWh) between May and June and rise to between 80 – 144 (1632MWh – 2938MWh) between July – September 2009.
LONG-TERM SOLUTIONS
In the long term, the government is expected to initiate new power projects in 2010 and beyond. Government has allocated funds to geothermal wells development which will require private sector to invest in power generation in the geothermal sector. As such, KAM expects the total power supply and demand to grow, presenting an opportunity to members to set up their own power plants including renewable power projects.
