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Tag: Geothermal

  • KenGen full year net profit rises to Ksh 10.5B

    KenGen full year net profit rises to Ksh 10.5B

    The Kenya Electricity Generating Company (KenGen) full year profit after tax to June this year has risen by 54pc to reach Ksh 10.5 billion compared Ksh.6.8 billion.

    According to the power generator, earnings were lifted by stronger operational efficiency, cost optimization, and increased generation from its diversified energy portfolio.

    During the year, KenGen reported a 42pc growth in profit before tax which grew to Ksh 15.5pc.

    “KenGen’s performance this year reflects the strength of our strategy, our people, and our commitment to sustainable energy. As we build on this momentum, we remain dedicated to powering Kenya’s future with clean, reliable, and affordable electricity,” said Peter Njenga, KenGen Chief Executive Officer.

    The firm says revenue from non-traditional sources grew by 235pc, reflecting the company’s expanding diversification and consultancy business, including the successful completion of geothermal work in Eswatini.

    Revenue for the year remained stable at Ksh 56.1 billion, compared to the previous year’s Ksh.56.3 billion as operating expenses declined by 11pc to Ksh 35.14 billion on account of lower depreciation charges and reduced overheads resulting from ongoing efficiency initiatives.

    Net foreign exchange and fair value gains amounted to Ksh 1.45 billion, compared to a loss of Ksh 722 million in the previous year, reflecting the stabilization of the Kenya Shilling.

    During the year, continued loan repayments and a reduced debt balance resulted into finance costs dropping by 20pc to Ksh.2.25 billion.

    Total assets rose to Ksh 505.6 billion, from Ksh 491.3 billion reported last year, while shareholder equity climbed to Ksh.284.5 billion. The company ended the year with cash and cash equivalents of Ksh 30.1 billion, up from Ksh 25.6 billion in 2024.

    KenGen’s installed capacity of 1,786 MW including geothermal, hydro, wind, and thermal generation, produced 8,482GWh of electricity, up 1% from 2024.

    Going forward, KenGen targets to accelerate its renewable energy development and diversify revenue streams.

    Looking ahead, the company said it remains focused on delivering its G2G 2034 Strategy, which aims to accelerate renewable energy development and diversify revenue streams.

    “As we move forward, KenGen’s leadership in renewable energy and our ongoing commitment to innovation and sustainability will remain at the core of everything we do. We are not just providing energy; we are helping to shape a greener, more sustainable future for Kenya and the region,” added Njenga.

    Its current project pipeline of 253MW includes the 63MW Olkaria I project, the 42.5MW Seven Forks Solar Project, and the 8.6MW Gogo Hydro Power Plant upgrade. KenGen is also advancing its regional expansion, with the upcoming geothermal drilling project in Ngozi, Tanzania, marking a significant milestone in its cross-border ambitions.

  • Kenya’s electricity consumption hits new high of 2,362.28MW

    Kenya’s electricity consumption hits new high of 2,362.28MW

    Kenya electricity consumption has hit a new peak demand of 2,362.28MW on Wednesday driven by higher consumption by industries, domestic users and increased urbanisation.

    Kenya Electricity Generating Company (KenGen) says geothermal and hydropower delivered the lion’s share of energy to the system, contributing significantly to stabilising supply and preventing outages.

    Data by the Energy and Petroleum Regulatory Authority (EPRA) show that KenGen generated 13,678.35MWh of geothermal power equivalent to 31.85pc of power supplied to the grid while hydropower stations delivered 10,915.93MWh, or 25.42pc.

    “We are committed to supplying steady and reliable baseload power to light our homes and drive Kenya’s industrialisation. This is why in our 10-year G2G strategy, we are working to deliver 1,500MW of electricity all from renewable sources including geothermal, hydro, wind and solar,” said ” said Peter Njenga, KenGen chief executive officer.

    According to KenGen, the two renewable sources of power accounted for 57pc of Kenya’s daily electricity generation highlighting its quest to deliver clean, reliable, and affordable power.

    “While the total energy demand for the day stood at 42,943.11MWh, including thermal sources, wind, and interconnectors with Uganda and Ethiopia supplemented generation, we are glad to note that it was KenGen’s steady delivery from indigenous resources that ensured grid stability,” added Njenga.

    Of the electricity delivered through hydro sources, Kiambere produced 2,908 MWh which 23.31pc above dispatch projections. Other major hydros like Gitaru, Kamburu, and Masinga also supported system operations despite flow variability in the cascading river system, KenGen said.

    KenGen says during the period, transmission lines such as Muhoroni-Chemosit and KisumuMuhoroni exceeded 120% capacity, highlighting the need for urgent infrastructure reinforcement to keep pace with surging demand.

  • Kenya set for additional green power at Silali geothermal field

    Kenya set for additional green power at Silali geothermal field

    Kenya is set to gain an additional 1,065 megawatts of clean, reliable power over the next decade following a breakthrough by the Geothermal Development Company in Baringo’s Silali region.

    GDC Managing Director Paul Ngugi says the latest high-capacity steam well is discharging 22MW, which is a rare yield equivalent to the output of four conventional wells.

    The Silali field is part of the expansive Baringo-Silali-Paka geothermal block, a region rich in underground steam reserves.

    GDC has been drilling the area for the past seven years alongside the Paka and Korosi fields to unlock Kenya’s untapped geothermal potential.

    The latest strike brings new momentum to GDC’s efforts, with the company now targeting 300MW from the Baringo-Silali-Paka project alone, distributing 100MW each from the three fields.

    So far, 75MW of steam has been harnessed from the region, with plans to scale this to 100MW by the end of the year.

    To speed up power delivery, the company is also deploying wellhead generation technology modular power units to allow faster electricity generation.

  • KenGen full year net profit up 35pc to Ksh 6.8B

    KenGen full year net profit up 35pc to Ksh 6.8B

    Higher electricity sales from geothermal and hydroelectric power plants helped Kenya Electricity Generating Company (KenGen) realize a 35pc growth in profit after tax to Ksh 6.8 billion from Ksh 5.02 billion in a year to June, 30 2024.

    In the period under review, the electricity generator realized a revenue growth of 4,3pc to Ksh 56.3 billion compared to Ksh 53.96 billion reported over the same period last year.

    “This impressive growth not only strengthens our financial position but also signals greater returns for shareholders now and long into the future, while enhancing our ability to invest in critical renewable energy projects providing more affordable, reliable electricity for our consumers,” said Peter Njenga, KenGen Managing Director.

    KenGen says during the year, electricity dispatch grew by 4.4pc to 8,384GWh from 8,027GWh recorded last year despite the decommissioning of over 130MW of fossil fuel- powered plants in Kipevu and Muhoroni in the year.

    “The shift to green energy is part of our broader push to meet the rising energy demand while reducing our carbon footprint, aligning with the Government of Kenya’s ambitious renewable energy goals of transitioning to 100% green energy by the year 2030,” added Njenga.

    KenGen says its geothermal and hydroelectric facilities, were critical to meeting the country’s peak electricity demand of 2,149MW during the period under review.

    Through its 10 year strategy, the power generator plans to boost its renewable energy capacity by additional 1500MW.

    “We have several major renewable energy projects in our pipeline, the 42.5MW Seven Forks solar plant, rehabilitation of Olkaria I geothermal power plant to give us 63MW and redevelopment of Gogo hydropower station targeting a total of 8.6MW,” stated Njenga.

  • Govt eyes private sector investment to boost clean power generation

    Govt eyes private sector investment to boost clean power generation

    President William Ruto says the government is exploring Public Private Partnerships to develop at least 9000 megawatts of geothermal power that remains untapped.

