KenGen commissions the entire 280MW geothermal project

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Monday, December 14, 2015 - 09:15

 

KenGen Enhances Hydro Generation Following Heavy El NIno Rains
 
Press Release

KenGen Enhances Hydro Generation Following Heavy El Nino Rains

December 1 30 2015… Kenya's main power producer, KenGen, has enhanced output from hydro with the current heavy rains filling up the country’s major generating dams at the Seven Forks in Eastern Kenya.
Energy planners say all the dams in the cascade have attained their spilling levels while the main Masinga Dam is still two metres to spilling at 1054.32 meters above sea level (masl). 
The water levels at Kiambere- which is the lowest dam in the cascade, stood at 700.23 masl and is spilling 46 cubic meters (or 46 million litres) per second. At Masinga, the highest dam level is attained when the water reaches full supply level of 1,056.5 masl, beyond which the dam spills. 

KenGen Managing Director and CEO , Eng. Albert Mugo said increased inflows to the Seven Forks will raise contribution from the hydro mode of generation and lead to an optimum mix, adding that KenGen’s other power generating units were operating normally.

“Hydro generation is the cheapest mode of generation and therefore any increase in its uptake by the off taker will displace an equivalent amount of other sources from the system. This can only result in the stability and predictability in the price of electricity to consumers,” said Eng. Mugo.

KenGen has in recent weeks, following the onset of El Nino rains optimised on hydro resource deliberately stepping up hydro generation to minimize spillage.

KenGen has at the same time advised communities living downstream Kiambere dam or near the banks of the Tana River in Garissa and Garsen areas to move to higher grounds to mitigate any possible adverse effects of flooding.

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ENDs.

 

 

 

 

KenGen Wins EAPIC Awards
 

KenGen NEWS RELEASE
KENGEN WINS PRESTIGIOUS AWARDS

Nairobi, Friday 28th August 2015………
KenGen scored a double win at the prestigious East African Power Industry Awards gala in Nairobi when the company was voted best in East Africa in the categories of Excellence in Power Generation and Outstanding Clean Power Project Award. Bot awards are in recognition for the 280MW Olkaria Geothermal Expansion Project.
The awards which honour outstanding power industry professionals, projects and companies in the East African region were awarded at a colorful dinner gala held on Thursday evening in a Nairobi City hotel. As an excellent power producer, judges based on the impact created by the 280MW project and the effort that went into making the project happen.
The Olkaria 280MW which came online in December comprises the 140MW Olkaria IV and the Olkaria 1 units 4 and 5 each with a capacity of 70MW. This project has helped the country save billions each month by displacing an equivalent amount of thermal electricity generation that use costly fossil fuels in favour of the much cheaper electricity from geothermal. 
“The final piece in one of the largest geothermal power projects in the world. Making Kenya rise among the top ten world leaders in geothermal energy and significantly contributing to bringing down the cost of power in Kenya by directly offsetting thermal based generation. The 280MW is an excellent project,” said the judges. 
The win is a double score for KenGen this year. In May, during this year’s Africa Utilities’ Awards, KenGen won two Continental awards after it was voted Africa’s Best Energy Company in a survey featuring major utilities across the continent. Additionally, the 280MW – KenGen’s flagship vision 2030 project and the world’s single largest geothermal project was voted best Clean Energy Project during the same awards. These awards showcase projects that are solving Africa’s energy challenges. The awards attracted the worthy notice and congratulations from His Excellency President Uhuru Kenyatta. Earlier this year, in his speech at the inauguration of the Olkaria I Units 4&5 power plant, His Excellency the President applauded KenGen as the bedrock of Powering Freedom for Kenya. No doubt, KenGen has made an undeniable contribution to the stellar national economic performance.
This year, Kenya was rated as the third fastest growing economy in the world among developing economies. The February Issue of the Fortune Magazine has also recognized Kenya as the best African emerging economy to invest in and 7th best investment destination in emerging global markets alongside India, Malaysia, Indonesia, Mexico, Poland and Colombia. All this has been underpinned by developments in infrastructure led by the power industry.
Last December, KenGen connected two plants – Olkaria I unit 4& 5 and 140MW Olkaria IV to the national grid, paving the way for the project to feed the national grid in what is seen as a major step toward significantly lowering the cost of electricity in the country. This project- which is the largest single geothermal investment in the world, said the judges, was a major milestone.
“A major milestone was achieved on the 280MW project when the additional geothermal power has helped cut electricity bills by about 30% since August 2014 following a 65% drop in the fuel surcharge to stabilize at just over Sh2.50 per kWh lately. Power economists say the project has enable savings amounting to Sh.2.2 billion monthly.
KenGen is Kenya’s biggest power producer, producing 1,595megawatts (MW) or 75 % of national installed capacity. The company has also lined up a mix of sustainable projects led by geothermal sources. The company plans to add a further 480MW to the national grid by 2017, being its contribution to the Government’s 5,000MW+ program.

