Kenya Power in talks with five EV firms to boost electricity sales

Kenya Power has commenced talks with five electric mobility companies over possible introduction of their electric vehicles (EV) on Kenyan roads.

Acting Chief Executive Officer Rosemary Oduor has said the move is backed by need to diversify revenue streams and increase electricity sales with improved uptake of idle power during off-peak hours.

According to Oduor, out of the total installed capacity of 2991MW the country has an off-peak load of 1200 MW which is enough to support the entire e-mobility ecosystem, including powering charging stations for domestic and business use.

“To support the growth of electrified motorization in the country, Kenya Power has established a liaison office which will act as our one-stop shop to champion the Company’s e-mobility business. Through this office, we will work with other stakeholders to support the development of the e-mobility eco-system, which will include the identification of sites for potential charging stations, as well as requisite geo-mapping software to enable users locate the nearest charging station,” said Oduor during the flag-off of BasiGo, Kenya’s first public service vehicle EV transport firm.

Analysis by the utility indicate that Kenya Power has the capacity to charge 50,000 buses and 2 million motorcycles during off-peak hours which Oduor says provides a viable business case to promote the e-mobility agenda.

“From our initial computations on the size of business opportunity, an average minibus, operating within Nairobi, covers approximately 200 kilometers per day and consumes 120 KWh/units at a cost of Kshs.2400. 1000 mini buses, operating within the city, would therefore consume approximately 120 MWh per day,” added Oduor.

Last month, BasiGo secured Kshs. 486 million in seed funding for construction of an assembly plant and boost its its production capacity of EV buses.

Speaking during flagg-off on Wednesday, Steve Chang BasiGo General Manager, Middle East & Sub- Saharan Africa said, “Leapfrogging to mobility is very possible, and the time is now.”

Kenya Power is banking on the growth of EV market to steer its turnaround strategy after a period of losses.

The firm has since bounced back to profitability Kenya Power with a net profit to Kshs. 3.8 billion for the half year period ending December 31, 2021 which is attributed to an increase in electricity sales as well as lower operational expenses during the period under review.

The firm said electricity sales rose 8.7% as it sold 4,562 gigawatt hour during the half year period of 2021 compared to 366 gigawatt hour sold in the previous year.