    Speaking at the groundbreaking of the Ksh 12 billion 35MW geothermal power project by Orpower 22 in Menengai, Nakuru County, President Ruto says by leveraging private sector capital and efficiency, Kenya will accelerate its power generation and achieve its 100pc transition to clean power by 2030.

    “Many people would have expected us as government to borrow money and come and invest in this facility. That is not the right way to go about this because we do not want to burden the people of Kenya with additional taxes or additional laws when the private sector can do it much more efficiently,” said President Ruto.

    Out of the 10,000MW geothermal power potential, Kenya has an installed capacity of 950MW making the country the world’s 6th largest geothermal power producer. Geothermal energy also accounts for more than half of the national power mix.

    This comes as President Ruto backed the recent deal between Kenya Electricity Transmission Company (KETRCO) and Adani Energy Solutions for the construction of a power transmission lines and substations at a cost of Ksh 95 billion for a period of 30 year.

    “We will pay for that transmission line using wheeling charge that has been negotiated and it is important for us as a nation to appreciate that the partnership between public and private sector gives us a win-win outcome where we can deliver public services and pubic goods using the efficiency and investment of the private sector as a way of supporting overall development in our country,” he added.

    The Geothermal Development Corporation (GDC) has been directed to intensify innovative exploration, such as the use of geothermal heat for industrial processes and greenhouse farming.

    The new power plant by Orpower 22 is expected to enhance power supply in Nakuru County, support industrialization and sustain job creation.

    Upon completion, the power plant is projected to generate affordable power at Ksh 8 per kWh, significantly lower than the cost of fossil fuel alternatives.

    “This particular power plant by Orpower 22 is going to not only add additional power to the national grid, but is going to go a long where in creating an opportunity for investors to come into our country. Investors inherently follow energy, and not just energy but affordable energy and reliable energy,” stated Opiyo Wandayi, Energy Cabinet Secretary.

    To further support power access in the region, the government has allocated Ksh 2 billion for the development of last mile power transmission lines which is expected to provide power to 15,000 people.

    This comes as the government embarks on negotiations with the Afrexim Bank to secure funding for the development of infrastructure at the 5000 acres Naivasha Industrial Park.

  • EPRA boss elected chair of energy transition accelerator 

    EPRA boss elected chair of energy transition accelerator 

    The Energy and Petroleum Regulatory Authority (EPRA) director general Daniel Kiptoo has been elected chairman of the Steering Committee of the Regulatory Energy Transition Accelerator (RETA) for a period of two years.

    This comes as EPRA secured a nomination to sit on a 13-member Steering Committee of the clean energy transition accelerator for the 2024-2026 term.

    According to Kiptoo, the energy regulator targets to leverage the position to enhance its knowledge on global best practices on clean energy capabilities from geothermal energy exploration, battery energy storage systems, wind energy to promoting nationwide adoption of electrical mobility.

    “EPRA is committed to steering the adoption of renewable energy from generation to end-use in Kenya. We have been fostering information exchange and establishing a sound regulatory framework to pave the way for clean energy adoption,” said Kiptoo.

    EPRA says Kenya has made advancement towards green energy transition that has seen the country’s renewable energy installed capacity rise to 84.9pc of total energy supplied to national grid.

    Geothermal energy is Kenya’s leading source of clean power contributing 44.6pc of the total energy generation while hydro and wind generation follows with 22.5pc and 14.3pc respectively.

    “Through RETA, we can collectively share knowledge and resources to expedite clean energy transition for a sustainable future for all,” he added.

    Additionally, utility-scale solar generation contributed 3.5pc to the country’s overall energy needs. The government aims to achieve a 100pc clean energy transition by 2030.

    RETA targets to promote flexible renewable-based systems, regulatory frameworks to deliver the energy transition, network planning for wide scale electrification, regional interconnection and fair and inclusive energy transition.

  • Costly fuel cuts installed electricity capacity by 2pc

    Costly fuel cuts installed electricity capacity by 2pc

    Kenya’s total installed electricity capacity declined by 2.3pc between 2022 and 2023 as the country cut its power generation from thermal sources owing to increase in fuel prices.