Over the past year, KenGen has achieved several milestones, including consolidating its market share to 74%. The 280MW, which has been running since last December is a score for KenGen and the country, having helped, displaced a similar amount of the expensive thermal power from the grid. Additionally, the plant has moved the country up the geothermal ladder globally. KenGen's geothermal capacity has increased four-fold to the current level of 470MW, while Kenya is now the world’s eighth largest supplier of geothermal energy, with 585MW of installed capacity (this represents five per cent of the total global geothermal production).

Geothermal has surpassed hydro as the main source of electricity since December 2014, thereby removing the need for rationing electricity in times of drought. Geothermal is no doubt reducing fuel imports which is improving the performance of the Kenya Shilling against international currencies. Additional geothermal power is set to do more good for this nation and KenGen is at the forefront of these laudable efforts.

ENDs…

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KenGen Drilling Programme Records Unique Success 
 
 

Press Release
KenGen Drilling Programme Records Unique Success 
June 25 : KenGen has recorded significant steam finds in Olkaria, putting the company in a prime position to begin the next phase of capacity enhancement projects which are largely based on geothermal energy.
A total of 375 megawatts (MW) is currently available for three planned projects with a total capacity of 350MW as the company continues to drill wells to supply steam for an additional 70MW unit at the recently commissioned Olkaria I Unit 4&5 plant . Other projects are the 140MW Olkaria V and Olkaria VI plants, which the company plans to develop in the next 2-4 years. The 140MW Olkaria V, KenGen’s next project, is set to kick off before the end of the year. 
“The current steam available is 374.7MW. This is available for Olkaria 1 Unit 6, a single unit of 70 MW to be constructed at Olkaria 1. Available steam for this plant is 84 MW,” said KenGen’s director for Geothermal Development, Eng. Abel Rotich. 
“Olkaria V Power Plant is a 140 MW Project. Steam available for this plant is 166.4 MW while the other 140MW Olkaria VI plant has 124.3 MW of available steam,” says Mr Rotich, adding: “Testing of other wells is in progress. We are also drilling more wells which shall cover our requirements going forward.” 
The company is nearing completion of the drilling program whose aim was to supply steam for over 400MW that is planned for development in the next 2-4 years. The remaining steam will be used at the wellheads program to ensure that the steam available is converted to electricity at the earliest opportunity, pending construction of the power plants. This far, the wellhead generation units are providing a total of 45MW of electricity.
KenGen has exceeded required steam levels, which enhances guarantees towards financing for the projects. It also means that the company has already provided steam for future plants exceeding the requirements of the three projects under this drilling program. 
Already, the company has picked consultants for the project and is in the process of selecting contractors. Negotiations for funding are progressing well with development partners. 
The huge steam finds have been due to the company’s experience in geothermal exploration, improved technology and world-class expertise. Known as the multi-well pad drilling approach, it employs both the directional and straight well drilling. A three wells-pad 921 have been tested and proven to give a total output of 32.7 MW. 
“Three wells have been drilled on pad 921. The total discharge from this pad (A pad refers to group of several wells) is 32.7 MW. However, OW-921A discharge data is only preliminary and it is anticipated that if tested at wellhead pressures, output could be more than 30 MW. We plan to carry out long term discharge tests on the well once proper disposal arrangement is in place,” said Mr Rotich. 
Previously, the highest yielding pad, also with three wells was at 33MW and forms one of Africa’s biggest well-pad which is located in the geothermal-rich Olkaria area. The well was connected to the 140MW Olkaria IV project , which is part of the milestone 280MW project.
KenGen has drilled 137 wells since 2007, way above the target of 100 wells. Eight rigs are in operation at the Olkaria steam fields.
To accelerate its geothermal power production programme, KenGen has explored the innovative wellhead technology which is faster to deploy. To date, 45MW of power is being produced using this technology while KenGen is on schedule to add an additional 30MW to this fleet. Fourteen such wellheads are expected to be completed by 2016. 
Geothermal sources currently account for one-third of the national installed capacity estimated at 2 150 MW but provide more than half of the energy generated due to its high energy yield and stability against weather variations. Geothermal is poised to be the future dominant source of electricity.
KenGen plans to add at least 3,000 megawatts to the national grid by 2018, mostly from renewable sources such as geothermal and wind.

For More Information, 
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ENDs.

 

 

 

 

KenGen strikes 33MW from New geothermal wells in Olkaria 
 
KenGen strikes 33MW from New geothermal wells in Olkaria 

Olkaria Wells OW-923 Trio is among the biggest geothermal wells in the area

June 05 2015… The Kenya Electricity Generating Company (KenGen) has successfully drilled another set of big geothermal wells in this country, further boosting Kenya’s quest to be self sufficient in electricity.

