Kenya - Hoteliers look at wind energy as a means of cutting high electricity costs

With the cost of electricity rising at an alarming rate due to high fuel prices, hoteliers in Mombasa are considering using other sources of energy, including wind power.

Kenya Association of Hotelkeepers and Caterers has started a campaign for its members to set up wind generators, which would be more affordable in the long run.

The Mombasa branch chairman, Mr Mohamed Hersi, said electricity bills now took up five per cent of average gross revenue, third only to payroll and supplies.

“Hotel operations at the moment are not sustainable,” he said.

Mr Kuldip Sondhi, Mombasa and Coast Tourist Association chairman, said he is already seeking quotations on the costs involved in installing wind mills as an alternative.

He said with an average hotel requiring a constant supply of 300 kilowatts of electricity, an investment of $400,000 (Sh27.2 million) in a wind generator would be worthwhile because the generator would last not less than 20 years.

A wind generator with a capacity of one megawatt (1,000 kilowatts) would be shared by at least four hotels, and would cost slightly more than $1 million (Sh68 million), he said.

“There is definitely enough wind at the coast for between six to nine months and use of wind power would cut down costs,” he said. “We shall require government support for the initiative because with the high cost of fuel, alternative sources of power is the way to go,” he said.

According to Mr Hersi, who is also the general manager of Sarova Whitesands Beach Resort, between January and last month, fuel adjustment cost on electricity bills went up seven times.

“We are seeking alternatives out of desperation and the Government has to decide whether it wants KenGen and Kenya Power and Lighting Company (KPLC) to continue making profits at the expense of businesses,” he said.

He said the hotel sector, which is yet to recover from the effects of post-election violence cannot shoulder the high cost of power. “I used to pay an average of Sh2.4 million but the bill has now shot to Sh5.5 million,” he said.

He noted that with operational costs in South Africa and Egypt — Kenya’s main competitors in the tourism industry —being four to five times less, the country’s industry will continue to be an expensive destination as well as being unfriendly to investors.

“High operational costs in the country have scared away investors with world renowned hotel chains such as Hilton and Sheraton preferring to invest in countries who are our competitors,” he said.

Tourism minister Najib Balala said the ministry welcomed the proposal for alternative energy, saying that there was need to diversify power generation. “We cannot only rely on hydro electricity. There is need to explore other sources of electricity including solar and even nuclear,” he said.

High cost of electricity has been partly due to high world fuel prices. Despite the fall in international crude oil prices, oil marketers in the country have been reluctant to reduce pump prices, with Shell Kenya being the only company that has adjusted prices downwards by only Sh2.