Here are our views on the news making headlines today for Kenya:
Hopes for cheaper power dashed as diesel-generation costs increase. The Energy Regulatory Commission (ERC) data shows power consumption from diesel plants has hit a three- month high.
Our View: Though there has been a drop of geothermal power contribution to the national grid since December when it was at its peak, we believe this will not have an adverse effect on electricity costs as geothermal still accounts for a large proportion of the electricity generated standing at 47.9% as at March 2015. Unlike the previous years when the country heavily relied on hydro which has since then been relegated to second place at 36%, whose output was heavily affected by vagaries of weather. However we do not expect to see a further drop from electricity costs as a result of the 280MW geothermal power injected into the grid between last July and December as KenGen announced in Feb-15 that consumers had realized the full benefits of the 280 megawatts.
Read more in the document below: