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The Nairobian

KenGen seeks funding for 1,500MW project

Business

By Antony Gitonga | Dec 02, 2024

Visiting German Vice Chancellor Dr Robert Habeck (C) joins senior government officers and a high powered delegation of investors in a tour of the geothermal rich area of Olkaria, Naivasha on 2nd December 2024. He said that Germany would support the country in its expertise in production of geothermal and solar energy. [Antony Gitonga, Standard]

KenGen has embarked on raising $4.2 billion (Sh546 billion) as part of its 10-year plan to pump an extra 1,500 megawatts (MW) into the national grid.

Already, the power generating company has received a commitment from various financiers for a 300MW geothermal project as part of the multi-billion exercise.

This came as the German government promised to support the country in expertise in tapping more geothermal and solar energy in the country. This emerged when visiting German Vice Chancellor Dr Robert Habeck led a high-powered delegation of investors on a tour of the geothermal-rich area of Olkaria, Naivasha.

Addressing the press, Haback lauded the country over its commitment to the production of green energy amid the crisis caused by climate change

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He challenged the government to invest more in solar and geothermal energy as part of meeting the rising demand for electricity. “Germany is committed to supporting Kenya in expertise in the production of green energy as it has very high potential in geothermal and solar,” he said.

Haback noted that Africa was one of the continents adversely affected by climate change affecting hydro-power production.

“Some members of the delegation are involved in the energy sector and are keen to learn how we can phase our thermal plants that continue to emit emissions,” he said.

KenGen chief executive Peter Njenga said the firm is committed to increasing electricity production by 1,500mw in ten years. He said of the amount, 800MW would come from geothermal, adding that several financiers had committed to supporting production of 300MW.

“We require $4 billion for the ten-year vision and we are currently engaging some financiers including the German government on this project,” he said.

He stated that plans were at an advanced stage for the construction of a 4.2mw solar plant at the Seven Forks hydro-dams in Lower Tana.

Njenga noted that demand for electricity in the country was on the rise hence the need to increase production as more investors sought opportunities in the country.

“The country’s geothermal potential stands at over 10,000mw and we shall continue to tap into this as electricity demand continues to rise,” he said.

Information and Digital Economy Cabinet Secretary Margaret Nyambura said that currently, 93 per cent of the energy produced in the country is from green sources such as geothermal and hydro. “The government is committed to reducing carbon footprints by investing in green energy while at the same time enhancing connectivity across the whole country,” she said.