1. REVENUE BUDGET PRESENTATION 2019/2020
JOH-KGN JvW-X1
REVENUE BUDGET PRESENTATION 2019/2020

2. COMPONENTS OF REVENUE BUDGET
Revenue Budget = Capacity + Energy +Steam + Other Revenues:
Capacity Revenues
Predetermined in the PPAs
Escalations for inflation
Maintenance Periods
Energy Revenues
Load factors
Maintenance periods
Steam Revenues
Load factor for the respective plants
Year of operation as per the GDC contract.
Other Revenues - Finance to provide
Steam Sales
Other consultancy services
Geothermal spa
Forex Adjustments
Interest

3. ASSUMPTIONS AND ISSUES
Near normal Hydrology assumed
Large Hydros Load factor assumed - 40%
Well Head load factor assumed to be 70%
Olkaria I & II Geothermal plants load factor assumed to be 70%
Olkaria IAU & IV Geothermal plants load factor assumed to be 70%
Muhoroni GT:
GT1 active Load Factor of 20% at Muhoroni
GT2 active Load Factor of 20% at Muhoroni
GT1 reactive Load Factor of 10% at Muhoroni
GT2 reactive Load Factor of 10% at Muhoroni
KDP I and KDP III Load Factor of 10%.
Escalation at 1.25% for FOMCR and VOMCR.

4. ASSUMPTIONS AND ISSUES
Load factor of 30% for Ngong I Phase I and 35% for Ngong I Phase II and Ngong Phase II - micro siting affected the load factors.
Normal maintenance to be undertaken in accordance with the schedule.
Lake Turkana wind load factor of 60% and 300MW assumed.
Garissa Solar power Load Factor of 30%, 8 hour per day of sunlight, capacity of 40MW
Importation from Ethiopia-400MW not factored in. More information on the status of the 400 KVDC line awaited.
Future of Olkaria I not clear at the time of budgeting-whether refurbishment will happen or not.
Actual prevailing capacity of the wellheads is not clear: some issues need to be addressed. CoD, capacity, well connection and GDC Contract.

5. CAPACITY REVENUES 2018/2019

6. CAPACITY REVENUES 2017/2018- ACTUAL VS BUDGET PERFORMANCE
Generation Mode
Budget 2017/2018 (Mil)
PPA Revenues (Mil)
Actual Revenues (Mil)
%Var Budget vs Actual) (Mil)
%Var PPA vs Actual) (Mil)
Main Hydro
7,907.97
7,948.92
7,127.24
-9.87%
-10.34%
Geothermal
11,155.49
11,198.17
11,176.93
0.19%
-0.19%
Thermal
3,648.26
3,720.79
2,855.92
-21.72%
-23.24%
TOTAL
22,711.71
22,867.87
21,160.09
-6.83%
-7.47%

7. PROJECTED CAPACITY REVENUES 2019/2020 & HISTORICAL
Financial Year
FY 2019/2020
FY 2018/19
FY 2017/18
FY 2016/17
Hydros
8,372,811,105
7,791,365,044
7,576,625,151
7,690,304,324
Geothermal
18,752,734,619
11,004,824,931
10,962,871,320
10,909,995,677
Thermals
4,168,746,365.03
3,646,107,170.76
3,574,237,003.93
3,533,015,994
Total Capacity Revenues
31,294,292,090
22,442,297,147
22,113,733,476
22,133,315,997

8. GRAPHICAL PRESENTATION OF PROJECTED CAPACITY REVENUES

9. PREVIOUS REVENUE BUDGET PERFORMANCE AGAINST ACTUALS
Capacity Revenue Kshs M
Year 
Actual
Budget
Variance %
Comments on the variance
13,288
14,903
-11%
GTs and Olkaria II breakdown
19,102
20,564
-7%
280 MW inspection, GT breakdowns
21,253
22,580
-6%
Breakdowns on Olkaria I AU 4&5 and Olkaria IV, Kipevu I DG3 and Masinga. Generally within tolarable limits
21,909
22,133
-1.23%
Within Budget
21,160
22,711
-6.83%
Delayed GT2 Relocation, Lack of reactive revenues, Kipevu I DG3, Poor Hydrology.

