Pakistan has capacity of over 30,000 MW wind power

Published: September 26, 2011

Our Staff Reporter 

KARACHI – Wind-generated energy is now the fastest growing power sector globally for the last five years and if it is harnessed in Pakistan, the country could overcome the energy shortage that were seen in recent past years.

During the last five year, 136,000MW of wind power has been added to grids in a number of countries showing annual growth of 46 per cent, according to the figures released by Global Wind Energy Council.

In India, the Wind Power Generation Capacity is over 13,000 MW (annual growth rate of 56pc) while, in China more than 50,000MW. Pakistan in naturally gifted for wind power projects as Jhimpir-Gharo Wind Corridor has capacity for over 30,000 MW and falls under wind zone with high average wind speed availability. This has been assessed and proved by UNDP, AEDB and other private studies. 

The government has already announced special incentives for fast track renewable energy projects including wind power projects which were earlier facing inordinate delays since 2006 due to various bureaucratic snags.

Thermal power projects favoured by NEPRA & PPIB in tariffs and approvals have high fuel, inventory and O&M costs with ever-increasing oil import bill, negatively affecting trade balance and rupee value and have severe environmental effects. 

On the other hand wind power has no fuel requirement and has no environmental impact but is overlooked for mysterious reasons. To speed up wind power projects GOP recently allotted land to reputed corporate groups for faster implementation of wind power projects and big names like Sapphire, Lucky, Fauji Foundation, Tapal, Fauji Fertilizer, Green, Master, Sachal. Tenaga, Al-Abbas, CWEC China, Green power, Zephyr, Beacon, Gul Ahmad and Habib have initiated wind energy projects with a total capacity size of 800MW, potentially needing an investment of $2.0 billion. One project, being developed by Fauji Fertilizer has recently achieved financial close.

However as our bureaucracy historically spoils projects of national interest, recently NEPRA issued a notice of hearing for development and determination of upfront Wind energy projects tariffs. Unfortunately, the terms of the upfront tariff are so much worse than the recently closed Fauji Wind Project that it looks like an effort to slow down projects rather than speed them up.

This recent misadventure by NEPRA, if approved, will kill investor’s interests in wind energy projects just for the sake of favouritism and several investors till recently buoyed up in this sector will simply lose the investments already made. Concurrently, if Wind Power Projects are replaced with High Tariff Thermal Power projects, one could see massive impact on macro economics, inflation and rupee value. This exercise to please a few people, oil marketing companies and vested interests will have long lasting impact on Pakistan Energy Scenario and its sustainability. GOP & President Asif Ali Zardari should take immediate steps in this regard to restore investor’s confidence and ask NEPRA to stop taking anti-investment steps.

Britain- Ever Given Power Transmission Towers a Second Thought? – Part One

by STUART on SEPTEMBER 21, 2011

How much notice do you take of electrical pylons when enjoying the vista of open countryside? We’re so used to seeing the 150-foot-high towers stretching across our countryside that barely a second thought is given to whether they could be designed differently.

In the UK the design has remained largely unchanged since 1927, when Sir Reginald Blomfield’s design was first erected by (moment of pride here) US engineers the Milliken Brothers. Now the UK has some 88,000 of these ghastly structures blighting our landscape and although few have been built in recent years, a major new expansion is going to be required this decade according to Chris Huhne, the governments energy minister.

In a Telegraph article Huhne is quoted as saying 
“Britain will see the equivalent of 20 new power stations constructed by 2020, and we need to use electricity pylons to get this new, low-carbon energy to your televisions and toasters, dishwashers and DVD players.” What was the circumstance that prompted him to make such a depressing statement, you may ask? Well, more than the normal ministerial comment fortunately, Huhne was speaking at the London Design Festival this week at which the six shortlisted finalists from 250 applications were released. The design challenge is to replace dear old Sir Regie’s 75-year-old design with something a little more graceful, maybe even aesthetically pleasing, if that is possible for such a mundane structure. Of course the competition organizers, the British National Grid, do not promise to adopt the new design, but full marks to them for commissioning it and prompting a debate.

