Power Africa initiative partners with KenGen on geothermal development in Kenya
Kenya Electricity Generating Company (KenGen) is partnering with the U.S. Power Africa initiative on technical and financial assistance for geothermal development in Kenya.
Following meetings in Washington DC, at the recently held GEA Geothermal Showcase event, news now report that Kenya Electricity Generating Company (KenGen) has partnered with Power Africa-Kenya to increase electricity production from geothermal sources.
Through the partnership, the US government-led initiative is expected to provide technical expertise to KenGen in the areas of development, management and financial structuring to attract private investments into geothermal projects.
The partnership comes at a time when KenGen is planning to develop 140 megawatts of geothermal electricity at Olkaria VI through a joint venture arrangement, different from its traditional way of funding projects through development financial institutions.
“Through this partnership, we hope to increase available generation capacity, develop new project structures and optimal frameworks to support efficient financing and project development,” said KenGen managing director Albert Mugo.
KenGen has an ambitious target of increasing its geothermal power generation capacity to 2,500 MW over the next 10 years, including the development of 720 MWto go online by 2020. With a total power generation capacity of 1,600 MW, KenGen has about 514 MW of geothermal power generation capacity.
Kenya is among six African countries that are to benefit from the multibillion-dollar Power Africa initiative launched by US President Barack Obama in 2013. Power Africa targets to double electricity access in sub-Saharan Africa, where it is estimated that more than 600 million people live in darkness.
Source: Business Daily Africa