Page 10 - AfrElec Week 44 2020

AfrElec NEWS IN BRIEF AfrElec

GENERATION Statistical and Economic Research’s (ISSER) INVESTMENT
Social Development Outlook 2015 reports,
Ghana releases $130mn the Ghana government recorded GH¢924 Iberdrola launches €75bn
million losses in 2014 alone as a result of the
to ECG for efficient power power crises. investment plan to 2025
supply as a firm commitment to

The Ghanaian government has approved TARIFFS economic recovery
US$130 million for the Electricity Company
of Ghana (ECG) to help the power generating Kenyan regulator agrees to Iberdrola has launched a historic investment
firm replace its obsolete equipment, to reduce plan worth €75bn for the period 2020-2025,
power losses, and ensure sustainable power 20% bill increase with the aim of anticipating and taking
generation. advantage of the opportunities created by the
John Peter Amewu, the Minister of Energy The Kenyan energy regulator has approved energy revolution facing the world’s major
said it would ensure efficient transportation higher electricity prices in the wake of economies.
of electricity, add value to power generation renewed push by Kenya Power to have the 90% of this investment volume - €68bn
and ensure cheaper electricity supply to charges increased by at least 20 percent. - will be organic and will be aimed at
consumers. Sources at the Energy and Petroleum consolidating its business model, based on
He noted that the stable power supply Regulatory Authority (EPRA) told the more renewable energy, more networks, more
Ghanaians are currently enjoying was due to country’s Business Daily that the regulator had storage and more intelligent solutions for its
Inter-Ministerial and agency collaboration agreed to offer the utility a tariff hike, more customers.
and placing competent people in the right than one year after Kenya Power submitted its The rest, €7bn euros, corresponds to
position to deliver quality services as well as application. the recently announced acquisition of
the effective leadership provided by President The higher tariffs will be revealed in American company PNM Resources. This
Akufo-Addo. the coming weeks and subjected to public unprecedented rate of expenditure will
He explained that the Akufo-Addo-led participation before they take effect through a represent an average investment of €10bn per
government had tremendously improved the Kenya Gazette announcement. year between 2020 and 2022, and €13bn per
grid system thus, aiding the flow of electricity If implemented, the higher tariffs will aid year in the period 2023-2025.
to power consumers. Kenya Power’s turnaround efforts, but hurt Iberdrola’s investment strategy -together
Additionally, it had completed gas reverse household budgets and raise the already high with its efficiency policy- will continue to
flow, paid the chunk of the debts owed cost of doing business in Kenya. deliver profitable growth during the period,
the Independent Power Producers, and “We have examined and approved the while maintaining its financial strength and
transferred the Karpower Barge from Tema to application by Kenya Power which will now shareholder remuneration.
Sekondi-Takoradi to use natural gas thereby be published for stakeholder consultations,” The group expects to obtain a gross
ensuring efficient utilisation and less cost in said an EPRA source, who sought anonymity. operating profit (EBITDA) of €15bn by 2025,
power generation. “The difference between what was applied which means an increase of €5bn from 2019,
Also, the government had procured and for and what we have approved is not much. with average annual growth of 7%. Net profit
distributed 12 million energy-saving bulbs, This could have been completed earlier but would amount to €5bn, after growing annually
which enabled power consumers to use more the surge in Covid-19 cases has slowed the by between 6% and 7% during the period.
power and pay less electricity tariffs, Mr progress recently.” The presentation of the outlook to 2025
Amewu stated. has been used to review upwards the group’s
According to the Institute of Social, outlook for 2022, despite the COVID-19
context.
Thus, net profit in 2022 will be in the range
of €4bn to €4.2bn, compared to the €3.7-
€3.9bn initially foreseen.
Gross investment will rise by 35% to
€50bn, compared to the €38bn forecast,
and efficiencies will rise to around €1.6bn,
exceeding the €1.2bn forecast and maintaining
the rating at BBB+/ Baa1 levels.
IBERDROLA

COAL
ResGen loses backing for

Boikarabelo mine

Resource Generation’s (ResGen) ability to

P10 www. NEWSBASE .com Week 44 05•November•2020