It is difficult to find details of the amount of structural steel used in a typical 400,000-volt power line tower, but at around 150 feet high it must be substantial. Some of these new designs call for tubular structures, some for lattice works made from formed angles or flats, others would have to be formed for rolled and welded sheet – so if the winner is adopted for widespread use, both in new structures and replacing aging lower voltage towers, the impact on the domestic steel demand could be significant within that product category. The designs differ markedly and some hold out the possibility they would not need to be so high, reducing their visual impact against the skyline.

The designs can be seen at this website, run by the National Grid, to showcase the competition. Readers have to get past the hyperbolic design descriptions made by the designers — you really wonder if these guys are frustrated poets in the wrong trade — but the ingenuity of their designs can’t be faulted.

Source: Royal Institute of British Architects/National Grid Pylon Competition

Our favorite is probably Plexus by AL_A Pylon, and although we don’t hold with the “Plexus creates a poetic dialogue between structure and landscape,” it’s certainly more attractive than the current Eiffel Tower-type structure.

Courtesy of http://agmetalminer.com

More power for Uganda consumers but no tariff relief

The Bujagali Energy Ltd powerhouse is ready with turbines installed and wiring in progress. Picture: Morgan Mbabazi 

By Michael Wakabi  (email the author)

Posted  Sunday, September 25  2011 at  12:18

Uganda could soon see the last of the crippling electric power shortages as the 250MW Bujagali hydropower station comes on line in late November.

That, according to Mr Kabagambe should inject 200 MW into the grid, bringing the deficit down to 100 MW. However, increased power supply will not translate into immediate relief for consumers, who will continue to pay Ush400 (14 US cents) per kilowatt hour because the Treasury will instead use the opportunity to reduce the subsidy on the tariff, which currently represents no more than 60 per cent of the realistic cost of delivering electricity.

According to Ministry of Energy Permanent Secretary Fred Kabagambe Kaliisa, the first unit at Bujagali will begin adding 50MW to the grid from the end of November through April 2012 when the station will become fully operational. 

“There has been a short delay at the Bujagali project, but we are confident that by the end of November it will be generating enough to fill in the current gap of 50MW. We are very confident that by the end of November, the plant will give us power and by April all the capacity should be online,” Mr Kaliisa said.

He said all the turbines at the dam have been installed and are being aligned, so that even with the current constrained water situation, once fully operational, Bujagali should be able to deliver 200MW without a problem. “The lake has recovered and the full capacity will only be needed during peak demand, so there is plenty of scope for managing the water regime to ensure power availability without compromising agreed release levels,” he argued.

The increased power availability is expected to have a huge impact on the weighted average that, with expensive diesel based supply, currently stands at 11 cents per kilowatt hour. While this development will not have any impact on end-user tariffs, industry sources are pointing a finger at the skewed contract enjoyed by distribution company Umeme.

Under the contract, the Treasury not only indemnifies Umeme for 99 per cent of any system losses it declares to the regulator, but the price at which it buys power from Uganda Electricity Transmission Company UETCL, is also locked at eight cents.

On the other hand, UETCL is buying power from generation company Eskom at 11 cents. To deliver the power to Umeme at eight cents, the Treasury must fork out three cents to UETCL. (Umeme retails the power at 300 per cent of the cost at which it bought it).  With the 360 million kilowatt hours that Umeme was buying monthly at one time, these subsidies translated into Ush33 billion per quarter or $16.5million before the shilling was watered down by rapid depreciation.

With such easy money, some commentators say, the government removed any incentive for Umeme to bring down losses while it trapped itself in a situation where any increase in power availability automatically translated into a huge subsidy bill. 

“Losses are the biggest problem in the tariff, because they account for between 65 and 70 per cent of the tariff; without bringing down losses, any increase in power supply translates into more haemorrhage of public resources,” observed one commentator.

Mr Kaliisa disagrees. “It is not an issue of saying you are indemnifying them 99 per cent or they should have driven losses down, there are also triggers on the government side,” he argues.

“We had the unfortunate power deficit and when you have a power deficit, human behaviour changes, leading to an increase in power thefts. This is an issue that has been created by a lack of generation capacity; as partners, the government and Umeme agreed that these were issues beyond the distributor. Because there were circumstances that destabilised Umeme’s business, the targets had to be reviewed.”

The terms of the Umeme concession are up for review in early 2012; according to Mr Kaliisa, the strategy is to remove the high cost centres until such a time as there is no more need for a subsidy.

