On 20 November 2018, KenGen said it would manage the 54.6 megawatts Garissa solar power plant after the Rural Electrification Authority approached the utility to handle operations and maintenance.
The project, built by REA at a cost of Sh13.5 billion, was set for commissioning later that day. It had been expected to finish in September, but the schedule slipped after delays tied to construction of the power line needed to evacuate electricity from the plant.
REA had run into difficulties acquiring land for the transmission line, but later reached an agreement with the community so construction could continue while land talks went on.
KenGen said it was discussing the terms of the arrangement with REA. In a statement, Rebecca Miano said: “REA has approached KenGen to run the 50MW solar plant in Garissa and negotiations are ongoing to establish the terms of the operations and maintenance contract,”
The Garissa facility was described as Kenya’s first commercial-scale solar power plant and the largest in the region. Its output was to be sold to Kenya Power at Sh5 per kilowatt hour, a tariff close to the cheapest source of electricity, hydro.
The plant’s pricing came after an earlier power purchase agreement between REA and Kenya Power had set the tariff at Sh10 per unit. The Energy Regulatory Commission rejected that arrangement because the project was being developed by a State-owned entity using a concessional loan.
KenGen said the role at Garissa aligned with its wider strategy of working with other power producers. Miano also said: “The company continues to explore with geothermal concessional licence holders of new fields,”
The utility said it planned to add 721MW of capacity by 2025 through geothermal, solar, wind and hydro projects. Among the projects mentioned was the 165MW Olkaria V, which was expected to be commissioned by mid next year.
