Washington, DC, May 4 - IFC, a member
of the World Bank Group, today announced plans to support Kenya Power and
Lighting Company (KPLC) in implementing a set of loss reduction measures,
aimed at reducing the technical and commercial losses experienced by the
power utility, which are currently around 19%. The advisory engagement
is expected to catalyze investment in clean energy generation, transmission
and distribution as well as other related infrastructure in Kenya.
Efforts by the utility to reach more customers have placed increased pressure
on its operating systems, resulting in higher losses. Technical losses
result from inefficient, older equipment or obsolete technology (“losses
through the wires”), whereas commercial losses stem from challenges with
unauthorized energy usage, fraud and other technical challenges.
“Currently KPLC is implementing a company-wide Loss Reduction Strategy
which includes; deploying smart metering infrastructure, load analysis
to identify technical losses across the network, proper measurement of
losses, installation of low-loss transformers and reactive power compensation
among others. Kenya Power intends to leverage on this global experience
of IFC to ensure we get it right,” said Dr. Ken Tarus, Kenya Power Acting
MD & CEO.
Through the new project, IFC will advise KPLC on reducing technical and
commercial losses, as well as training and capacity-building. The project
builds on a previous advisory engagement, led by IFC, which identified
specific actions to be made by KPLC to combat losses. This current initiative
is to support KPLC with the implementation of these measures, and will
be complemented by efforts from other development partners.
“This advisory engagement is part of IFC’s continued support to ensure
that KPLC can become more efficient and effective at providing electricity
services across Kenya. IFC will bring experiences from its work in different
markets to help reduce KPLC’s technical and commercial losses,” said
Manuel Moses, IFC Country Manager for Kenya.
Across sub-Saharan Africa, national electricity grids are characterized
by poor transmission capacity and inefficiencies, averaging 23% in losses
across the entire region. IFC intends to implement similar loss reduction
initiatives in other utilities in the region as a means to improve operational
efficiencies, contributing to better financial viability of these companies,
which is essential for private investment.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit
About Kenya Power
Kenya Power owns and operates most of the electricity transmission and
distribution system in the country and sells electricity to over 5.8 million
customers. The Company’s key mandate is to plan for sufficient electricity
generation and transmission capacity to meet demand; build and maintain
the power distribution network and sell electricity to its customers. Kenya
Power is listed at the Nairobi Securities Exchange (NSE).
Facebook page: KenyaPower