Electricity Cost Drops by 14pc in Kenya Amid Boost in Generation

Heavy rains have caused water levels at Masinga Dam, Kenya's largest hydropower reservoir, to surge past capacity.

This presents both an opportunity and a challenge for the country. On the positive side, the increased water volume has led to a significant, 14% decrease in electricity generation costs. The Energy Ministry anticipates these costs could drop even further if the wet weather persists. This windfall stems from Masinga's role in powering the nation's hydroelectricity grid, the most cost-effective means of power generation in Kenya. Currently, Masinga is operating near capacity, producing 461MW out of a potential 600MW.

However, the dam's brimming reservoir also raises concerns about potential flooding downstream. To mitigate this risk, authorities are taking a comprehensive approach. First, a team of county commissioners has established an emergency response unit specifically focused on minimizing damage from overflow. Additionally, a National Response Centre has been activated under the National Disaster Operation Centre to closely monitor the situation.

Furthermore, as a long-term solution, plans are underway to raise the height of the Masinga Dam by 1.5 meters. This preventative measure aims to eliminate future overflows and the associated downstream flooding risks. KenGen Managing Director Peter Njenga highlights the advantages of this development, noting that hydro-generation is the most cost-effective method of producing electricity in the country. Mr Njenga's remarks stress the potential for lower electricity costs for consumers as a result of the increased rainfall.

This substantial output from hydro-power sources is expected to contribute to reducing the overall cost of electricity production, thereby enabling cost savings to be passed on to consumers. Raymond Omollo, the Principal Secretary for the Interior Ministry, expresses apprehension regarding the overflow at the Masinga dam. He notes that proper management of water resources and dam infrastructure will be crucial to mitigate any potential risks associated with excessive water levels.