KenGen commissions 280 MW geothermal power plant in Kenya

The Olkaria power generation plant.

The Kenya Electricity Generating Company (KenGen) has launched the 140 MW Oklaria 1 power plant, the last phase of the 280 MW geothermal facility.

The World Bank aided Olkaria project is considered as one of the largest single geothermal investment in the world.

The plant comprises of Olkaria IV and units four and five of Olkaria I, each with a generating capacity of 70 MW.

KenGen is adding 1575 MW of power geothermal power to the national grid, surpassing hydro for the fourth month in a row.

According to the KenGen, at 7.2 US cents per KWh, geothermal energy is among the cheapest renewable sources of electricity in the country and the world.

The electricity production in Kenya from hydropower has now been downgraded to second place at 36 percent due to lower levels of rainfall in recent months, said KenGen.

The plant located in the Rift Valley of Kenya is expected to boost the geothermal production in Kenya to 51 percent.

Kenya’s government enhances geothermal energy development in the state by backing up projects like 1,600 MW Menengai plant run by the Geothermal Development Company.

According to a renewable energy study, geothermal will be the second-largest source of power supply in East Africa, mainly in Kenya and Ethiopia.

In 2010, geothermal power accounted for just 13 percent of Kenya’s overall energy mix.

The study also reveals that an additional $450 billion in power sector investment will lift the economy in sub-Saharan Africa by around 30 percent in 2040.

In addition, the US Agency for International Development and the Geothermal Energy Association launched the US-East Africa Geothermal Partnership in 2012, implemented by the US Energy Association.

Other partners in the project include the Japan International Cooperation Agency, the European Investment Bank, the French Agency for Development and the German government-owned development bank KfW Entwicklungsbank.

Through its International Development Association, the World Bank provided funding for feasibility studies, exploration, geothermal steam development and construction of power plants.

In addition, the bank’s Multilateral Investment Guarantee Agency provided investor risk mitigation.

In another development, the African Development Bank approved a $12.7 million partial risk guarantee (PRG) for the initial phase of the first 105 MW of electricity from plants operated by three power producers at Menengai.

Besides, under the Geothermal Risk Mitigation Facility for East Africa, several grants have been awarded to encourage geothermal development. Grant beneficiaries have included Kenya and Ethiopia.

Sabeena Wahid
[email protected]