10. ENERGY REVENUES
2018/2019

12. YEAR HYDRO (GWh) GEO (GWh) THERMAL (GWh) WIND (GWh) TOTAL (GWh)
GROWTH IN BUDGETED NEO
YEAR
HYDRO (GWh)
GEO (GWh)
THERMAL (GWh)
WIND (GWh)
TOTAL (GWh)
3,578.77
1,591.10
1,206.20
14.48
6,390.55
3,365.21
3,042.60
707.81
58.01
7,173.63
3,359.55
3,635.83
362.52
66.62
7,424.52
3,233.63
3,901.54
339.5
66.43
7,541.10
3,188.19
3,645.63
7,323.24
3,259.93
3,798.48
511.58
75.95
7,645.95
2,846.08
3,978.74
241.62
76.16
7,142.59

14. ENERGY REVENUES 2017/2018- ACTUAL VS BUDGET PERFORMANCE
PPA
Budget (Mil)
PPA Revenues (Mil)
Actual Revenues (Mil)
%Var Budget vs Actual)
%Var PPA vs Actual)
Main Hydro
95.86
115.27
96.09
0.24%
-16.64%
Sangoro
768.01
827.80
856.68
11.55%
3.49%
Olkaria I
719.75
728.94
582.87
-19.02%
-20.04%
Olkaria I AU
1,048.87
1,067.29
1,070.51
2.06%
0.30%
Olkaria II
79.44
81.73
86.61
9.03%
5.97%
Olkaria IV
1,153.78
10.00%
8.10%
Kipevu I
32.54
53.07
74.42
128.66%
40.21%
Kipevu III
176.06
256.38
493.04
180.04%
92.31%
Muhoroni GT 2 (Active)
52.15
26.41
35.09
-32.70%
32.87%
Muhoroni GT 2 (Re-active)
12.73
11.51 - %
Well Heads
3,156.41
3,034.63
3,033.38
-3.90%
-0.04%
Eburru
127.82
115.36
53.93
-57.81%
-53.25%
Ngong I(Ph. 2) + Ngong II
548.19
558.15
343.38
-37.36%
-38.48%
Isolated, Small Hydros & Ngong I Ph I
287.39
670.27
311.51
8.40%
-53.52%
TOTAL
8,154
8,614
8,191
0.46%
-4.91%

15. PROJECTED ENERGY REVENUES 2019/2020 & HISTORICAL
GENERATION MODE
FY 2019/2020
FY 2018/19
FY 2017/18
FY 2016/17
Main Hydros
111,238,713
95,997,012
95,859,377
93,972,022
Sangoro
869,163,624
775,069,382
768,008,693
764,429,609
Thermals
204,366,318
310,998,555
260,755,408
438,828,830
Geothermals
3,446,689,313
2,297,808,623
2,177,168,090
2,239,554,834
Energy PPA
709,353,756
657,661,138
287,385,935
545,545,414
Olk I
728,689,349
700,910,851
719,751,910
553,895,125
Wellheads
3,072,104,719
3,235,576,080
3,156,413,370
3,204,162,720
Eburru
118,660,117
127,823,000
126,582,000
Ngong I PhII & Ngong II
659,405,978
547,646,487
548,192,613
462,301,389
GT Reactive
29,053,009
22,578,326
12,727,514
66,737,634
Total Energy Revenues
9,948,724,896
8,772,069,454
8,154,085,910
8,496,009,577

16. Previous Budget performance against Actuals
Energy Revenues Kshs M
Year
Actual
Budget
Variance %
Remarks
2,982
3,267
-8.72%
KDP III- dispatch lower than budget.
Well Heads- project delay
Sangoro- Project delay.
3,728
5,311
-29.81%
Low GT availability and Olkaria II. Also delay in well head commissioning
6,206
7,059
-12.08%
Low dispatch from thermal & wind plants.
8,468
8,767
-3.41%
7,293
8,337
-12.53%
Poor Hydrology majorly contributed to the variance
8,191
8,154
0.46%
Performance within budget

17. STEAM REVENUES
2018/2019

18. STEAM REVENUES 2019/2020
Source
FY 209/2020
FY 2018/19
FY 2017/18
Steam Revenue USD
22,677,364
26,864,653
25,900,097
Steam Revenue
2,689,837,344
2,767,059,302
2,667,710,020

