WB warns about high cost of power

Masinga Dam in Machakos County on April 19, 2013. The World Bank has warned that consumers could pay triple the current cost of electricity as a result of failure to integrate climate change into the planning and design of hydro-power infrastructure. PHOTO | FILE 

In Summary

• In a new report that analyses impacts of weather on energy and water infrastructure across Africa, the global lender also says power generating companies stand to lose revenues of between five and 60 per cent as a result.
• It comes after the Kenya National Bureau of Statistics released a report early this month showing that there was increased production of electricity by fuel-driven generators in January and February due to a reduction in water levels at the dams due to a prolonged dry spell.

By IMMACULATE KARAMBU
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The World Bank has warned that consumers could pay triple the current cost of electricity as a result of failure to integrate climate change into the planning and design of hydro-power infrastructure.

In a new report that analyses impacts of weather on energy and water infrastructure across Africa, the bank also says power generating companies stand to lose revenues of between five and 60 per cent as a result.

“Climate change requires new approaches that will help make infrastructure investments in Africa more resilient to the uncertain climate of the future. No action is not an option,” Mr Jamal Saghir, World Bank senior regional adviser for Africa, said.

The report is based on a study carried out across four power pools (regional grids) on the continent to evaluate economic impacts of an uncertain climate on hydro-power and irrigation expansion plans.

WATER LEVELS

It comes after the Kenya National Bureau of Statistics released a report early this month showing that there was increased production of electricity by fuel-driven generators in January and February due to a reduction in water levels at the dams due to a prolonged dry spell.

According to the bureau, thermal generators produced 93.78 and 109.19 million units in December and January, respectively. They accounted for 121.11 million units produced in February.

“The dam level at our main reservoir has dropped meaning our current energy storage is only 22.87 per cent of the full dam capacity. We, therefore, need lots of inflow into the dam to sustain the kind of dispatch from hydro but we have not reduced the hydro utilisation,” the Energy Regulatory Commission said in a statement sent to the Nation.

Hydro generation has been on a decline for three consecutive months since November, when it was at a high of 307.25 million units, accounting for 229.50 million units in February, according to the KNBS data.

Generation from geothermal resources also declined between January and February, from 388.40 million units to 352.12 million units.
The World Bank recommends the establishment of a climate resilience preparation facility to support plans for infrastructure investments and training programmes for professionals involved in planning and design.