“When you remove the high cost centres, we shall reduce the level of subsidy, not the consumer tariff; hopefully, the regulator will then ensure that the transmission and distribution companies reduce their losses. They have to set targets — the threshold for distribution losses in 2012 is 27 per cent,” he said.

This figure is all the more puzzling because after an inquiry in 2009, Umeme adjusted its losses from the 38 per cent it had been claiming to 27 per cent in 2010. Quarterly subsidies bucked the trend, dropping from Ush33 billion ($12 million) to just Ush7 billion ($2.52 million).

The impact of power subsidies on the sustainability of Uganda’s power industry came into focus a fortnight ago, when independent power producer Aggreko threatened to switch off its 50MW plant three months ahead of schedule.

Diesel generation expensive

The firm was protesting government failure to settle $40 million it owed in arrears for diesel generation. Had the company switched off its plant at Mutundwe, Kampala would have been plunged into near permanent darkness; it took the efforts of donors to prevail on the firm not to execute its threat.

Aggreko was apparently moving to minimise its exposure after its financial analysts advised the firm to make provisions for the debt.

“We have failed to pay for diesel plants and the truth is that we cannot afford any more diesel generation,” a mid-level official at the electricity regulatory authority, ERA, said while commenting on the subsidy conundrum

In September 2008, Uganda licensed two firms — Invespro and Electromaxx — to install Heavy Fuel Oil Generation units that would inject 150 MW into the grid.

While Electromaxx has managed to set up and supply between 3MW and 5MW of  a planned 20MW, Invespro has failed to take off.

The company blames a cartel of vested interests that it says want to maintain the status quo by blocking HFO plants that would be 60 per cent cheaper to operate.

Now the company says it is stuck and cannot secure finance because Eskom has denied it an interconnection agreement.

Kabagambe Kaliisa doubts Invespro’s claims. “There is a regulator and the law is on their side, why has it not come to my attention? Besides they have a good agreement which obliges us to either take any power they produce or pay for it is we fail, what more would a financier want?” he asks.

But Invespro insists the current power crisis is the result of lack of transparency in the sector and the odd concession agreement which allows Umeme to profit from inefficiency real or cooked up.

(See related: EA plunged into darkness despite massive potential)
Additional Reporting by Esther Nakkazi

Courtesy- www.theeastafrican.co.ke

India targets 72GW of renewable energy by 2022- invites international investors

IMAGE: WINDTURBINEZONE

SEPTEMBER 21, 2011 BY PANCHABHUTHA LEAVE A COMMENT

Union Minister of New and Renewable Energy Dr. Farooq Abdullah has urged the international investor community to invest in the Indian Renewable Energy sector. He was delivering the closing plenary address at the US-India Economic Opportunities and Synergies Summit in Chicago organized by the Executives’ Club of Chicago, the Chicago Council on Global Affairs, and the FICCI. Dr. Abdullah said that the recent estimates by the Lawrence-Berkley National laboratory indicate that a potential of over 600 GW electric power capacity exists in India from wind energy alone. He said that in addition, the solar photovoltaic and solar thermal energy has the potential to generate around 50 MW per square km. of area while small hydro and Biomass could add another 40 GW capacity.

Highlighting that India today stands among the top five countries of the world in terms of renewable energy capacity, Dr. Abdullah said that India has an installed base of over 20 GW, which is around 11 per cent of India’s total power generation capacity and contributes over 6 per cent to the electricity mix. He said that investment in renewables in India grew by 25% last year and contributed nearly $3.8 billion. The Minister said that this is just the beginning as the National Action Plan on Climate Change mandates an increase in the share of renewable power in the electricity mix to 15 per cent by the year 2020.

Dr. Abdullah informed that India has set up a target of around 72 GW of renewable power including 20 GW solar capacity by 2022. He added that in the one year since the launch of the Jawaharlal Nehru National Solar Mission in January 2010, the Ministry of New and Renewable Energy has allotted 36 projects of 615 MW. This has helped in reducing the average tariff by about 30%. He said that besides this over 75 small projects of 1-2 MW each have been allotted for installation at the tail ends of the grid. Dr. Abdullah shared that the Batch-I projects have successfully reported arrangement of funds and that the commissioning of many of these projects has already begun. He said that 300 MW of grid connected solar power plants are expected before the end of 2012. The Minister added that solar thermal projects of about 500 MW capacities are also expected to be commissioned in 2013. Stating that the Mission has thrown open a large number of investment opportunities, Dr. Abdullah invited the US companies also to invest in manufacturing in India. He said India’s large solar demand will provide the committed market and its excellent manufacturing ecosystem, technical skills and cheap labour will help make manufacturing profitable and successful.