19. SUMMARY OF ALL REVENUES
GENERATION MODE
FY 2019/2020
FY 2018/19
FY 2017/18
FY 2016/17
Total Capacity Revenues
31,294,292,090
22,442,297,147
22,113,733,476
22,133,315,997
Total Energy Revenues
9,948,724,896
8,772,069,454
8,154,085,910
8,496,009,577
Steam Revenue
2,689,837,344
2,767,059,302
2,667,710,020
2,744,040,376
TOTAL
43,932,854,330
33,981,425,903
32,935,529,406
33,373,365,950

20. REVENUE BUDGET LIMITS FOR EACH PROFIT CENTRE
2018/2019

21. TARIFF COMPONENTS Energy Charge Budget Maximum Capacity Charge
JOH-KGN JvW-X1
TARIFF COMPONENTS
Fixed O&M Revenue (FOMCR)
Variable O&M Revenue
(VOMCR)
Capacity Charge
Energy Charge
Staff Costs
Insurance Costs
Land Rents
Maintenance Costs
Chemicals
Lubricants Costs
Casuals
Budget Maximum
TARIFF
Capacity charge rate (CCR)
Power Plant
Civil Works
Consultancy Cost
Land Costs
Working Capital
Transmission Lines
Interest During Construction
Cost of Equity During Construction
Variable Operating Expenses
EXPENSES
Savings
Fixed Operating Expenses

22. REVENUE BUDGET LIMITS CAPACITY PLANTS
RESERVED for debt, interest payments + profit FCC
FOMC
VOMC
Available for O&M Expenditure
Masinga
293,560,000
112,022,271
5,270,630
117,292,902
Kamburu
660,510,000
175,126,647
11,629,152
186,755,799
Gitaru
1,585,224,000
838,917,231
31,657,547
870,574,779
Kindaruma
517,399,500
273,813,263
10,624,850
284,438,113
Kiambere
120,359,6000
636,955,675
241,757,22
661,131,399
Tana
146,780,000
77,131,965
3,014,142
80,146,107
Sondu
440,340,000
233,032,564
9,042,425
242,074,990
Turkwel
770,595,000
407,806,987
15,824,244
423,631,232
TOTAL
5,618,004,500
2,754,806,606
111,238,713
2,866,045,319

23. REVENUE BUDGET LIMITS CAPACITY PLANTS
RESERVED for debt, interest payments + profit FCC
FOMC
VOMC
Available for O&M Expenditure
Olkaria II
2,872,339,000
842,204,425.85
78,480,088.60
920,684,514.45
Olkaria I AU
2,724,853,600
950,533,578.68
1,071,245,730.24
2,021,779,308.92
Olkaria IV
3,101,901,600
933,428,055.28
1,075,856,544.00
2,009,284,599.28
Olkaria V
6,142,234,200
1,185,240,160.00
1,221,106,950.00
2,406,347,110.00
TOTAL
14,841,328,400
3,911,406,220
3,446,689,313
7,358,095,532.64

24. REVENUE BUDGET LIMITS CAPACITY PLANTS
RESERVED for debt, interest payments + profit FCC
FOMC
VOMC
Available for O&M Expenditure
Kipevu I
369,831,600.00
489,736,021.59
21,184,335.91
510,920,357
Kipevu III
1,650,885,950.00
727,835,000.00
109,614,987.00
837,449,987
GT 1 , Muhoroni ( active & reactive)
320,905,200.00
364,695,279.38
38,358,326.16
403,053,606
GT 2, Muhoroni (active & reactive)
114,609,000.00
130,248,314.06
35,208,668.88
165,456,983
TOTALS
2,456,231,750
1,712,514,615
204,366,318
1,916,880,933

25. REVENUE BUDGET LIMITS ENERGY PLANTS FCC O&M = FOMC+VOMC TOTAL Sangoro
631,973,664
237,189,960
869,163,624
Sagana
16,945,260
74,306,212
91,251,472
Mesco
4,522,601
19,831,938
24,354,539
Wanjii
85,231,874
373,748,038
458,979,912
Sosiani
2,119,100
9,292,411
11,411,512
Gogo
22,907,082
100,449,240
123,356,322
Olkaria I
99,142,445
629,546,904
728,689,349
Well Heads
3,072,104,719
Eburru
118,660,117
Ngong I(phase I)
64,375,301
24,901,935
89,277,236
Ngong I(phase 2)
153,240,394
36,802,520
190,042,914
Ngong Ii
306,480,787
73,605,040
380,085,828
Garissa
Lamu
Ndula
4,577,703,344
1,579,674,198
6,157,377,542

26. JOH-KGN JvW-X1
Thank You