Kenya’s power generator, KenGen, signed an agreement with Power Africa-Kenya to add 2,500 MWs to the grid from geothermal sources by 2025. Under the agreement, the US President Barack Obama-led initiative, Power Africa, will provide KenGen with project development team and experts in geothermal and solar power to help realize the goal of boosting green energy.
The project will focus on exploiting Kenya’s huge geothermal potential in the Rift Valley according to KenGen Managing Director Albert Mugo. Speaking at the signing of the agreement, Mugo said “Despite the fact that geothermal power is cheap, renewable and environment friendly, only 6.5 per cent has been utilized in Kenya. Our partnership will help KenGen to leverage on its capacity to generate more clean energy and revenue.
Projects set to benefit from the partnership include the 140-MW Olkaria V, 70-MW Olkaria 1 Unit 6, refurbishment of 51-MW Olkaria I and phase I of the 100-MW Meru Wind Farm set for completion in 2018. The projects require about Sh900 billion ($9 billion). Mugo said the firm is considering various financing options such as public-private partnerships so as to meet the enormous cash requirement.