Kenya Calling for Consultancies for W2E Project

Kenya called on investors to submit bids for a garbage-powered plant beginning the first week in December (Kenya Opens Bids for Waste-to-Energy Plant), and is now expediting the process by announcing its search for consultancies to carry out studies for electricity generation from flower farms’ waste and biogas from sewage systems.

Energy Permanent Secretary, Patrick Nyoike said consultancies interested in studies for power generation from flower farms’ waste and biogas need to tender for the projects with documents received by February 19. “Request for proposal documents may be obtained during working hours upon payment of a non-refundable fee of Sh3,000 in cash or banker’s check payable to the Ministry of Energy,” he said.

Kenya has been making large strides to diversify its energy mix. The country uses geothermal and hydro in order to generate power, but droughts leave a level of uncertainty. The East African country was forced to shut its Masinga Dam in July as a result of steadily depleting water levels (Drought Forces Kenya to Shut Hydropower Dam). And while the government is eyeing geothermal energy as a potential solution to the hydro problem, it will take more to help Kenya reach peak energy demand which is 1,050 MW.

The East African country is attempting to almost triple its electricity-generating capacity to 3,200 MW by 2012 using all forms of energy including nuclear power and renewable energy sources according to Prime Minister Raila Odinga (Kenya Investment: Doom or Gloom?). The country has been moving up the “green” ladder according to a report released by the United Nations Environment Program that states Kenya had 14 green energy and climate friendly projects emerging as part of the clean development mechanism of the Kyoto Protocol – increasing its 2004 total of only five projects (Kenya Moves Up Green Chart).

Meanwhile, Ethiopia and Kenya have decided to dip into their own pockets to cover the planned $3.5 million power interconnection project. The money will be used to hire a consulting engineer to prepare the bid document for the construction of the power interconnection infrastructure between the two countries which would also increase power generation as Ethiopia attempts to become the first African country to export renewable energy (Ethiopia and Kenya Reach into Own Pockets for Co-Power).

Kenya also announced the start of a Green Energy Fund slated to be available by the next fiscal year in order to shore up renewable energy investment within the country to increase power generation capacity by 2,000 MW by 2012 (Kenya to Launch Green Energy Fund). "The loan facility will provide concessional loans to companies and other institutes that want to invest in green energy," Geoffrey Mwau, economic secretary at the Ministry of Finance, told Reuters, adding the money would be disbursed through approved commercial banks. Funds will also be provided for training and research in the renewable energy sector.

In addition, Alternative Energy Africa announced on January 31 that Kenya Power & Lighting Co. signed a 20-year agreement to buy 300 MW of electricity from the Lake Turkana Wind Power Ltd. project which will house the largest wind farm in Africa (Kenya Power Signs a 20-Year Deal for Major Wind Project).

Kenya appears to be ideal for investors as more projects continue popping up; however, the completion rate of these projects should be taken into account and most of Kenya’s large scale projects aren’t due to be complete until 2012.

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