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.
About IFC
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
www.ifc.org
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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).
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