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    KenGen Taps 2 Firms in Multibillion Tender to Increase Olkaria I Power Output by 40%

    Fred
    By Fred Obura
    - March 20, 2024
    - March 20, 2024
    EnergyKenya Business news
    KenGen Taps 2 Firms in Multibillion Tender to Increase Olkaria I Power Output by 40%

    KenGen has stepped up plans to increase Geothermal power production by 40 per cent from 45MW to 63MW at Olkaria I Geothermal power plant, with the award of multibillion rehabilitation contract.

    • •SEPCOIII Electric Power Construction Co., Ltd will be the Engineering, Procurement, and Construction contractors (EPC).
    • •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.
    • •Kenya has a potential 10GW of geothermal energy of which only 950MW has been exploited, with about 799MW having been developed in the Olkaria and Eburru Hill Geothermal Fields in Nakuru county.

    “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,” said KenGen’s Managing Director Peter Njenga.

    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 per cent 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.

    Through the 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.

    As part of the vision 2030 plan to transition to green energy, KenGen is angling to acquire more geothermal drilling licenses in the Great Rift Valley as part of the company’s plans to increase geothermal generation capacity which is clean and more reliable as geothermal is not dependent on weather.

    In February 2019, KenGen won a contract to offer geothermal drilling services for EEP in the Aluto-Langano geothermal fields in Ethiopia.

    At the same time, also in the Horn of Africa, under a contract signed in October 2019, KenGen has completed drilling two geothermal wells for Tulu Moye Geothermal Operations PLC (TMGO) in Ethiopia and is currently drilling the third well.

    These two projects are hinged on the Company’s diversification strategy which has led to the organization’s expansion in the Horn of Africa. Besides Ethiopia, KenGen has also secured a Ksh.709 million project to offer commercial drilling services in Djibouti.

    See Also:

    Kengen to Invest KSh 216 Billion in 4 New Geothermal Power Plants in Kenya

    The Kenyan Wall Street

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