Kenya to miss 2010 rural energy target
Oct 22, 2009
NAIROBI - Kenya will miss its goal of boosting connections to the national grid in rural areas to 20% by the end of next year due to delays and lack of funds, the government said on Thursday.
NAIROBI - Kenya will miss its goal of boosting connections to the national grid in rural areas to 20% by the end of next year due to delays and lack of funds, the government said on Thursday.
The authorities in east Africa’s biggest economy set out in 2004 to raise the coverage rate gradually from 4% then to 20% in 2010 and 40% by 2020.
Energy Minister Kiraitu Murungi told an energy forum that a medium voltage power grid was now within reach of 63% of the population, but that the goal would take longer to reach.
“Indications are the 20% connectivity target by 2010 will not be realised by December next year, given that the current connectivity in the rural areas is about 10 percent,†he said.
He said the plan needed at least $4.9b for it to be accelerated.
Out of that amount, $753m will be spent on assessing the nation’s geothermal resources -- estimated at 7,000 MW -- $1.49b on generation, $464m on distribution and $1.11b on rural electrification. He said the government, KenGen and KPLC would raise about 46% of that amount, and the rest would be sourced from independent power producers and development partners.
He was referring to the nation’s main power generation firm KenGen and Kenya Power and Lighting Company the sole transmission and distribution firm.
Electricity was vital to the country’s socio-economic goals, Murungi said, adding that the power sector lacked adequate generation capacity to meet demand, suffered from extremely limited transmission capacity and ageing infrastructure.
“The primary cause of these challenges is past policy neglect and underinvestment both by the government and the private sector,†he said.
Kenya has launched reforms in its power sector to encourage investments, including the formation of a second transmission firm and a dedicated geothermal development company.
Analysts say the second transmitter could encourage investments in the sector.
Meanwhile, oil slipped towards $80 on Thursday as a stronger dollar encouraged investors to lock in
profit from a 12-month high hit on Wednesday.
US crude oil futures fell $1.26 to $80.11 a barrel. London Brent crude fell $1.09 to $78.60. On Wednesday, US crude surged to $82, the highest price since October last year.
Reuters
The authorities in east Africa’s biggest economy set out in 2004 to raise the coverage rate gradually from 4% then to 20% in 2010 and 40% by 2020.
Energy Minister Kiraitu Murungi told an energy forum that a medium voltage power grid was now within reach of 63% of the population, but that the goal would take longer to reach.
“Indications are the 20% connectivity target by 2010 will not be realised by December next year, given that the current connectivity in the rural areas is about 10 percent,†he said.
He said the plan needed at least $4.9b for it to be accelerated.
Out of that amount, $753m will be spent on assessing the nation’s geothermal resources -- estimated at 7,000 MW -- $1.49b on generation, $464m on distribution and $1.11b on rural electrification. He said the government, KenGen and KPLC would raise about 46% of that amount, and the rest would be sourced from independent power producers and development partners.
He was referring to the nation’s main power generation firm KenGen and Kenya Power and Lighting Company the sole transmission and distribution firm.
Electricity was vital to the country’s socio-economic goals, Murungi said, adding that the power sector lacked adequate generation capacity to meet demand, suffered from extremely limited transmission capacity and ageing infrastructure.
“The primary cause of these challenges is past policy neglect and underinvestment both by the government and the private sector,†he said.
Kenya has launched reforms in its power sector to encourage investments, including the formation of a second transmission firm and a dedicated geothermal development company.
Analysts say the second transmitter could encourage investments in the sector.
Meanwhile, oil slipped towards $80 on Thursday as a stronger dollar encouraged investors to lock in
profit from a 12-month high hit on Wednesday.
US crude oil futures fell $1.26 to $80.11 a barrel. London Brent crude fell $1.09 to $78.60. On Wednesday, US crude surged to $82, the highest price since October last year.
Reuters