KenGen is now rehabilitating the country’s oldest geothermal power plant Olkaria I in Naivasha. This is in a bid to boost generation capacity as Kenya’s electricity demand reaches historic high. The Olkaria I Upgrade comes as efforts by the Government to lift the freeze on new Power Purchase Agreement (PPA) imposed by the National Assembly continues to take route.
The Olkaria I was commissioned in 1984 by the the Late President Daniel Arap Moi. It is Kenya’s first geothermal power station and has been the heart of Kenya’s renewable journey. The ongoing upgrade works by KenGen will raise its output from 45MW to 63.3MW with the additional power expected on the grid by September 2026.
Olkaria I Upgrade Project Factsheet
Location: The Olkaria geothermal field in Nakuru County, within Hell’s Gate National Park.
Developer and operator: Kenya Electricity Generating Company (KenGen).
Objective: To increase the power plant’s generation capacity, enhance grid stability, reduce dependence on fossil fuels, and support Kenya’s Vision 2030 goal of achieving 100% clean energy by 2030.
Expected outcome: The rehabilitation is expected to increase the combined capacity of these three units from 45 MW to 63 MW.
Current Status
“We have gotten commitment from the contractor and the consultant that this project which is about 76% complete and expected to cost Ksh15.6 billion will be able to meet the set timelines. This is because we need the power urgently,” stated Principle Secretary of Energy Alex Wachira during a site visit.
Also read: KenGen Cancels and Reopens Tender for $247.5 Olkaria VII Geothermal Plant Consultancy Work
Kenya Hits Record High Electricity Demand
Earlier this month, the country’s electricity demand hit a new record of 2,363MW driven by industrial expansion and rural electrification. KenGen which supplies more than 60% of the country’s electricity has met the surge by ramping up geothermal and hydropower output.
The government stated that it is pushing ahead with increasing electrical output despite a moratorium imposed by parliament in April 2023 on the signing of new PPAs. The freeze was introduced to review high electricity costs and the structure of PPAs.
The Bigger Plan
According to KenGen’s CEO Peter Njenga, the rehabilitation of Olkaria I is part of a broader push to modernize aging plants, expand geothermal fields, and invest in green power. This is to ensure that the national grid can handle future spikes in consumption without loadshedding.
Also read: KenGen Issues Multi Billion Olkaria I Rehabilitation Contract
“We made projects on the delivery of key projects such as the 63MW Olkaria I Geothermal Power Plant Rehabilitation Project. Other projects also include the 42.5MW Seven Forks Solar Project and the 8.6MW Gogo Hydropower Station Development.
Also read: KenGen Set to Add 42.5MW Seven Forks Solar Power Plant on Kenya’s Seven Forks Dams
