Thika Thermal Power Project
- Reference: P-KE-FAA-001
- Approval date: 07/12/2011
- Start date: 19/10/2012
- Appraisal Date: 10/10/2011
- Status: OngoingOnGo
- Implementing Agency: Thika Power Limited
- Location: KENYA
Construction and operation of an 87 MW thermal power plant located on land owned by the Kenya Power and Light Company (KPLC) in the Athi River region 35 km from Nairobi. The plant comprises 5 heavy fuel oil generators that can be convertible to natural gas (if gas becomes available) plus a 7 MW steam turbine. The project will supply electricity to KPLC under a 20 year PPA at a tariff of 7.4 EUR cent/kWh (covering fixed costs and variable O<(>&<)>M cost).
Currently, Kenya has an effective electric generating capacity of approximately 1,342MW. Peak demand has steadily increased from 987 MW in 2006/07 to 1,036 MW in 2007/08 rising to 1,172 MW at the end of 2009. Based on the Least Cost Power Development Plan (LCPDP), the country will require additional installed electric energy capacity of 2,396 MW by year 2020. Kenya is also seeking to diversify its energy sources, which are currently concentrated in hydropower. The contribution from hydro generation decreased from 65% in 2007/08 to 40% in 2008/09 due to recent drought. Thermal generation increased only from 29% to 31%, which was insufficient to fill the gap left by hydro power declining. The Nairobi region is currently using 60 MW of costly emergency power provided by small diesel generators. The emergency power will be replaced by the new thermal plants around Nairobi including Thika. This Project will al so help supply the nearby town of Thika that requires 40 MW and is growing.
While supply is restricted due to the decrease in hydro generation, the Country
JABBA Rafael Jose - OPSD4