Geothermal and hydropower revenues drive KenGen profit up by 35%
KenGen's newest 83MW geothermal power plant, Olkaria I Unit 6 (source: KenGen)
Carlo Cariaga
30 Oct 2024
Kenya's KenGen has posted a 35% increase in profit for the past year on the strength of their geothermal and hydropower generation output.
Government-owned power generation company Kenya Electricity Generating Company (KenGen) has announced a year-to-year profit increase of 35%, from Sh 5 billion to 6.8 billion (approx. USD 38.8 million to 52.7 million) for the period that ended in June 2024. The company attributed this growth in profit to the performance of its geothermal and hydropower plants.
KenGen dispatched a total of 8384 GWh of electricity for the past year, also up from 8027 GWh for the same period in 2022-2023. This was a notable feat considering the inconsistent weather conditions in Kenya in the past year. Peter Njenga, KenGen’s Managing Director and CEO, stated that KenGen’s power plants were critical in meeting the 2149 MW of peak electricity demand in Kenya for the period under review.
“This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” further stated Njenga.
A continued push for green power
KenGen has played a major role in making Kenya a leader in renewable energy in the African region. Kenya produces around 90% of its power from renewable sources and is aiming for 100% by 2030. In support of this goal, KenGen continues to build capacity in renewables in the form of solar power facilities, hydropower stations, and geothermal power plants.
Work is currently ongoing for the rehabilitation of the Olkaria I geothermal power plant to increase its installed capacity from 45 MWe to 63 MWe.. Regulatory filings done earlier this year also indicated KenGen’s plans of building the 80.3-MW Olkaria VII power plant. Moreover, KenGen is eyeing a diversification of revenues from its geothermal business by putting up a Green Energy Park in Olkaria which will supply industrial and commercial facilities with geothermal heat or power.
Source: ESI Africa and The Star Kenya
