Kenya Electricity Generating Company (KenGen) Plc signed a Kes 709 million contract to drill three geothermal wells in Djibouti.
On Thursday, the company signed a Kes709,822, 630 contract with the Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG).
Speaking during the ceremony in Djibouti, Kenya’s Energy Cabinet Secretary, Hon. Charles Keter pointed out that African nations shared the common aspiration of delivering electricity to their people, which, he said, provided an opportunity to work together to meet the continent’s energy needs.
KenGen’s Geothermal Strides
Charles Keter highlighted the Company’s progress shedding light on Kenya’s journey in achieving electricity access throughout the country. He attributed the growth to the National Electrification Strategy (KNES) that was launched 2018 which played an important role in helping the nation achieve electrification in an economically viable manner.
In 2019, Kenya power installed capacity was 2,818.9 MW. The energy mix comprises geothermal (29%), hydro (29%), wind (12%), solar and others (2%) and thermal (28%).
KenGen has embarked on a diversification strategy, capitalizing on its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other energy-related services across Africa.
KenGen Managing Director & CEO, Mrs. Rebecca Miano said the company’s strategic plan is to harness opportunities geared towards driving growth beyond Kenya.
“It is therefore our desire that in the next couple of years, we shall have considerable presence in countries within the Continent. It is also worth noting that we are not only keen on increasing our presence in Africa, but also enhancing energy capacities across the region,” she said.
This is the third geothermal drilling contract that the power generating company has acquired in Africa. In October 2019, the company secured a Kes 5.8 billion contract to drill 12 geothermal wells in Ethiopia. While In February 2019, KenGen acquired yet another contract worth Kes 7.6 billion for consultancy services and drilling geothermal wells in South Sudan.
The company has expressed optimism in the project stating it has invested in experts with considerable experience in geothermal exploration and drilling and will build the capacities of teams from Djibouti who will be working on the project.
Earlier in the year, Kengen informed investors that it had expressed interest for tenders to drill geothermal wells in eight African states among them Sudan, Tanzania, Zambia, Rwanda, South Sudan, Uganda, Djibouti and Comoros.
Read also: KenGen Pays Kes 1.15 Billion in Dividends to Treasury
KenGen’s Expansion Projects to Boost its Income
This post was first published on The Trading Room here
