Ministry warns of looming energy crisis if moratorium on power is not lifted

KenGen engineers at the geothermal wells in Olkaria, Naivasha. [File, Standard]

The Ministry of Energy has warned of a looming energy crisis if the National Assembly fails to lift the moratorium on Power Purchase Agreements (PPAs).

The Ministry said the country would be dragged back to dark days when power rationing was the order of the day. The Ministry had approached Parliament to lift the moratorium, stressing the urgency of expanding power sources to meet increasing energy demand.

This emerged during the National Assembly’s leadership retreat in Naivasha on Wednesday, where Energy Principal Secretary Alex Wachira noted that electricity demand was on the rise.

Addressing the MPs, Wachira said the country has not developed new electricity generation due to the moratorium imposed on developments last year, 

As a result, the country is facing power rationing at peak hours, increased cost of power and over-reliance on imports mainly from Uganda and Ethiopia. “This has eroded investor confidence due to uncertainty in the execution of negotiated PPAs and we are calling in Parliament to lift the moratorium,” he said.

Wachira said the State projects that the peak demand for electricity in the country will grow at six per cent per year and hit 2,871 MW (megawatts) in the next four years, compared to the current 2,242MW. “The current power generation reserves are at only five per cent of the peak demand against the internationally acceptable standards of 15 per cent,” he said.

The PS said lifting the ban would enhance electricity supply to meet rising demand, ensure cost was affordable, and boost investor confidence while reducing reliance on imports.

“The Ministry requests that the National Assembly considers expediting the lifting of the moratorium to mitigate against potential power crisis and nationwide power outages,” he said.

Mwala MP Vincent Musyoka said there were no substantial bases for lifting the moratorium on PPAs. Musyoka, who chairs the Departmental Committee on Energy said a report on the cost of energy was ready and would be presented to Parliament soon.

“We don’t see any reason to lift the moratorium and if we do, there shall be conditions which include reviewing the current agreement on power tariffs,” he stated. He urged energy producers to add backup storage to harness excess power produced during the day for peak demand. Kilifi North MP Owen Baya said the moratorium was put in place because the agreements were making the Kenyans pay more for electricity. 

Kilifi North MP Owen Baya said the moratorium was put in place because the agreements were making the Kenyans pay more for electricity. 

“We are concerned by the high cost of power in the country which is eroding investor confidence and there is a need to first look at the high cost of electricity,” he said.

Endebess MP Robert Pukose, who chairs the departmental committee on Health, urged the ministry to disclose the agreements before Parliament could consider lifting the moratorium.

“We want the ministry to first reveal how much they are paying for the power purchasing from various power producers, such as KenGen and the rest,” he said.

Emuhaya MP Omboko Milemba said that the ministry must first clarify what strategies they had put in place to deter exploitation by the PPAs.