KenGen plans rehab, uprating of existing geothermal plants

KenGen plans rehab, uprating of existing geothermal plants Olkaria I Units 4 & 5 Geothermal Plant (source: KenGen)
Carlo Cariaga 1 Dec 2022

KenGen is planning for the rehabilitation of Olkaria I and uprating of turbines of Olkaria IAU 4 and 5 and Olkaria IV to increase their capacities.

In an earning reports, government enterprise KenGen announced plans for increasing the capacity of existing geothermal facilities in Olkaria, Kenya. These plans include the redevelopment the Olkaria I geothermal power plant and the uprating of Olkaria I Additional Units 4 and 5 and Olkaria IV.

The 45-MW Olkaria I (Units 1, 2, and 3) was the first geothermal power plant in Africa and was commissioned in 1980. With 40 years of operation, KenGen intends to address the years of wear and tear and restore the plant to its former glory. This is also an opportunity to upgrade its current capacity to a target of 50.7 MW. The KenGen website’s Projects section indicates that the company is currently in the process of procuring a contractor to carry out the rehabilitation.

Turbine uprating is planned for Olkaria I Additional Units 4 and 5 and Olkaria IV. Although the earnings report announced these plans for the coming year, KenGen had originally solicited for Expressions of Interest for this project back in 2020. This project aims to increase the capacity of the two geothermal power stations from the current 280 MW to 320 MW.

Meanwhile, KenGen reported a Ksh 4.7 billion (approx. USD 38.3 million) profit for the period ending on June 30, 2022. The tax reduction from the commissioning of the 86-MW Olkaria I Unit 6 contributed to this 157% year-on-year profit increase. Revenues continued to grow from the company’s investments in geothermal, despite low generation from hydropower plants.

“KenGen has strong business fundamentals, posting stable results backed by its growth, innovation, and expansion strategy. We are pleased to report growth in profit after tax for the year ended June 30, 2022, despite prolonged drought which has affected hydropower generation during the period under review. We look forward to a promising year ahead buoyed by expected increased economic activities.” commented the newly appointed KenGen Acting Managing Director Abraham Serem.

Source: KenGen