Kenya’s KenGen has begun delivering steam at the sixth unit of its Olkaria geothermal unit.
The Olkaria I additional unit 6 will add another 83 MW to KenGen’s geothermal capacity, reaching 796 MW. Geothermal accounts for 39% of the company’s installed generation. Adding this new unit will boost geothermal’s share of KenGen’s capacity to 42%.
Construction on the plant began in December 2018. KenGen expects to reach commercial operation in June 2022. KenGen had hoped to bring the plant online earlier. The first five units at Olkaria generate around 185 MW.
“The construction of Olkaria I Unit 6 is aligned to the company’s long-term strategy and Kenya’s Least Cost Power Development Plan (LCPDP),” said KenGen managing director and CEO Rebecca Miano. This is “focused on sustainable supply of renewable energy in support of the Government’s Big Four Agenda”.
KenGen noted that the geothermal power was both positive for the environment and for the economy. Geothermal power, it said, would displace other more expensive sources of energy.
The company has also sold carbon credits from the Olkaria facility. Displacing fossil fuel-based electricity has allowed it to claim carbon emission reductions (CERs).
Kenya intends to reach 100% renewable energy by 2030.
Big business
Fuji Electric Global manufactured the turbines, while Marubeni acted as project contractor. Installing the steam turbine began in June 2021. Funds for the turbine came from a Japan International Cooperation Agency (JICA) loan, with financing through the European Investment Bank (EIB).
KenGen said its installation of the turbine was the largest single unit at any of its geothermal facilities. It also marks the first installation of a Fuji turbine in Africa, let alone Kenya.
When KenGen began installation, it predicted that installation would take around three months.
KenGen generates 1,818 MW of power, of which 86% comes from green sources. Hydropower accounts for 826 MW and wind for 26 MW. KenGen has used its Olkaria experience to gain access to new markets, beginning geothermal work in Djibouti in 2021 and Ethiopia in 2019.
Electricity demand in Kenya is growing at an average of 4.5%. Demand hit a peak of 2,036 MW in November 2021.