On the policy front, Dr. Abdullah said that the guidelines for selection of another 350 MW capacity of PV projects have been announced and it has been decided to increase the size of individual projects from 5 MW to a maximum of 20 MW per site. He said a company is allowed to bid for a maximum of 50 MW capacity in this batch and the Government will continue to directly purchase solar power from the project developers. He said an even more ambitious Phase –II of the Mission is being planned. Dr. Abdullah added that the National Tariff Policy to introduce solar specific renewable purchase obligations has been amended starting with 0.25% in the first phase of the Mission and leading to 3% by 2022. He said the RPO mechanism alone is expected to create a requirement of at least 30,000 MW of solar power by 2022. The Minister said that a system of tradeable renewable energy certificates has been initiated so that areas where surplus power is available can help fulfill the RPO requirements of areas where solar power is either difficult or more expensive to generate. He lauded the efforts of the State governments in India saying that they have not only facilitated the processes of the National Solar Mission but have also come out with their own supportive policies. The Minister said that the concept of solar parks as a major activity in Phase II of the Mission is being examined and the entire country will be mapped with the state of the art solar radiation measuring facilities.

Regarding wind energy, Dr. Abdullah said that with over 15 GW installed capacity, India competes globally in manufacturing and deployment and occupies the fifth position in the world. He said an attractive feed-in tariff, supportive regulatory regime, fiscal and promotional incentives provide a strong foundation for the growth of the sector. He added that the latest decision of the Government of India to incentivize generation of power by a generation based incentive will help create a level playing field between foreign and domestic investors and attract more investments in this sector.

Dr. Abdullah said that India’s surplus biomass material is estimated to be about 150 million tones which could potentially be used to generate about 16 GW of power. He said India is working towards a National Bio-energy Mission which will help device a policy and regulatory environment to provide a predictable incentive structure for rapid and large-scale capital investment in biomass energy applications and encourage development of rural enterprises for project development and sustainable operation of bioenergy systems.

On the challenges faced by the renewable energy sector, the Minister said that the main issue is to reduce the per-unit cost of renewable energy. He said a number of research projects at academic and research institutions have been sanctioned to address this issue. He said the renewable energy scenario in India is buoyant and promising and in the next year alone, India plans to add over 3 GW of renewable energy capacity with an investment opportunity of over US $ 6 billion. Dr. Abdullah added that to meet the 15% renewable targets by 2020 as espoused in the National Action Plan, an additional 50 GW of Renewable Energy based capacity is required with capital investments of around US $100 Billion. He said an investment opportunity of over 2 billion US $ is conservatively estimated in the rural clean energy sector alone. The Minister pointed out that a recent report by Ernst & Young in May 2011 ranked India as the 3rd best investment destination in Renewable Energy sector, next only to China and the USA and called upon the entrepreneurs and stakeholders to join together in this effort.

Courtesy of http://panchabuta.com

Tanzania- Aggreko to generate 100MW more by mid-October

BY FELISTER PETER

23rd September 2011

The Netherlands based firm, Aggreko plc will by mid next month pump into the national grid 100MW as part of implementing the Emergency Power Plan (EPP) endorsed by parliament last month.

Emai

According to the Managing Director of the state owned power utility firm (Tanesco), William Mhando Aggreko, which has already started adding 22MW to the national grid, will provide power at its full capacity by October 10, this year.

“We are now implementing the emergency power plan of which the deadline is December,” Mhando said, adding: “There are hopes of succession…because currently we are getting 35MW from Symbion and 22MW from Aggreko.”

The Tanesco chief executive was speaking during a Joint Energy Sector Review Workshop organized by the Ministry of Energy and Minerals in Dar es Salaam yesterday.

He said Aggreko would be generating 50MW at its Ubungo plants while the other 50MW would be produced at Tegeta.

Mhando said negotiations were going on between Tanesco and the National Social Security Fund (NSSF) to start generating the 50MW out of 150MW by next month.