    Data from the Kenyan National Bureau of Statistics (KNBS) indicate that the country generated 3,243.6 megawatts (MW) of power last year when compared to 3,321.3 MW the country generated in 2022.

    During the period under review, installed capacity from thermal oil electricity decreased by 10pc from 681.8MW in 2022 to 613.8MW last year as prices of diesel shot from an annual average of Ksh 139.69 per litre to Ksh 180.33 over the same period.

    “Geothermal electricity installed capacity recorded a 1.1pc decrease to 940MW in 2023, while solar capacity remained unchanged at 212.5MW. Hydroelectric power capacity increased slightly by 0.4MW to 839.3MW in 2023,” said KNBS in its 2024 Economic Survey.

    However, total electricity generation rose by 3.4pc to 13,423.6 giga watt hours (GWh) from 12,985.4GWh in the review period.

    Proportion of Domestic Electricity Generation by Source, 2023. SOURCE | KNBS

    Thermal generation decreased by 17.6pc in to 1,305.7GWh in 2023 when compared to 1584.9GWh as KenGen and Independent Power Producers cut their generation capacities to 353.3GWh and 952.2GWh respectively.

    Wind electricity generation decreased by 134.9GWh to 2,008.1GWh in 2023. The amount of geothermal electricity generated increased by 9.3pc to 6,032.1 GWh in 2023. However, hydroelectric power generation declined by 12.3pc to 2,666.7GWh in 2023. Solar generation rose from 383.7GWh in 2022 to 491.5GWh in 2023.

    Imports of electricity increased from 316GWh in 2022 to 919.3GWh in 2023.

    “Imports of electricity almost tripled to 919.3 GWh on account of full operationalization of Ethiopia High Voltage Direct Current (HVDC) Power plant,” KNBS stated.

    KNBS says last year, total electricity demand increased from 12,985.4GWh in 2022 to 13,423.6 GWh in 2023 supported by domestic demand for electricity which increased by 3.1pc to 10,320.6GWh in 2023.

    Export sales also increased by 58.6pc to 33.8GWh in 2023. Transmission and distributive losses amounted to 3,069.2GWh, accounting for 22.9pc of total demand in 2023.

  • GDC eyes additional revenue from Menengai steam fields

    GDC eyes additional revenue from Menengai steam fields

    The Geothermal Development Company (GDC) is looking to diversify its revenue streams through the sale of steam to industries that rely on power to fuel their heating processes.

    GDC Managing Director Paul Ngugi has affirmed that by funneling steam from its fields on the Menengai Crater floor, the state agency can cut client production costs while improving the country’s green credentials.

    The firm has challenged enterprises to leverage on geothermal steam to cut on the cost of electricity used in production.

    “Tariffs from geothermal are as low Ksh 5 per Kilowatt, we are cushioning the consumer against high bills. Geothermal generation accounts for 48pc of power that goes to the national grid. GDC currently yields 35 Megawatts while Kenya Electricity Generating Company (KenGen) owned Olkaria wells in Naivasha pump at least 320 Megawatts to the national grid,” said Ngugi.

    This comes as GDC signed a 25-year deal with cement manufacturer Karsan Ramji and Sons Limited for the offtake of 40 tons per hour of geothermal steam to be used in power generation and brine which will be used in the drying process.

    “Clean smart activities and renewable energy shifts are potential solutions to extreme climate conditions. To address climate change requires a fundamental cultural shift among local communities,” said Kishor Varsani, Karsan Ramji Sons Limited Chief Executive Officer.

    Geothermal energy is versatile and prolific and apart from its uses in the generation of electricity, geothermal can also be used in heating greenhouses, milk pasteurization, laundry, leisure and recreation, among many other uses.

    GDC estimates that Kenya could save up to $1 trillion by using green energy sources instead of diesel in the generation of power.