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Kengen vs GDC
Njunge
#1 Posted : Thursday, November 19, 2009 7:30:00 AM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
Doesn't GDC's decision to sell power directly to KPLC spell doom for Kengen?Kengen will be confined to Hydro PG unless they have other strategies for green power.Someone just pulled the rug from under their feet.

Old man about town....
Nothing great was ever achieved without enthusiasm.
The General
#2 Posted : Thursday, November 19, 2009 7:32:00 AM
Rank: Member


Joined: 6/3/2006
Posts: 553
@ Njung'e,

I don't think that is the case. GDC does the expensive work of drilling wells and then leases them out to Kengen/IPP to construct the plants and produce electricit for sale.

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
The General
#3 Posted : Thursday, November 19, 2009 7:34:00 AM
Rank: Member


Joined: 6/3/2006
Posts: 553
@ Njung'e,

This should explain it better.

Restructuring of Kenya's power sector

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
Njunge
#4 Posted : Thursday, November 19, 2009 8:11:00 AM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Njenuru,

That is as it should be.Somehow,GDC has turned tables and they are going to sell directly to KPLC.

More here.
http://www.businessdaily.../-/u59clbz/-/index.html

Old man about town....
Nothing great was ever achieved without enthusiasm.
mukiha
#5 Posted : Thursday, November 19, 2009 8:22:00 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
Assuming that GDC can get the expertise to run the plants,then there would be nothing wrong in selling power directly to KPLC. After all,what value would be added by KenGen?

You may recall that before the splitting of KenGen from KPLC,the Seven Forks generators used to belong to TARDA and leased to KPLC for Management...there was some fight about how the transfer of these assets was done without compensation to TARDA but can't recall if and how it was resolved.

Anyway,as it is now,KenGen and the IPPs are not able to keep up with the power demand,therefore this will not have significant effect on KenGen's revenue growth

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Njunge
#6 Posted : Thursday, November 19, 2009 8:41:00 AM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Mukiha,
If GDC's plan to roll out a 100MWs every year comes true,then Kengen and IPPs would be in trouble in the very near future.I say this because,anybody,KPLC included would opt for the far much cheaper geothermal generated electricity.True?

Old man about town....
Nothing great was ever achieved without enthusiasm.
VituVingiSana
#7 Posted : Thursday, November 19, 2009 8:47:00 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,107
Location: Nairobi
KenGen is 'public' while GDC is 100% government owned... where do you think corruption can be hidden?
*** There is enough demand to BUY all the electricity that KenGen & GDC can produce... when GDC's new projects are up & running... we can shut down/reduce the thermal IPPs.
**** For now... the concentration should be getting the Geothermal projects online NOT fighting over who runs nothing!!!

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
The General
#8 Posted : Thursday, November 19, 2009 8:52:00 AM
Rank: Member


Joined: 6/3/2006
Posts: 553
@ Njung'e,

True.

i think Kengen is being proactive by raising a storm over the 100mw to be produced by GDC.

@ Mukiha,

I believe the source of Geo thermal expertise in E & C Africa comes from Kengen,no?

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
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