KenGen Issues Multi Billion Olkaria I Rehabilitation Contract

Home » News » KenGen Issues Multi Billion Olkaria I Rehabilitation Contract

The Kenya Electricity Generating Company PLC (KenGen) has just recently awarded a couple of companies a multi-billion Olkaria I Rehabilitation contract for the rehabilitation of Kenya’s oldest geothermal power plant (The Olkaria I).

The planned rehabilitation of the Olkaria I geothermal power plant is mainly aimed at increasing the general output from 45MW up to 63MW to speed up the transition of the country to green energy, this was revealed by KenGen in a statement they issued.

Companies Awarded the Olkaria I Rehabilitation Contract

In the Tender that was issued by KenGen, SEPCOIII Electric Power Construction Company Limited has been tasked to execute the Engineering, Procurement, and Construction (EPC) whereas Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) has been tasked to supply the steam turbines and generators for the three units of Olkaria I geothermal power plant.

This key initiative, according to KenGen, is set to elevate the operational efficiency of the power plant and increase the overall electricity generation output capacity by up to 40% as compared to the existing conventional models whose very first unit was commissioned in the year 1981 and unfortunately has been decommissioned.

“This Olkaria I Rehabilitation is indeed a historic milestone for KenGen as a company, as we go on with our commitment to attaining sustainable energy solutions,” said the Managing Director and Chief Executive Officer of KenGen, Peter Njenga. Additionally, Njenga indicated that by leveraging the latest upgrades in geothermal technology, the have an aim of enhancing the overall performance of the plant and set higher standards for the renewable energy production sector in the country.

Completion Date of the Rehabilitation Project

This Olkaria I geothermal plant modernization project, is expected to be fully completed by December of the year 2026. Moreover, this project has been designed to align with the broader energy objectives of Kenya and the country’s vision 2030 initiative which entails full transition to green energy by the end of the decade.

“Being the oldest geothermal power plant in the African continent, the Olkaria I geothermal power plant holds very significant historical importance and is a testament to the pioneering efforts in the renewable energy production sector and therefore the pleasure on our side to have this old geothermal power plant back on the grid,” the CEO added.

Olkaria I Shut Down

The Olkaria I geothermal was shut down in the month of May 2023. Its redevelopment plans were brought to light at the end of the year 2022.  The CEO also showed confidence in the rehabilitation project by citing the availability of resources and the presence of highly skilled expertise in the company.

“Having being operational for more than a period of 40 years, it confirms the sustainability of geothermal energy with skills set and the human resource capacity that KenGen has been able to come up with over the years, we are very confident that the Olkaria I Geothermal Rehabilitation project will be completed as scheduled and within the set budget,” Peter Njenga commented.

With this comprehensive rehabilitation Olkaria I Rehabilitation project, KenGen aims to extend the operational lifespan of the Olkaria I geothermal power plant and establish a model for the sustainable energy development that can be put in practice in the region as Kenya moves forward to exploiting the 10GW of geothermal capacity potential found in the Rift Valley region of the country.

In prioritizing innovation efficiency, and also environmental responsibility, KenGen is spearheading a greener and more sustainable future for the energy landscape of Kenya.

Also read: Kenya Inks Over $4 Billion Deals to Boost the Kenya Geothermal Sector Infrastructure

$117 Million Deal Closed for Globeleq Menengai Geothermal Plant in Kenya

Olkaria I Geothermal Power Plant Unit 6 Construction in Kenya Complete