KenGen awards multibillion contract for mordernisation of Olkaria I Power Plant

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KenGen awards multibillion contract for mordernisation of Olkaria I Power Plant

Kenya’s oldest geothermal plant, Olkaria, is set for a revamp.

To this end, the Kenya Electricity Generating Company (KenGen) has awarded two companies a multibillion contract for the rehabilitation of the plant, to increase its output from the current 45MW to 63MW.

In the tender, Chinese firm SEPCOIII Electric Power Construction Co. Ltd will be the Engineering, Procurement, and Construction contractors (EPC) whereas Japanese firm Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) will supply steam turbines and generators.

According to the country’s top power generator, the move to mordernise the geothermal power plant will accelerate the country’s transition to green energy. 

KenGen’s Managing Director and CEO, Eng. Peter Njenga expressed his enthusiasm for the project, stating, “The renovation of Olkaria I represents a historic milestone for KenGen as we continue our commitment to sustainable energy solutions. By leveraging the latest advancements in geothermal technology, we aim to not only enhance the performance of the plant but also set new standards for renewable energy production in Kenya.”

KenGen says the strategic initiative is poised to elevate the power plant’s operational efficiency and increase electricity generation output by up to 40% compared to existing conventional models whose first unit was commissioned in 1981 and has since been decommissioned.

The modernisation project, scheduled for completion by December 2026, according to KenGen, is designed to align with Kenya’s broader energy objectives and the Vision 2030 initiative, which envisions a transition to 100% green energy by the end of the decade.

“As the oldest geothermal power plant in Africa, Olkaria I holds significant historical importance and stands as a testament to Kenya’s pioneering efforts in renewable energy production and therefore the excitement for us to have this power plant back on the grid,” added Eng. Njenga.

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