A 100 MW's of temporary power for Kenya
The persistent drought
in Kenya is causing severe power shortages across the nation as
around 74 percent of Kenya’s electricity is generated by hydropower
in the Tana River basin and in the Turkwei River gorge. The country
has been experiencing low rainfall for some time now and the long
rains normally experienced from March to May failed causing a
dramatic drop in water levels at many of the reservoirs that supply
Kenya’s hydroelectric plants, resulting in a serious decline in
Kenya’s ability to generate sufficient power for its populace and
its industries.
The effect on Kenya’s
export industries is catastrophic as much of the country’s exports
are based on fresh produce and a lack of reliable power supply
creates havoc with irrigation and temperature controls in both
green and cooling houses. Power is needed for pumping much needed
water, in post harvest handling and in cooling before grading. In
fact, many farms may be forced to close operations if the power
crisis is not ended. These massive closures will result in workers
being laid off, across the country, and the loss of market share to
other countries.
Much of East Africa is
dependent upon hydropower for its energy supplies. As with most of
the world’s developing regions, the power demands of both
population and industry are increasing steadily, and it is
frequently the case that the country’s investment into new power
infrastructure has not kept pace with the rapid demand curve.
Therefore, when a prolonged drought occurs, the effect on power
supplies will become relatively severe. Countries in the
region such as Rwanda, Uganda, Kenya and Tanzania are all currently
affected.
A temporary power
solution
To alleviate this severe
power shortage, caused by the prolonged drought, the country’s
state owned utility, Kenya Electricity Generating Company Ltd
(KenGen), awarded a contract to Aggreko for the provision of a 100
MW temporary power plant to support the national grid and ensure
uninterrupted power for Kenya’s industrial sector. The contract is
estimated to be worth approximately US$34 million over a twelve
month period.
This temporary power
plant will assist the Kenyan authorities to maintain reliable power
supplies and thus support Kenya’s continued economic growth.
Without additional generating capacity KenGen would be unable to
maintain electricity supplies. The 100 MW will account for about 10
percent of the country’s total generating capacity. KenGen is
wholly owned by the Kenyan Government and is responsible for public
power generation in Kenya.
The 100 MW temporary
power plant contract was awarded to Aggreko following an open
tender which was advertised in the local media and on the World
Bank DG Market Online website. The power plant tender was
eventually purchased by sixteen companies. In the end five, five of
the companies submitted their bids within the given tender period.
The official opening of the bids was carried out in public in the
presence of representatives of the bidders and the emergency power
supply committee of Kenya.
Following the contract
award, Aggreko immediately went ahead with their mobilization
process of equipment needed for the 100 MW temporary power plant
from Aggreko’s regional headquarters in Jebal Ali, Dubai UAE. This
work will be carried out in planned phases and the commissioning of
the power plant is expected to be completed by August 2006. The new
Embakasi temporary power plant is located in Embakasi, Nairobi. The
Embakasi power plant is located next to an existing KenGen
substation and is synchronised to Kenya’s national grid.
The scope of the contract
award is for Aggreko to be turnkey suppliers of the power plant;
the supply includes the plant’s generators, transformers,
switchgear, control rooms, fuel tanks, fuel management plus other
ancillary equipment and services. In addition to supplying and
installing the power plant, the contract award included the
commissioning plus the operation and maintenance of the Embakasi
plant. Specialised engineers, from the company, are manning the
plant 24/7 to ensure that the plant’s equipment operates at peak
efficiency.
An overall understanding
of the supply logistics that can help avoid problems is a vital
factor in the smooth running of supplying, installing,
commissioning and operating any power plant in this region. The
fact that the company had supplied a similar temporary power plant
to KenGen some years ago was a positive component in the experience
aspect of the contract being awarded to Aggreko. The company has
been running plants like this in Africa for many years so they know
how to apply their equipment and know what they can and cannot
do.
For the Embakasi plant it
is essential that throughout the contract period there is a close
working relationship between both KenGen’s and Aggreko’s operating
and management personnel. This operational association between the
two goes from operations (daily) through to senior management
(weekly and monthly). This ongoing liaison between the two
organisations ensures that the project runs smoothly and that
everyone is in touch with events and decisions.
The contract award for
the temporary power supply is over a fixed period of time, this
time frame has been estimated by Kenya’s Government officials.
However, should the rains come early then an early termination
could be negotiated. On the other hand, should the rains fail
to materialize then an extension of the fixed contract period can
be discussed. This flexibility of contract is one of the main
advantages of rentals.
A good reputation
in Kenya
The 100 MW temporary
power plant contract with KenGen is Aggreko’s second utility
contract in Kenya. Under the first emergency power supply contract,
which was awarded in 2000, Aggreko provided a 45 MW at 11 kV power
plant at Embakasi in Nairobi for a period of ten months.
Aggreko Area Director, Robin James believes that it was Aggreko’s
performance in Kenya in 2002 and 2001that underpinned the company’s
successful bid for the KenGen contract.
“Aggreko has an excellent
track record with the Kenyan Government and KenGen. Our work on the
new temporary power contract is a continuation of our good
relations. The Government of Kenya understands the importance of
power continuity to the people and the economy following the 2000
contract. This emergency power solution proved that temporary power
is a cost effective solution in such moments”, comments James.
Back in 2000, Kenya was
experiencing similar drought conditions as those of today. The
country faced a crippling power shortage after the failure of
seasonal rains reduced or in some cases stopped the output of the
hydroelectric power plants. Power rationing was introduced, costing
the economy an estimated US$10 million a day in lost production and
exports. In response, the Kenyan Government, with support from the
World Bank, issued a competitive tender for the emergency supply of
a large temporary power plant at Embakasi in Nairobi.
First power within three
weeks
The contract was awarded to Aggreko
who supplied, installed, commissioned and operated the 45 MW/11 kV
temporary power plant. A full range of equipment was provided
including generators, transformers, switch gear, control rooms and
fuel tanks plus other ancillary equipment. The plant’s first power
supplies were provided to Kenya’s grid at Embakasi within three
weeks of the effective contract date.
Engineers from Aggreko manned the
power plant on a 24 hour basis to manage operations and to ensure
that the equipment operated at peak efficiency. The Embakasi plant
provided baseload power to Kenya’s grid continuously for ten months
until Kenya’s reservoir’s had been replenished. Throughout the
execution of the contract, Aggreko maintained a high availability
of the equipment and supplied the temporary power to KenGen’s
satisfaction. In fact, 100 percent equipment availability was
maintained throughout the duration of the contract.
This year’s temporary
power plant award means that with 100 MW in a single location, this
will be the largest temporary power plant Aggreko has delivered and
is the third major contract Aggreko has won in East Africa in the
last 12 months. In 2005, Aggreko installed 50 MW in Uganda and 15
MW in Rwanda.