KenGen to kickstart development of 140 MW Olkaria V project this year
The construction of the 140mw Olkaria V geothermal project is expected to kick off by the end of year and the procurement process is in operation.
Local news from Kenya detail that the construction of the 140mw Olkaria V geothermal project is expected to kick off by the end of year and the procurement process is on, KenGen announced yesterday.
The power producer expects to inject an extra 300 to 450 megawatts of power to the national grid in the next three years as the country starts to enjoy more stabilised fuel costs charges and green energy. Kengen managing director Albert Mugo said the 65 per cent reduction in FCC in the past six months – from August’s Sh7.22 to last month’s Sh2.51 per kilowatt hour – is a pointer to better days ahead.
The Olkaria I additional units to be commissioned by President Uhuru Kenyatta on Thursday has since December contributed to the displacement of thermal fuel, with geothermal fuel contributing 48 per cent of the total energy generated last month alone.
This according to Mugo has saved the country approximately Sh2.2 billion every month in terms of reduced fuel powered electricity generation and over Sh25 billion a year. The savings are expected to be directed at, among other things, the rehabilitation of the over 30-year old Olkaria I, which has mechanically run down, producing only 44mw against a capacity of 51mw.
This Thursday commissioning, to be graced by Rwanda’s president Paul Kagame, is the last phase of the 280mw Olkaria geothermal power that has cost a total Sh91.55 billion and comprises the 140mw Olkaria IV and Olkaria I units 4 and 5, each with a capacity of 70mw.
Last month, hydropower contributed 41 per cent while geothermal power contribute 48 per cent of the total electricity production. This is a big shift compared to the same period last year when geothermal contributed only 19 per cent.
Source: The Star