KenGen by East Coast Promotions

COMPANY PROFILE

2015

KENGEN

+ 254 20 3666 000 | www.kengen.co.ke

The rise of geothermal generation Editorial: Rosie DeWinter

With weather variations having a negative impact on the reliability of hydro power, Kenya has been implementing and utilising a new energy source and it’s one that comes from the earth’s very core. With the new 280MW geothermal project coming on stream in December last year, KenGen, with new developments in the pipeline, plan to add at least 3,000MW to its power generation fleet by 2018. The adjective geothermal, originates from the Greek roots of ‘γη’ (ge), meaning earth, and ‘θερμος’ (thermos), meaning hot. Generated and stored in the earth, thermal energy is the energy which determines the temperature of matter. The geothermal gradient – which is the difference in temperature between the core of the planet and its surface – maintains

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a continuous conduction of thermal energy in the form of heat from the earth’s core all the way to the surface. A cost effective, sustainable, reliable and more environmentally friendly alternative, geothermal power has historically been a limited source, only viable when near to tectonic plate boundary areas. However, with thanks to

further technological advances, the range and size of these viable resources has increased, leading to much more potential for everyday applications and long-term, even in the neverending attempts to mitigate global warming if it is capable of replacing the unfavourable use of fossil fuels. The International Geothermal Association projects growth in

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this sustainable alternative to 18,500MW by 2015, due to the various projects already under consideration. From the period December to May this year, the Kenya Electricity Generating Company (KenGen) announced that geothermal remained the dominant source of electric energy, contributing an estimated 300kWh, in comparison to only 260kWh received from hydro sources in the country. Albert Mugo, Managing Director and CEO at KenGen, said: “Kenya is now relying heavily on geothermal with the entire capacity of the 280MW coming on stream from December last year. The impact

of geothermal is positive in stabilizing our revenues.” This huge potential in geothermal is due in thanks to the discovery of the Olkaria OW721 – one of the five biggest geothermal wells in the world – it will be connected to Olkaria IV. Much of KenGen’s success with the drilling of these wells can be attributed to its longstanding expertise in geothermal exploration, work-class expertise and improved and innovative technology. “The new well which is among the biggest in the world firmly positions Kenya as a major geothermal power producer globally and helps to realise the Government’s goal of 5000MW in the next thirty months,” Mugo

said in a statement. In a bid to boost Kenya’s aim to triple its power generation capacity to 5,000MW, the well discovery with a production capacity of 30MW, is located in the renowned geothermal rich Olkaria area, 200km north-west of Nairobi. 3,000m deep, the Olkaria OW-921 took 46 days to complete.

ENERGY GENERATING ROOTS KenGen, the Kenya Electricity Generating Company Ltd, has roots dating back to 1954 when the Kenya Power Company (KPC) was first commissioned to construct the transmission line between Nairobi and Tororo in Uganda and to begin developments of geothermal and

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other generating facilities in Kenya. Under a management contract, KPC was managed by the Kenya Power and Lighting Company (KPLC), but in January 1997, following a result of new reforms being undertaken within the energy sector, the management of KPC formally separated from KPLC. And in October 1998, KPC was relaunched under the corporate identity that it is recognised as today – the Kenya Electricity Generating Company – which subsequently took charge of all publicly owned power generating plants. Now the leading electrical power generation company operating in Kenya, KenGen produces 80% of electricity consumed in the country. Integrating various sources of energy generation, including geothermal, thermal and wind, hydro once took the position as the leading energy source but the potential of geothermal has proved to be a much more viable source in recent months. Hydro does not hold a particularly stable position in Kenya’s energy mix as it is very much dependent on the weather and due to low rainfall in recent months, this has led to a poor inflow of water to the generating dams – subsequently reducing dependence on this energy source. “The country has not experienced power rationing despite low water levels in the hydro generation dams on the Tana Cascade - this is because the 280MW project has helped to bridge the power deficit,” the company said.

