KenGen to establish transformer plant
KenGen is seeking to establish a local manufacturing plant for transformers and motors to diversify its revenues that mostly come from the sale of electricity to Kenya Power.
Image for illustration purposes.
Kenya, Nairobi: KenGen is seeking to establish a local manufacturing plant for transformers and motors to diversify its revenues that mostly come from the sale of electricity to Kenya Power.
KenGen is one of the main consumers of distribution transformers and power motors alongside the likes of Kenya Power, the Kenya Electricity Transmission Company (Ketraco) and the Rural Electrification and Renewable Energy Corporation (Rerec). The company wants to set up a plant to manufacture these components locally, for its own use and for sale. The power producer has issued an Expression of Interest (EoI) for the business feasibility study. To realize the plans, the company is looking at partnerships with manufacturers of distribution transformers and power motors.
“The company is intending to set up a manufacturing plant for distribution transformers and motors and is inviting Expressions of Interest from eligible consultancy firms to offer feasibility study on factory start-up for transformers and motors, from technology transfer, design layout, procurement and supply of equipment, raw material, pilot batch, and all the necessary approvals up to final production, and marketing, capacity building and partnership with other transformer and motor manufacturers,” KenGen said in a notice.
Kenya Power, the largest transformer consumer in the country, has been struggling to buy enough distribution transformers to meet demand as it rapidly expands its network. It buys thousands of transformers every year and has repair sheds for faulty transformers in major towns to save on costs.
Tenders for the supply of transformers are fiercely fought by both local and global manufacturers, with the contracts often running into billions of shillings. By 2017, Kenya Power had more than 55,000 transformers across the country, and the number has gone up with the utility’s grid expansion drive. A transformer costs about Sh 500,000 ($3267), and as the equipment is imported, prices will likely rise due to the depreciation of the local currency.
Source: Business Daily Africa