KenGen seeks companies to build two geothermal power plants in Kenya

45 MW Olkaria I geothermal power plant, Kenya (source:
Alexander Richter 9 Jun 2010

KenGen, Kenya's largest electricity producer, seeks companies to build two geothermal power plants of combined 280MW. Companies interested are expected to express their interest until July 20, 2010.

Reported from Kenya, “Kenya Electricity Generating Co. Ltd., the country’s largest power producer, seeks companies to build two geothermal power plants to boost output.

The plants will generate 280 megawatts of electricity, KenGen, as the company is known, said in a statement published in the Nairobi-based Daily Nation newspaper today. Companies interested in the plants have until July 20 to express interest.

“Kenya has received financing from the International Development Association, the Japan International Cooperation Agency and the French Development Agency,” KenGen said.
Kenya is targeting 5,000 megawatts of geothermal power capacity by 2030 after a drought curbed hydroelectric output and the cost of diesel-fueled generation jumped, Energy Minister Kiraitu Murungi said on March 30. The East African nation is spending 23 billion shillings ($280 million) to mitigate the impact of a prolonged drought and the global recession. Utilities are focusing on geothermal power, which is generated from heat stored underground, after the dry weather cut hydro production by about half and the cost of diesel-fired generation pushed up power prices.

The projects, about 140 megawatts each, are located in Olkaria, 120 kilometers (75 miles) north west of Nairobi. Design of the geothermal plants is already underway and project managers would be appointed by the end of 2010, Eddy Njoroge, the company’s managing director, said March 31.”

Source: BusinessWeek