He said the additional 205MW would be added to the national grid by Symbion Power after completion of the price talks currently going on between Tanesco, Symbion and the Energy and Water Utility Regulatory Authority (EWURA).

Similar negotiations were being done with other power firms namely, Wind Power East Africa and East Africa Power Pool of whom every company would generate 50MW, he confirmed.

“Our aim is to reduce power shedding, more will be done in the remaining months”, he said.

In his opening speech, Acting Permanent Secretary, Ministry of Energy and Minerals, Eliakimu Maswi said apart from weather threat and inadequate participation of the private sector, power shortage was also contributed by limited funds from the government.

Maswi said the mentioned challenges resulted into slow access expansion whereas to date only 4.5 per cent of the country’s population has access to electricity.

He said the government had taken initiatives to overcome the challenges, including encouraging the private sector to invest in power projects by developing Electricity Act, 2008 and establishment of the Rural Energy Agency, Rural Energy Fund and EWURA.

Others are grid extension and adoption of off-grid solution to rural electrification, establishment of bulk procurement of petroleum products to reduce cost and set up of a fuel bonded warehouse using TIPER facilities to enable the country have sufficient and strategic fuel stock.

“With a variety of unutilized energy sources, Tanzania is experiencing unreliable and inefficient power services. We think of devising strategies to improve energy services to enable private sector participate in the economy”, he noted.

Speaking on behalf of the Energy Development Partners Group, Senior Advisor at Swedish International Development Cooperation Agency (Sida), Samer Al Fayadh faulted the government slow pace of finding solutions, whereas according to him, some problems identified in the past two years were yet to be solved. He said the country’s electricity sector faced a lot of challenges including, low coverage, unreliable services and power rationing which had affected the economy.

He commended parliament for ensuring transparency in the energy sector.

“Power shedding damages the economy…the emergency plans needs to address current shortfalls”, he stressed.

He said that development partners would continue providing support to the government so that it reaches its economic growth targets.

Al-Fayadh advised the government to look into possible ways of enabling many people to be connected to the service as most of the households pull out of the service due to high cost of connection.

Early this month, Minister for Energy and Minerals, William Ngeleja said power rationing would ease slightly after additional 87MW from Symbion Power and Aggreko companies.

The government last month unveiled 523bn/- power rescue plan to produce 572 megawatts of power, assuring the nation that the proposal would end the power rationing between September and December, this year.

Ethiopian Electric Power Corporation signs 14 transmission contracts

14/09/2011

By Dr. Heather Johnstone -Chief Editor

Ethiopia Electric Power Corporation (EEPCo) has signed 14 contracts worth about $330m with foreign firms to improve Ethiopia’s power transmission, said EEPCO's CEO Miheret Debebe.

The contracts with companies from ten countries provide for constructing 20 high-voltage sub-stations, upgrading existing sub-stations, and installing about 1100 km of both underground and aerial transmission lines linking Ethiopia with neighbouring countries.

Indian companies took the biggest share of the contracts, closing three deals worth more than $50m, according to 2Merkato.

Companies that entered into agreements with EEPCo include Energoinvest DD, Alstom Grid, ABB and Norinco International, said the business portal. The projects are expected to be completed within 12 to 24 months.

Financing for the projects includes more than $220m from the African Development Bank and more than $20m from Chinese banks, with the balance to be provided by the Ethiopian government.

EEPCo has also announced that a feasibility study to construct a second hydropower project on the upper Nile River is nearly complete, with the project forming a central part of Ethiopia’s plans to become a regional power hub in East Africa.

The projects would enable Ethiopia to increase its capacity from its current level of 2000 MW to nearly 10 000 MW by 2016, said Debebe.

Courtesy of www.powerengineeringint.com

Date set for completion of EA power project

Published on 22/09/2011
A plan to interconnect electricity grids of countries within the larger East African region is set for completion in 2014.

By Macharia Kamau

The move will open up a platform for trade in power within the region.

A meeting on Thursday in Nairobi reported completion of studies on the design of transmission lines that were undertaken by individual countries.

Construction works on the lines is scheduled to commence next year and completed in 2014.

The transmission line will connect five countries on the Nile Equatorial Lakes countries — Kenya, Uganda, Rwanda, Burundi and DR Congo —and it is an initiative of the Nile Basin Initiative.

