P. Sarojini
Kenya (CWBN)_ As an attempt to promote the green energy switch, Kenya’s one of the largest producers of galvanized wire and steel products, the Thika-based Blue Nile Company, has switched to the use of solar power for production. This is one of the efforts by the organization in following the green energy policy and also to control the increasing electricity bills that cost millions of shillings a month.
The Blue Nile Company, well known for its steel products from the Kifaru brand, was split in 2006 to form two separate companies such as Blue Nile Wire Products Limited which manufactures wires, and Blue Nile Rolling Mills Limited that manufactures steel products. The industrial unit will be connected to a 1.5 mw grid-tied solar PV plant for self-utilization which is pending approval by the Energy and Petroleum Regulatory Authority (EPRA).
At present, Blue Nile is the largest maker of hot dipped galvanized wire accounting for an average of minimum 3,000 tones each month. In June, in response to growing market demands, the company launched a new galvanized production unit on its ten-acre Thika property. Galvanized wire, which is the main raw material used to make barbed wire, chain ties, mesh, etc, has been imported in bulks by Kenya for decades. The government has since levied a 25 percent import duty on galvanized wire to reinforce Kenya’s capacity and boost local development.
Blue Nile manager Ibrahim Kanyingi said that the latest galvanizing wire unit at Thika property is entirely powered by solar energy. While addressing the media, Kanyingi said, “Blue Nile has embraced green energy and thus embarked on usage of solar power in production. We are now the biggest solar power producer in the private sector”. Kanyingi added that Blue Nile in addition to solar power has an LPG line as well. He said, “Entrepreneurs and small scale manufacturers are now able to purchase the galvanized wire in small and big quantities based on their financial muscle”.
With the availability of the raw materials in the local markets, the entrepreneurs began to import machines to make fencing products such as chain links and mesh. One of the major issues faced by the local manufacturers is the cost of power bills. In the past five years, the commercial and industrial consumers, who number about 3,900 and consume increased power, raised their electricity usage by 10%.
The government initiated an energy rebate scheme last year, enabling industries to deduct up to 30% of their electricity expenditures from their taxable profits. Industrialists have, however, created a tremendous thirst for renewable energy sources as they reduce carbon emissions as well as cost-effective and environmentally friendly.
