The binding Power Purchase Agreements (PPAs) between power producers and Kenya Power have been criticised for their lengthy nature and in many instances skewed in favour of the former. The firm’s PPA with Kenya Power has raised eyebrows over its lucrative nature, especially when compared with other power producers using the same energy source. According to reports, the costly power that it sells to Kenya Power informed the probe commissioned by OECD. According to the PPA between Orpower and Kenya Power, which the mother company filed with US authorities, the power producer is paid an energy charge of Sh15 ($0.0156) per unit (kilowatt hour – kWh) of electricity supplied to Kenya Power. “In 2019, KPLC (Kenya Power) accounted for 16.3 per cent of our total revenues,” said Ormat in its annual report.

Source: Standard Digital November 03, 2020 04:52 UTC