For Kenya, the line will start at Lessos in North Rift and run to Tororo in Uganda and onward to Rwanda, Burundi and DR Congo.

Connection lines

The line will also connect with other existing and planned electricity transmission infrastructure in Tanzania and Ethiopia.

The project has been projected to cost $363 million (Sh33 billion).

Fred Mwango, chairman Nile Equatorial Transmission Advisory Committee, said the power transmission lines would open up trade in electricity, with countries that are producing more being able to export excess capacity to neighbouring countries.

"Once constructed, the seven countries in East Africa will have their electricity grids interconnected and will form the backbone for future power trade. We expect that by 2015, we will have a regional power interconnected grid," he said.

He spoke at a meeting to evaluate progress of the project in Nairobi on Thursday.

Energy PS Patrick Nyoike said the transmission lines would enhance supply power in the region and help some of the countries bridge deficit between their installed power generation capacity and demand.

"Lack of power is a common challenge in all our five countries. We have numerous occurrences of load shedding because existing supply cannot satisfy demand," he said.

"These power grid interconnections will provide links between our electricity transmission systems and allow any two adjoining countries to share energy resources," he said.

Other than the Lesos-Tororo line that Kenya is putting up, it is also constructing a 600-kilometre line to Moyale, which is part of a 1,100 kilometre transmission line it is jointly constructing with Ethiopia.

The line is expected to see Kenya import power from Ethiopia and even redistribute further south.

Fichtner, a German engineering consultancy firm, was earlier this year given a tender to undertake the study on design. Construction works are expected begin in April 2012 and will be completed in March 2014.

"Ethiopia has huge potential in hydro power and is currently investing in. Once the transmission line is in place, it will help us cope with high demand for power," said Joel Kiilu managing director Kenya Electricity transmission Company (KETRACO).

"The line will enable other countries that are further south like Tanzania, Zambia and DR Congo tap into Ethiopian power whenever their power generation does not meet local demand."

Ethiopia potential in hydropower is estimated at 45 000 megawatts. It is currently constructing two dams expected to generate 2 150 MW when completed in 2014.

Courtesy of www.standardmedia.co.ke

Are Kenyan Engineers Capable of Building Thika Road?

Yesterday’s post at the Thika Road Blog sparked a response from @BridgeMkr

Having grown up in Kenya then gone to the US for college and worked there ever since in bridge design, I would say that the Kenyan education system was more than adequate in preparing me for engineering school and a career as bridge engineer.

Based on that, I would say that the civil engineering graduates from Kenyan Universities have the basic tools to succeed as engineers in this world.

I read a comment that Kenyan universities are preparing students for 1980’s style construction – and if that is true, then I would say that is a good thing. If one clearly understands how to design structures built in the 1980’s then they understand the basics of design and construction.

There are buildings and bridges built in the 1900’s that are still standing. Over the years, the basics in design & construction have remained the same, with the difference being how well/accurately we calculate the design loads, and how well we design the structure to withstand these loads, the safety factors we apply to them, and the materials we use to construct them. If one understands the basic principles, then the next step of understanding modern design factors, codes, and materials is very simple.

I would rather have an engineer that can design a bridge using the old code by hand, than one who can only design the bridge using modern software packages, (and who does not know how the program comes up with the solution).

China has over a billion people therefore they will have way more engineering graduates. The way forward for Kenya and Africa, is to continue to produce civil engineers who clearly understand the basics in design and construction. Some of these graduates can then go to universities aboard to get their masters and post-graduate degrees, and who can later transfer this additional knowledge back to Kenya and Africa. The graduates that remain in Kenya upon graduation should go work under the direction of more qualified engineers, who can give them guidance on how to design various basic structures at first, with the complexity of the structure increasing as their career progresses. In engineering, like most things, experience, with the ability to learn, counts the most. Those graduates that went abroad, on return to Kenya can start out designing more complex structures based on the experience gained, but should still work under the guidance of more experienced engineers.

It may surprise a few people but today in the US, there is a debate raging on whether a master’s degree in civil engineering should be the minimum qualification for someone to be a registered civil engineer. It is felt that the current undergraduate programs are not adequate, especially if the pay for civil engineers is to go up.

