By John Njiraini
Kenya Electricity Generating Company (KenGen) plans to produce an additional 500 megawatts (MW) to ease the energy crisis.
KenGen Managing Director Eddy Njoroge said the investments would enable the company play its role of stabilising power supply.
"The investment will guarantee enough additional and affordable capacity to cope with the anticipated rising demand at eight per cent annually," he said.
Last week, President Kibaki commissioned the 60 MW Sondu Miriu Power project that is expected to ensure constant supply of electricity in Nyanza and Western provinces.
KenGen has already identified key sources in new geothermal, thermal and wind power generation and is in the process of seeking funds to implement the projects, some of which are ongoing.
Some of the projects include Kipevu 3 thermal with a 120 MW capacity to be commissioned in October next year and a 5 MW wind plant to be commissioned later this year.
Other projects include Olkaria II third unit with a 35 MW capacity, Eburu 3 MW and Olkaria 4 with 140 MW.
"The projects are part of our strategy of diversifying power sources to reduce dependence on hydro, which suffers when rainfall is below expectations," said Njoroge.
The power producer is awaiting approval from the Capital Markets Authority to float a Sh15 billion bond.
Electricity Prices
The investments come at a time when the country is experiencing a biting energy crisis that has seen electricity prices increase due to dependence on thermal generation.
The situation will worsen if the short rains expected in October through December are not enough and oil prices in the international market continue on an upward trend.
This is because KenGen has shut down generation at Masinga power station and might be forced to close down Kamburu, if water levels continue to drop.
