KenGen pushing for additional 560 MW development by 2019
KenGen management visiting geothermal wellhead plants, Olkaria, Kenya (source: Lydur Skulason/ GEG)
Alexander Richter
16 Ara 2014
Kenya's KenGen plans to add up to 560 MW of additional geothermal power generation capacity to the national grid by 2019 financed in parts by a planned rights issue.
Reported locally, “Electricity generator KenGen has a target to inject another 560 megawatts of geothermal power to the national grid in the next four years, which could offer further reprieve for consumers in form of lower bills.
The Kenya Electricity Generating Company (KenGen) on Tuesday said it will spend about Sh142 billion ($1.5 billion) to exploit steam power at its Olkaria geothermal field.
The increased geothermal generation is expected to offer better returns to shareholders, while helping the company to cut reliance on hydro-power generation which is susceptible to weather changes.
“We will tap indigenous geothermal power to boost our shareholder value. Our focus will be on scaling-up steam generation,” said the KenGen managing director Albert Mugo at the company’s annual general meeting.
The additional four geothermal power projects will more than double KenGen’s steam power output and comes after the company recently completed connecting the entire 280 MW from Olkaria to the national grid.
KenGen’s current installed geothermal capacity has grown nearly three-fold to 466.1MW from 157MW in December last year.
Development of geothermal power is capital intensive, but it is among the cheapest and most sustainable energy options for Kenya in the long-run.
KenGen will finance the four power projects— each delivering 140 MW of steam—using cash from the planned rights issue set to happen by the first quarter of next year.
“We have already began drilling the steam wells,” said Mr Mugo. KenGen has so far completed drilling about 50 wells out of the required 130 for the project.”
Source: Business Daily Africa