OLKARIA GEOTHERMAL PROJECT With the commissioning of the 280MW project in Olkaria last year, geothermal now accounts for more than 50% of the electricity

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consumed by Kenyans. In an attempt to further boost its geothermal power production programme, KenGen has implemented mobile wellhead plants which are far quicker to deploy. With 14 wellheads now in the pipeline, these generation units are currently providing a total of 45MW of electricity. The Olkaria 280MW project comprises the 140MW Olkaria IV and the Olkaria I units 4 and 5 each with a capacity of 70MW. In December last year, KenGen connected the full 280MW of Olkaria geothermal power to the national grid, with the aim and continued hope of lowering the cost of electricity in Kenya. “We can now confirm that all the 280MW is running and stable on the grid. Indeed, we are very excited about this milestone. We not only see it as a score for KenGen, but also for Kenyans in general as it helps to further reduce the cost of power by displacing the expensive thermal fuel. At the same time, it will help to stabilise the country’s power supply by reducing dependence on hydro, which is prone to weather variations,” said Mugo. With this now connected, Mugo explains the focus is on adding further power to further support the Government’s plan to inject 5,000MW by 2018. “With the implementation of the 280MW Olkaria geothermal project now behind us, we are focused on the next phase which includes the implementation of 350MW comprising Olkaria I, Olkaria V and Olkaria VI projects.” With a total capacity of 350MW, it was announced in June that KenGen is continuing to drill wells to supply steam for an additional 70MW unit at the more recently

commissioned Olkaria I Unit 4 and 5 plant. Over the next few years, the company hopes to develop the 140MW Olkaria V and Olkaria VI plants respectively. “Olkaria V Power Plant is a 140MW project. Steam available for this plant is 166.4MW while the other 140MW Olkaria VI plant has 124.3MW of available steam,” explains KenGen’s Director for Geothermal Development, Eng. Abel Rotich. “Testing of other wells is in progress. We are also drilling more wells which shall cover our requirements going forward.” Exceeding the requirements and necessary steam levels for these three projects under its drilling program, it is hoped that this will help in guaranteeing the projects will be financed. It also means that the company has provided steam for future plants in the pipeline - once more highlighting KenGen’s world-class expertise and unmatched experience in geothermal exploration.

KENYA’S WIND POWER Standing as the only producer of wind energy in Kenya, KenGen operates the 25.5MW wind project based at Ngong, outside of Nairobi. Plans to implement this development site began in the early 1990s with just two commissioned wind turbines located at the site, donated by the Belgian Government. Although since retired, the information and data these two turbines provided over the course of 14 years helped to show KenGen that the location had potential to generate up to 14.9GWh of energy per annum. Works began in May 2008 with six Vestas V52-850kV wind turbines subsequently commissioned in the summer of 2009 - with the total

KENGEN installed capacity rising from 5.1MW to 25.5MW. Currently, just 1% of power generated in Kenya is generated from wind power but this figure is expected to rise to 11% - all with the aim to achieve the Government’s 2018 plan for energy generation. In July this year, it was announced that a new wind power farm is to be constructed and commissioned in Meru County, eastern Kenya. Financed by a number of investors, including the French Development Agency and the German Development Bank, Meru Country is an ideal location with a positive wind corridor. Signing the Memorandum of Understanding (MoU) in October last year with the County Government of Meru for the acquisition of land to develop the 400MW wind project, a feasibility

study was also undertaken a few years ago showing the adequate wind in Meru, enough to generate up to 400MW of power. KenGen expect the first phase to be completed by December 2017 - generating 100MW – it is estimated to cost $270 million (Sh26.5 billion). Once the project is completed, it has the potential to rank as the one of the biggest wind farm projects in Kenya. In a statement, Albert Mugo said: “We have developed internal capacity to implement the wind project, we see a lot of potential in wind power. It is likely to become a big thing in Kenya and we are part of a group of businesses taking leadership in wind power development in the country.” Wind energy is just another way in which KenGen is looking to diversify its business to generate

cheaper and more renewable sources of power production. In a bid to reduce costly dieselgenerated energy, KenGen has been exploring and utilising the use of wind, steam and hydro to great success. With plans to use up to $1.3 billion (Sh127 billion), predominantly in concessional funding, over the next few years on more sustainable and renewable energy projects in the country, such discoveries as the new well, Olkaria OW-921, will help in positioning Kenya as a major geothermal power producer globally. And with its plans to add at least 3,000MW to the National Grid by 2018, KenGen is certainly on track to help implement the proposed plans of the Kenyan Government to generate 5,000MW of geothermal power by 2018, helping to reduce the cost of power and enhancing Kenya’s energy stability

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You Demand, We Supply Kenya Koch Light Industries Limited is a Kenyan Company that partnered with international companies in supply of drilling rigs, equipment and services in the geothermal sector in Kenya.

• Rig & drilling services • Drilling Supplies • Engineering services • Civil contractors

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