Biggest power producer IN East Africa; Kenya Electricity Generating Co. plans joint ventures to complete its geothermal projects in Olkaria.
Since the Geothermal projects need high volumes of capital, the company is strategizing to look for JVs where KenGen will only put 30 percent of the equity while the remaining amount will be financed by JV partner. This will enable KenGen to go for all the projects company wish to get.
KenGen is 70 percent owned by the government, has installed 75 percent of the country’s capacity and has the ability to produce 1,252 MW. It plans to add a further 844 MW to the national grid by 2017. Meanwhile Kenya needs 5,530 MW of electricity By 2030, 26 percent of planned capacity, to be from geothermal sources.
280 MW of geothermal capacity will be operational by December 2014, KenGen is going to start process to receive proposals for its Olkaria 6 project, which will see a further addition of 140 MW.
First Olkaria project was initiated way back in June 1981, the first geothermal plant in Africa.