Aggreko wins ‘Best Fast-Track Power Project’ Award
- 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
23 March 2010, Johannesburg, South Africa -
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.”
Background Information
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).