NAIROBI: Kenya Electricity Generating Company (KenGen) has signed an agreement with Power Africa-Kenya to add 2,500 megawatts to the grid from geothermal sources by 2025.
The agreement will see the US President Barack Obama-led initiative provide KenGen with project development team and experts in geothermal and solar power to help realise the goal of boosting green energy.
Speaking during the signing of the agreement, KenGen Managing Director Albert Mugo said the project will focus on exploiting the huge potential of geothermal power in Rift Valley estimated at 10,000 MW.
“Despite the fact that geothermal power is cheap, renewable and environment friendly, only 6.5 per cent has been utilised in Kenya. Our partnership will help KenGen to leverage on its capacity to generate more clean energy and revenue,” said Mugo.
Through the partnership, he added, the company hopes to improve operational efficiency and effectiveness by adopting international best practices for renewable energy project development.
Projects that are set to benefit from the partnership include 140 MW Olkaria V, 70 MW Olkaria 1 Unit 6, refurbishment of 51 MW Olkaria I and phase I of the 100MW Meru Wind Farm set for completion in 2018.
The projects require about Sh900 billion ($9 billion). Mugo said the firm is considering various financing options such as public-private partnerships so as to meet enormous cash requirement.
US Ambassador to Kenya Robert Godec said that Power Africa has access to tools and global capabilities able to meet KenGen’s specific needs. “Power Africa-Kenya, through its ongoing development programmes, aims to support KenGen in meeting its development goals, and will further seek to align its programmes across all US government agencies with KenGen’s priorities,” Godec said.
The Government aims at injecting over 5,000 MW into the national grid mainly from green sources as it targets to become a front runner in championing the course for green energy.
KenGen’s geothermal capacity currently stands at 514MW and accounts for over half of the power consumed in Kenya. The country’s total geothermal power output is 614MW, making it the eighth largest geothermal power producer in the world and the highest in Africa.
Following the signing of multi-billion dollar Power Africa Act into law by President Obama, Kenya stands to benefit from the initiative alongside other five African countries.
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