Following the appointment of Rebecca Miano (Left) as the Cabinet Secretary for the East African Community, Arid and Semi Arid Lands and Regional Development; KenGen board appointed Abraham Serem as the MD and CEO, in an acting capacity
The Kenya Electricity Generating Company (KenGen) is planning to revamp its ageing, first-generation geothermal plants.
The state power producer announced the plans in its earnings report.
The plan includes increasing the capacity of existing geothermal facilities in Olkaria by redeveloping 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. Delayed Tender The plans coming in hot in the heels of the new acting Chief Executive Officer Abraham Serem have delayed for nearly 2 years.
First announced in 2020, the tender for turbine uprating for Olkaria I Additional Units 4 and 5 and Olkaria IV, are aimed to increase the capacity of the two geothermal power stations from the current 280 MW to 320 MW.
KenGen reported a Sh4.7 billion 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.” KenGen Acting Managing Director Abraham Serem said.