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Thursday 24 May 2012

KenGen

 

The Kenya Electricity Generating Company Limited (KenGen) is the leading electric power producer in Kenya, generating about 80 per cent of electricity consumed in the country.

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Kenya Electricity Generating Company Limited, Kenya

KenGen Fires Up Kenya Economic Development

The company generates electricity from hydro, geothermal, thermal and wind sources. Hydro leads the way, with an installed capacity of 677.3MW, which is 72.3 per cent of the company’s installed capacity. KenGen is in direct competition with four Independent Power Producers (IPPs) who, between them, produce about 18 per cent of the country’s electric power. The company has a workforce of 1,500 staff in different parts of the country.

 

With its wealth of experience, an established corporate base and a clear vision, the company intends to maintain leadership in the liberalised electric energy sub-sector in Kenya and the Eastern Africa Region. KenGen Headquarters are located at Stima Plaza Phase III, Kolobot Road, Parklands in Nairobi.

Economic Development

Hydro-power constitutes around 60 per cent of the total electricity generated in Kenya. The bulk of this electricity is tapped from five generating plants along River Tana also known as the Seven Forks. The five stations - Kindaruma, Kamburu, Gitaru, Masinga and Kiambere – combined have an installed capacity of more than 400 MW.

 

Sondu Miriu Power Station in Nyanza produces 60 megawatts, while Turkwel Gorge Power Station in north-western Kenya has an installed capacity of 106 MW. There are also several small hydro stations -Mesco, Ndula, Wanjii, Tana, Gogo Falls and Selby Falls - all built before independence in 1963 - with a combined generation output of 40 MW.

 

Power producer

Geothermal energy is generated using natural steam tapped from volcanic-active zones in the Rift Valley. Some 127 MW is fed into the national grid from three geothermal plants located at Olkaria. Thermal (fuel) energy is generated in power stations at Mombasa and Nairobi and other small off-grid stations in Garissa and Lamu. KenGen’s installed capacity is projected to increase by 1342 MW between 2004 and 2018/2019 and will comprise geothermal (503 MW), hydro (220.6 MW) and thermal (568.7 MW).

 
National consumption of electricity has risen from 4.9 billion kilowatt hours in 2003/2004 to 5.1 billion in 2004/2005, and 6.9 billion kilowatt hours in 2009/2010 and should rise to 11.8 billion in 20/9/20.

 

 

Background

Kenya is highly dependent on hydroelectricity. Hydroelectricity plants provide more than 70 per cent of all output. The main hydro stations are : Kindaruma (44 MW), Gitaru (225 MW), Kamburu (94.2 MW), Masinga (40 MW) and Kiambere (144 MW). The Turkwel Gorge Hydroelectric Station in Turkana District has a capacity of 106 MW while Sondu Miriu in Nyanza produces 60 MW.

 

In the recent past, hydro-power generation has been affected by recurrent droughts owing to climate change. This has therefore necessitated in the diversification of power generation modes, with a focus on clean, renewable energy, especially geothermal and wind.

 

KenGen is planning a 280MW geothermal project, with a total cost of $1.3 billion. It is expected that the company will have improved its capacity by about 400MW in the next four years. This represents a major strength in that KenGen will have improved its capacity to generate power from about 1,000MW to 1,500MW.

 

In addition, it recently commissioned 5.2 megawatts of wind-generated electric power and is planning to increase its wind capacity to 25MW by the end of 2012 in Ngong near Nairobi.

 

The improvement in electricity generation capacity is a direct result of the restructuring and internal transformation that KenGen has undergone in the recent past. |Thecompany’s capacity to bring in additional finance is also a major strength.

Independent Power Producers

KenGen is also planning a 600-MW coal plant for which a joint venture partner has been identified. It is expected that the project will be ready for commissioning by 2015. KenGen has adopted a geothermal strategy which will see it develop approximately 280WW of energy from 2013. Going forward, it is envisaged that up to 140 MW will be installed from geothermal resources every year for the next 8 years from 2014.

 

KenGen came into being in 1997 when the management of Kenya Power Company was formally separated from that of the KPLC, with the former charged with the task of generating power while the latter assumed the task of its distribution. KPC was thereafter renamed KenGen, which is now 70 per cent government owned while the rest is owned by the public through the Nairobi Stock Exchange.

 

KenGen is poised to play a leading role as Kenya angles towards attaining a middle income economy as envisaged in Vision 2030 and also in the journey towards the attainment of the Millennium Development Goals (MDGs).