In order for Kenyan and African engineers and companies to compete for, and design, major construction projects like the Thika Road Project, there needs to be a requirement that Kenyan and African engineers and companies be involved in the design and construction of these projects. This can be done by requiring some portions of the project to be designed and constructed by local engineers.

Another requirement, which would add to the cost of projects, but would ensure the transfer of knowledge, is to have independent designs done by local engineers. This means, having Chinese /European/American design firms design the complex structures but at the same time have local engineers and companies independently produce designs of the same complex structure. The local firm’s designs can then the compared to those produced by the foreign firm. Another problem with design & construction in Kenya and Africa is having adequate QA/QC procedures in place to ensure that structures are designed correctly and constructed according to the engineers design using the specified materials.

Through this process, current local deficiencies (if any) would be revealed, and at the same time the local firms would learn how things are done differently by foreign engineers/firms. This design exercise cost is very small, compared to the actual construction costs and I have been involved in projects where two independent designs have been produced.

Courtesy of bankelele.blogspot.com

Seeking To Light Up Kenya

KETRACO MD & CEO Eng. Joel Kiilu during the interview with Star Business Reporter Ms. Lola Okulo 

FRIDAY, 16 SEPTEMBER 2011 00:12 BY LOLA OKULO

IN a country where even the airport is not spared from blackouts, it may seem ambitious for someone to believe that in two years time, Kenya will be an exporter of power. However if you listen to the plans one Joel Kiilu has about power transmission in this country, you may change your mind about Kenya's future energy situation because of the optimism he exudes.

Kiilu an engineer by profession and the Managing Director of Kenya Electricity Transmission Company says the firm is on course to carry out its mandate of putting up new transmission lines to ease not just supply problems but eventually even power costs. “Currently Kenya Power and Lighting Company is still the country's major transmitter of electricity as it owns most of the transmission lines that criss-cross the country,” explains Kiilu.

However, as there was need to build more transmission lines to improve supply, Kiilu adds, the government decided to set up a transmission company to compete with KPLC. He notes that competition in the sector and in areas like transmission would work well to reduce the cost of electricity in the country. And when it is cheaper, he notes, most people can access it and Kenya will be well on its way to becoming a 24-hour economy where darkness does not curtail business operations and people's movement.

According to the managing director, It was necessary that KETRACO be set up not just to compete with KPLC but also to marshal enough funding for the planned transmission lines compared to KPLC. “KETRACO's portfolio of high voltage transmission infrastructure projects is expected to construct over 4000km in the next three to four years at an estimated cost of $1300 million (Sh122.2 billion),” reveals Kiilu.

But the projects involve usage of large tracts of land and in most cases land issues in Kenya always stir controversies. This, Kiilu notes, is one of the main headaches and stumbling blocks slowing down the pace at which the company hopes to move in laying of the transmission lines. “Land is very sensitive in Kenya and to compound this problem is the fact that people fear electricity and yet we do not want to use force as we go about our duties," says the engineer.Where the line passes through private land, the firm has to offer compensation for use of that land.

On a more serious note though, while the 4000 KV line that will export power to countries like Ethiopia is expected to be operational around 2014 or 2015, there is also the planned Uganda-Kenya link which will run between Lessos in Kenya and Tororo in Uganda that is expected to start exporting power to and fro by end of 2013. To prove that KETRACO is walking the talk, the firm which is fairly new in the scene having been incorporated in 2008 has already completed four projects while another 30 are in the pipeline. It projects that its assets will grow six fold to Sh50 million within the next four years.

The firm which is currently financed by government and development partners hopes in a few years time to be fully self-dependent. “Initially we just wanted to make enough money for maintenance and depreciation,” says Kiilu. But to make KETRACO profitable, the engineer notes that wheeling (the actual transmission of power via the lines) to other regional countries will be a major cash source for the firm. It is expected that this will happen in the next seven to 10 years when the market is expected to be “fully blown.”

And that is not all. KETRACO is eyeing data business as the country becomes more technologically advanced and demand for data-related services continues to soar. In its business plans, KETRACO wants to put up fibre optic lines on top of every line it constructs going ahead as it also eyes data transfer revenues. “Kenya will become an industrialized state as vision 2030 spells out, it can be done and we are doing it,” states the KETRACO boss.

Story- Courtesy of Star  http://www.the-star.co.ke/business/profiles/40708-seeking-to-light-up-kenya