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AfrElec RENEWABLES AfrElec

Kenya’s Energy Ministry in

stand-off with private power

generator LTWP over tariffs

KENYA A row has erupted between Kenya’s Energy Min- LTWP chief executive Phylip Leferink as
istry and Lake Turkana Wind Power (LTWP) saying the reduction would put the company in
after the company rejected a second government a “financially complicated situation” especially
request to reduce prices by 15% this year. lenders who financed the building of the wind
LTWP is a large independent power producer farm.
(IPP), operating a 310MW wind farm in Marsa- “A straight slash on the tariff, for us that is not
bit county in northern Kenya. on the table and the government knows it. What
The Ministry of Energy said that LTWP’s the government wants as far as LTWP is not pos-
unwillingness to support the ongoing power sible, chopping off our tariff. We cannot agree to
tariff negotiations is surprising given the scale of it because it will impede the financial integrity of
the company’s projects, the impact at a national our company,” he is quoted as saying by Business
level, and the communities that host it. Daily.
“We have engaged all IPPs in open discus- For the Ministry of Energy, renegotiating
sions, clarifying both our intent and modality. PPAs is not only a strategic objective but an
We have demonstrated goodwill towards all imperative for economic growth. The govern-
investors in the sector and expect reciprocity of ment has reiterated its commitment to delivering
the same by all investors, including LTWP,” the reduced costs of energy to drive improved global
Ministry of Energy said in a May 13 press release. competitiveness and to reduce the cost of living
LTWP signed a power purchase agreement for citizens.
(PPA) requiring Kenya Power and Lighting “Understanding the range of interests
Company (KPLC) to pay a fixed amount for involved we are engaging across all stakeholders
power. State-owned KPLC then sells the power including with the financiers in an effort to build
to consumers. comfort and achieve mutually beneficial out-
The government wants KPLC to negotiate comes. We can confirm and welcome the strong
downwards tariffs on electricity supplied by support for this process from across the board,”
IPPS to facilitate a second 15 % reduction of said the ministry.™
consumer bills, after the first 15% tranche was
implemented in January 2022.

P16 www. NEWSBASE .com Week 20 19•May•2022