The Kenya Electricity Generating Company (KenGen)Plc, state-owned electricity generators, has tendered for consultants to conduct a feasibility study on the possibilities of generating electricity using liquified natural gas (LPG).
The power generating firm is also seeking to convert all thermal electricity generating plants, which run on the more expensive heavy fuel oils, to operate on natural gas.
Eventually, KenGen is seeking ideas on developing and setting up a Natural Gas plant in Kenya.
The Government of Kenya intends to create a domestic natural gas market for power generation and industrial use. This gas is to be imported as the Government progresses with the development of domestic gas resources.
The introduction of gas for power generation aims to diversify the country’s energy mix further, increase security of supply, reduce the cost of electricity, and reduce greenhouse gas emissions in line with the 2015 Paris Global Climate Change Agreement. Kenya is a signatory.
Available data shows that Kenya has a total installed electricity generation capacity of 2,763 MW, comprising 826 MW of hydroelectric power, 720 MW of thermal, 828 MW of geothermal, and 336 MW of wind power, 50 MW of solar, and 2MW from biogas.
Isolated mini-grids have a combined installed capacity of 28.5 MW bringing the total national installed capacity to 2791 MW.
To reduce the cost of power supply in Kenya, KenGen plans to study the feasibility of converting the existing 720 MW thermal plants operating on heavy fuel oil to run on natural gas.
Kenya’s power generating system is dominated by geothermal and hydropower generation, thus adequately catering for its electricity demand levels.
However, KenGen says it will be a challenge in the future to meet the system’s peaking power and loading requirements as more wind and solar power generating capacity that is connected increases rapidly.
KenGen says the challenge of more renewable energy sources logging into the system can be addressed using natural gas power plants. Natural gas is also a preferred alternative fuel for the country’s thermal power plants because it is a cheaper and cleaner fuel than HFO. The development of a local natural gas market would also provide economic benefits for other sectors, such as households and transport.
The proposed natural gas infrastructure project will have a gas import, storage, and regasification facility-either onshore storage and regasification facility, floating storage and regasification unit (FSRU), or a floating storage unit (FSU) and onshore regasification unit.
Bids documents should be submitted to the Supply Chain Director, Kenya Electricity Generating Company Plc, by 30th November 2020, on the Ground floor, KenGen Pension Plaza. Only those pre-qualified will be issued with the tender documents and invited to submit their technical and financial bids.