Nairobi, Tuesday, March 19, 2024: Kenya Electricity Generating Company PLC (KenGen) has awarded a multibillion contract for the rehabilitation of Kenya’s oldest geothermal power plant aiming to increase its output from 45MW to 63MW in a move to accelerate the country’s transition to green energy.
The NSE-listed electricity generator said the strategic initiative is poised to elevate the power plant's operational efficiency and increase electricity generation output by up to 40% compared to existing conventional models whose first unit was commissioned in 1981 and has since been decommissioned.
In the tender, SEPCOIII Electric Power Construction Co., Ltd will be the Engineering, Procurement, and Construction contractors (EPC) whereas Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) has been awarded the contract to supply steam turbines and generators for the three units of the power plant.
KenGen’s Managing Director and CEO, Eng. Peter Njenga expressed his enthusiasm for the project, stating, "The renovation of Olkaria I represents a historic milestone for KenGen as we continue our commitment to sustainable energy solutions. By leveraging the latest advancements in geothermal technology, we aim to not only enhance the performance of the plant but also set new standards for renewable energy production in Kenya."
The modernization project, scheduled for completion by December 2026, is designed to align with Kenya's broader energy objectives and the Vision 2030 initiative, which envisions a transition to 100% green energy by the end of the decade.
“As the oldest geothermal power plant in Africa, Olkaria I holds significant historical importance and stands as a testament to Kenya's pioneering efforts in renewable energy production and therefore the excitement for us to have this power plant back on the grid,” said Eng. Njenga.
The KenGen CEO expressed confidence in the project citing resource availability and the company’s highly skilled expertise. He said: “Having operated for more than 40 years, this confirms the sustainability of geothermal coupled with the skills set and human resource capabilities that KenGen has developed over the years, we are confident the project will be completed on time and within budget.”
Through this comprehensive renovation, KenGen aims to not only extend the operational lifespan of Olkaria I but also establish a model for sustainable energy development that can be replicated across the region as Kenya angles to exploit the 10,000MW of geothermal potential in the Rift Valey region of Kenya.
By prioritizing innovation, efficiency, and environmental responsibility, KenGen is paving the way for a greener, more sustainable future for Kenya's energy landscape.
. . . Ends …
Note to Editor:
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
Today, KenGen PLC has an installed generation capacity of 1,904MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (799MW), Wind (25.5MW). The balance is from Thermal.
For media queries please contact:
Frank D. Ochieng, Tel:0721816896 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
Nairobi, Thursday February 29, 2024: Kenya Electricity Generating Company PLC (KenGen) has announced a commendable half-year performance, marked by a notable 8.4% surge in net revenue, reaching Ksh.24.7 billion for the six months ending December 31, 2023.
The NSE-listed energy generator attributed the positive outcome to favorable hydrology and heightened plant efficiency, setting the stage for sustained growth in Kenya's energy sector.
“The operational environment for the aforementioned period was characterized by heavy rainfall that led to an increase in water levels within our hydro dams thus boosting hydro-generation by a remarkable 7%. This substantial boost in hydro-generation played a key role in mitigating the high fuel costs associated with thermal generation, which saw a commendable dip of 3.5%,” said the Managing Director and CEO, Eng. Peter Njenga.
Overall, electricity units generated demonstrated a modest improvement of 0.3%, reaching 4,211GWhs. KenGen reported that the national electricity demand continued its upward trajectory, peaking at 2,170.56MW on December 19, 2023, underlining the growing significance of KenGen's role in meeting the energy needs of the nation.
Net revenue's robust growth, reflecting the impact of favorable hydrology and enhanced plant efficiency, is mirrored in the 1.8% improvement in profit before tax, which grew from Ksh.4.7 billion in 2022 to Ksh.4.8 billion in 2023.
The company’s operating landscape however witnessed a 16.4% increase in operating expenses, predominantly influenced by higher plant operating and maintenance costs stemming from the global macro-economic pressure.
At the same time, KenGen’s positive momentum was slowed by tax expense which surged by 25.7%, escalating from Ksh.1.48 billion in 2022 to Ksh.1.8 billion in 2023, primarily due to an increase in unrealized foreign exchange losses that are disallowable for tax purposes among others. Consequently, Profit after tax declined by 9.2% from Ksh.3.3 billion in the corresponding period of 2022 to Ksh.2.9 billion in 2023.
KenGen maintains a positive outlook, underscoring the escalating national demand for clean electric energy citing noteworthy projects, including the rehabilitation of the Olkaria I geothermal power plant which KenGen says is well on schedule.
At the same time, KenGen says its Olkaria uprating project which aims to increase the combined capacity of two geothermal power plants from 300MW to 340MW is expected to be complete by December 2026.
. . . . . . . . . Ends ….......
Note to Editor:
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
Today, KenGen PLC has an installed generation capacity of 1,904MW, of which over 86% is drawn from green sources namely: Hydro (826MW), Geothermal (799MW), Wind (25.5MW). The balance is from Thermal.
For media queries please contact:
Frank D. Ochieng, Tel:0721816896 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
Page 2 of 32
News Highlights
