National Cement to develop own wind power
The National Cement Company Limited, the manufacturer of Simba Cement, plans to set up a 60-Megawatt (MW) wind power plant in West Pokot County, in a move aimed at reducing costs.
The deal will see Devki Group grow its already significant footprint in Kenya’s power generation sub-sector, denying the Nairobi Securities Exchange (NSE) listed firm much needed revenue. Cement production is a high energy consumption process.
In an announcement placed in local dailies, National Cement, which is part of the Devki Group, said the power generated will be used for own consumption in their Sebit Cement Plant.
“Notice is hereby given that National Cement Company Limited…pursuant to the provisions of section 117 of the Energy Act of 2019, will on 27th July 2023 make an application to the Energy Regulatory Authority for the energy generation license for 60 MW Waste Heat Recovery,” reads the announcement in part.
30 days to for opinions
The manufacturer said after lodging the license application, the copy will be available for inspection by the public, subject to confidentiality considerations. Any entity wishing to voice objections has 30 days to write a letter to the Energy and Petroleum Regulatory Authority (Epra).
The move to build a wind power plant in West Pokot follows a similar one last year where Devki Group, through its subsidiary, Devki Steel Mills, announced plans to build a Sh260 million wind farm in Samburu, Kwale County. Electricity generated by the 60 MW Kwale wind power plant will be sold to the national grid. As of 2021, wind power accounted for 26 per cent of power consumed in the country, coming third after geothermal and hydroelectric power.
Devki’s move to generate own electricity comes at a time when the cost of electricity in the country has risen tremendously forcing manufacturers to seek alternative sources of energy.
As of end of May 2023, the average price of 50 kilowatts/units (kWh) of electricity had risen to Sh1,326.54 up from Sh796.83 in August 2022, a 66.5 per cent jump.
In the recent past, Devki Group which is widely known for steel and cement production, has been working to diversify both its energy and revenue sources.
In 2015, the company switched on a 15 MW coal power plant at its Kajiado factory for use in its clinker manufacturing facility and steel manufacturing factory.
Additionally, Devki Group in 2017 acquired Sosian Menengai Geothermal Power which is building a 35 MW geothermal plant in Menengai, Nakuru County.