- The Africa Energy Awards recognise outstanding achievements in African power
- Aggreko was recognised for its 140 MW rental power plant in Kenya
- The power plant, delivered in just two months, is helping to reduce load shedding
Johannesburg, South Africa, March 2010 - Aggreko, the global leader in the provision of temporary power and temperature control services, has been recognised for its rapid response capability by the Africa Energy Awards 2010, which recognises special achievements to Africa’s power industry. The awards, decided by an independent panel of judges, are a part of the Power and Electricity World Africa trade show and exhibition. Aggreko won the “Best Fast-Track Power Project in Africa” award for the rapid design, installation and commissioning of two rental power projects with a total power capacity of 140 MW.
A year-long drought in Kenya had caused the reservoir levels in hydroelectric dams across the country to drop, resulting in reduced power capacity. Kenya Electricity Generating Company Ltd. (KenGen) issued a public tender for the supply of 140 MW of power, to be commissioned within two months. Aggreko, one of nine bidding companies, won the competitive tender based upon its price, previous record of reliability and fast-track ability. Aggreko’s cost-effective solution enabled KenGen to add 140 MW of power to the national grid within just two months, greatly reducing load shedding in the country.
Commenting on the project, KenGen’s Operations Director, Richard Nderitu, said:
“Kenya has experienced severe drought twice over the last 10 years. In both periods, Aggreko has performed beyond expectations and continues to do so. It is instructive to note that the contract was awarded following a public competitive tender process... the winner providing the most competitive bid price.”
Accepting the award, Robin James, Business Development Director, Aggreko Africa, commented: “I am extremely proud to accept this award on the behalf of all the employees at Aggreko who have worked hard to deliver this project. Aggreko has been working in Africa for over 10 years, providing grid support to reduce load shedding, and this award highlights our position as global leader in rental power. Having opened a permanent depot in South Africa in 2009, we are in an even stronger position to respond rapidly and effectively to any power requirement in this and neighbouring regions.”
By providing a fast-track power solution to KenGen and limiting load shedding caused by the most recent drought, Aggreko has helped reduce production losses for all industries operating in the country, ultimately saving the country from substantial GDP losses.
The cost implications of not implementing a rental power solution to combat load shedding were laid out in the 2000 World Bank report regarding the proposed credit to Kenya of funds for an emergency power supply project. Due to a power generation system that was primarily reliant on hydropower, which was no longer available due to droughts, and several long delays to new long-term power stations, Kenya had found itself in a power crisis situation.
An extensive load shedding program had to be introduced which meant that domestic consumers received power supply for approximately 15 hours per day. Industrial consumers received even less - only eight hours per day on alternate days. The impact of the load shedding on industries, businesses, commercial activities such as tourism, hospitals and the water supply, as well as domestic customers, was severe.
The economic costs of unmet demand during this power crisis were estimated by the World Bank at 3.8% of GDP or USD 400 million over a period of nine months, a sum which is equivalent to USD 910 million in today’s currency. (calculation based on an estimated unit cost of unserved energy in Kenya of US$0.50/kWh. If the estimated unit cost from the 1993 Electricity tariff study, at US$0.79, is used, the total losses to the economy would be 6% of GDP, USD 630 million or USD 1.43 billion in today’s currency).