Wandayi confirms Adani Energy transmission projects
Business
By
David Njaaga
| Sep 16, 2024
Energy Cabinet Secretary Opiyo Wandayi has confirmed a proposal by Adani Energy Solution to develop key transmission lines and substations in Kenya, with completion expected between 2026 and 2027.
Speaking in Nairobi on Monday, September 16, Wandayi urged stakeholders to embrace Public-Private Partnerships (PPPs) to address a $5 billion financing gap in the country's energy transmission infrastructure.
"The proposed projects are critical towards ensuring grid stability and adequacy," said Wandayi.
The plans include constructing approximately 222 km of a 400 kV transmission line between Gilgil, Thika, Malaa and Konza and a 400/220/132 kV substation at Rongai.
Additional projects involve a 99 km 220 kV transmission line from Rongai to Chemosit, a 98 km 132 kV line connecting Menengai, Ol Kalou and Rumuruti and a 132/33 kV substation at Thurdibuoro.
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Wandayi explained that the developments align with the Kenya Electricity Transmission Company (KETRACO)'s Master Plan and the Least Cost Power Development Plan, aiming for completion by 2027 to enhance grid reliability and efficiency.
Since 2008, KETRACO has relied on Development Finance Institutions and government funding for more than 20 transmission projects.
However, Wandayi noted that traditional financing methods are no longer sufficient.
"The challenges we face today require us to think beyond traditional financing methods," noted Wandayi, citing inadequate transmission capacity in key regions, insufficient evacuation capacity for renewable energy sources and system reliability issues.
He noted the ongoing due diligence process, involving thorough reviews and evaluations of submitted proposals.
He emphasised that the PPP Directorate, in coordination with the contracting authority, is ensuring that only projects passing rigorous screening will be developed.
"If structured properly, PPPs allow us to achieve value for money," he noted.
He outlined the benefits of PPPs, including risk transfer to the private sector, improved service delivery and job creation for Kenyans.
The CS called on stakeholders to collaborate in this endeavour, aiming to develop the energy sector to power Kenya's future.