Slothful Turkana wind energy costs taxpayers Sh18bn

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Economy

Wednesday August 11 2021

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Lake Turkana Wind Strength. FILE PHOTO | NMG

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By EDWIN MUTAI

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Summary

  • Taxpayers paid non-public investors Sh18 billion due to the delays in connecting the Lake Turkana Wind Strength (LTWP) to the national grid.
  • The enormous payout arose from a 381-day delay in completion of the 428km high-voltage energy line from Marsabit to Suswa sub-space in Narok, primarily the predominant interchange for energy from totally different sources.
  • LTWP commissioned its 310 megawatts energy plant on January 27, 2017 however the authorities, which constructed the evacuation line did no longer total the works till September 24, 2019.

Taxpayers paid non-public investors Sh18 billion due to the delays in connecting the Lake Turkana Wind Strength (LTWP) to the national grid.

The enormous payout arose from a 381-day delay in completion of the 428km high-voltage energy line from Marsabit to Suswa sub-space in Narok, primarily the predominant interchange for energy from totally different sources.

LTWP commissioned its 310 megawatts energy plant on January 27, 2017 however the authorities, which constructed the evacuation line did no longer total the works till September 24, 2019.

“On account of delays in ending the transmission line, vitality charge used to be no longer evacuated from LTWP plant resulting in accumulated penalties to the authorities most often known as deemed generated electrical energy (DGE) claims amounting to Sh18,499,082,672 (euros 167,261,145) for the duration January 27, 2017 to September 10, 2019,” Nancy Gathungu talked about in a special audit of LTWP.

Already, the authorities has paid Sh10.3 billion to owners of LTWP leaving a balance of Sh9.8 billion (euros 81,577,128).

“The balance (Sh9.8 billion) is to be recovered by LTWP Ltd via a tariff enhance by Kenya Strength and Lighting Company (KPLC) of Euros 0.00845/Kwh for the duration June 1, 2018 to Might well well impartial 31, 2024 (DEG restoration duration) and at disaster of be borne by the customers,” Ms Gathungu talked about.

The wind farm, the finest in Africa, with a capacity of 310 megawatts — ample to energy up to one million homes —entered into a energy take settlement (PPA) with KPLC in 2009.

Below the PPA, LTWP used to be to finance, build, get, make, set up, check, charge, operate, retain and sell find electrical energy output completely to KPLC.

KPLC on the opposite hand used to be required to evacuate all find electrical energy from LTWP plant as soon as commissioned for a duration of 20 years.

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