The Energy ministry plans to supply Mombasa with power from the Olkaria geothermal fields and retire thermal plants operating in the coastal region in a fresh move to lower electricity prices.
Energy principal secretary Joseph Njoroge said the move will lower the amount of power injected into the grid from costly thermal plants, ultimately lowering the fuel cost adjustments in power bills.
Industry estimates show it costs about 9 US cents (Sh9.18) to produce one kilowatt of electricity from geothermal energy compared to 20 US cents (Sh20.4) using diesel.
The Kenyan Energy Regulatory Commission (ERC) last year said it had suspended licensing of new diesel-fired plants as the country takes a big bet on its ‘green sources’ to cut down electricity cost.
