• April 23, 2024
  • Last Update April 23, 2024 10:40 PM
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KenGen awards multimillion tender to renovate Olkaria 1

KenGen awards multimillion tender to renovate Olkaria 1


Tuesday, March 19, 2024

KNA by Kiptanui Cherono

Kenya Electricity Generating Company PLC (KenGen) has announced that it is going to rehabilitate Kenya’s oldest geothermal plant, Olkaria 1 in a move to accelerate the country’s transition to green energy.

In a press release placed on its Website KenGen indicates it has awarded two companies a multibillion contract to rehabilitate Olkaria one to increase its output from 45MW to 63MW.

The electricity generator said the strategic initiative was 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.

SEPCOIII Electric Power Construction Co. Ltd will be the Engineering, Procurement, and Construction contractors (EPC) while Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) will supply steam turbines and generators for the three units of the power plant.

The modernization project is scheduled for completion by December 2026 and 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, according to KenGen Managing Director Eng. Peter Njemga. Eng Njenga, who is also the Chief Executive Officer, CEO of the electricity generator enthusiastic about the project saying the renovation of Olkaria 1 represents a historic milestone for the company as it continues with its commitment towards 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, ” states Eng Njenga in the statement.

He adds that as the oldest geothermal power plant in Africa, Olkaria 1 holds a significant historical importance and stands as a testament to Kenya’s pioneering efforts in renewable energy production, and therefore, was exciting to have it back on the grid.

Eng Njenga expressed confidence in the project citing resource availability and the company’s highly skilled expertise.

“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, “he said.

Through this comprehensive renovation, the CEO says, KenGen aims to extend the operational lifespan of Olkaria I and 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.

Currently, KenGen has an installed generation capacity of 1,904MW, of which over 86% is drawn from green sources, Hydro (826MW), Geothermal (799MW), and Wind (25.5MW) and the balance emanates from Thermal.

“By prioritising innovation, efficiency, and environmental responsibility, KenGen is paving the way for a greener, more sustainable future for Kenya’s energy landscape,” adds the CEO.

According to its Website, KenGen states that its primary business was 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.

It prides itself as “the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60%.”

Courtesy; KNA

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