kawi254 wrote:murchr wrote:kawi254 wrote:LTWP
Power Purchase Agreement has below clause ..
"Kenyans will also have to contend with a 14 per cent inflation adjustment on the Sh8.6 per kWh as per the 20-year long Power Purchase Agreement struck between the wind farm and the government."
What does the 14% Inflation adjustment mean over a 20 year period?Is this a compound or simple interest adjustment every year? That would make the Wind Power more expensive than thermal. I think ERC/GoK/KPLC send rookies to negotiate these PPAs.
14%? Who comes up with these numbers? Another thing can KPLC choose not to buy the power?
The PPA is a 'take or pay' meaning that if the wind blows at 3a.m and LTWP generates 250MW and KPLC don't need it because we still on 12hour economy KPLC pays for the full 250mw generated but not sold...i wonder how the grid handles this 'unpredictable power'
Word bank bailed out of funding the LTWP due to the 'take or pay' PPA clause which is the clause that had GoK paying penalties for delayed transmission line
Correct me if am wrong. Surely.... in my wild imagination I imagine we are using the full capacity day and night(si ni about 3000MW?) Bulbs do not take up so much energy plus more industry runs during the day than at night.
I also imagine by now KPLC has a team dedicated to power coming in from wind and they sit someone analyzing the wind gusts experienced wherever we have these wind farms eg Ngong and LT. Is this the case?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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