Three wells located within one pad with a total capacity of 33 megawatts, form one of Africa’s biggest well-pad which is located in the geothermal-rich Olkaria area.

The wells comes months after, KenGen had mid last year, struck 30MW from a single geothermal well, named OW-921 in the same field. The well was connected to the 140MW Olkaria IV project.

The huge steam finds have been made possible owing to the company’s experience in geothermal exploration, improved technology and world-class expertise. Drilling fewer wells with higher output will see the company make savings running into millions of dollars.

“The multi-well pad drilling approach reduces drilling costs. We drilled two directional wells and one straight well and when we tested the wells, their output is up to 33 MW,” said Geothermal Development director Eng. Abel Rotich.

“It is not every day that we strike 33MW from a single pad. The normal average capacity from one well is 5MW. This means that we needed up to 6 wells to attain similar capacity. We have literally saved half of the drilling costs for 30MW with this single pad,” added Eng. Rotich.

The wells will be connected to the proposed 140MW Olkaria V project- KenGen’s next ambitious project which is set to break ground before end of this year.

“This development means that we have guaranteed up to 22% of steam towards the financing of the project. We are currently negotiating with the project’s consultants to hasten the progress of tendering for the EPC Contractors while funding is also being discussed with various development partners,” he said further adding:
“The new well-pad, which is among the biggest in the country, firmly positions Kenya as a major geothermal power producer globally and helps to meet Kenya’s growing demand for electricity as the country implements the Vision 2030 of becoming an industrialized economy”.

The developments are important as the country is now relying heavily on geothermal after the full 280MW came on stream from December last year.

The enhanced geothermal production has helped stabilize company’s top line performance with revenues for the half-year period ending 31st December 2014, jumping by KShs. 3 billion to Kshs12.8 billion. Net profitability for the same six months period to December, was up by 380% to Kshs4.9 billion. 

Geothermal which peaked last December is still the main source of electricity followed by hydro. However, the full benefits of the phased 280MW have already reflected on the power bills. Data from the industry regulator showed that the share of geothermal stood at 47.9 % of the national mix for the first quarter of the year.

To accelerate its geothermal power production programme, KenGen has also resorted to mobile wellhead plants which are faster to deploy. Fourteen such wellheads are expected to be complete by 2016.

To this end, a transmission line connecting a new well head Unit 914 has been completed paving the way for injection of a further 27MW from the wellhead units.

KenGen plans to add at least 3,000 megawatts to its power generation fleet by 2018, a good chunk of which will be from renewable sources such as geothermal and wind.

For More Information, 
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Email: pr@kengen.co.ke
ENDs.

 

 

Hydro Generation to Go Up as Dams Fill Up 
 
Press Release

Hydro Generation to Go Up as Dams Fill Up

May 25 2015…Generation from the cheaper hydro sources is set to go up in the coming weeks following significant rise in water levels at the main power dams.

The dams at the main generating dams at the seven forks hydro-electric power and at the Turkwel power dam have been rising in recent weeks while inflows at the Sondu and Sangoro stations are good, according to energy planners at the public power generating company, KenGen.

KenGen CEO Eng. Albert Mugo says favorable weather will raise contribution from the hydro power stations going forward.

“From the daily reservoir reports, the inflows have been very good. The main Masinga dam has risen over four meters since May 1 2015. Average output from hydro has also increased from around 8.6GWh to over 10 GWh per day.”, says Eng. Mugo.

“We will step up hydro generation in the months ahead but ensure we conserve available water to last until the short rains later in the year ,” says the CEO.

Forecasts by the Meteorological Services also show that current high rainfall at the major catchment areas are set to significantly improve the water levels by the end of the long rains season .

“The Tana River, Turkwel and Sondu Miriu catchment areas are expected to experience near normal rainfall with a tendency to above normal during the current season”, says Met in their latest update. 

“It is, therefore, expected that the level of water in the Seven Forks and other hydroelectric power generation dams will gradually improve during the season”, added officials.

As of last evening, levels at the Masinga Power dam stood at 1,052.8 meters above sea level (masl), having gained four metres over levels recorded at the beginning of May. At the end of April, the dam level stood at 1047.6 masl. At the Masinga dam and indeed the entire seven folks cascade, maximum generation is attained when the water reaches full supply level at 1,056.5 masl, beyond which the dams will attain their spilling points.

At the Turkwel power dam, water levels there stand at 1,123.9 masl, against spilling points at 1,150 masl.

By stepping up hydro generation, KenGen is ensuring stability and predictability of power bills as this will compliment contribution of the dominant geothermal but whose full benefits have been realized by consumers.

Geothermal has for the sixth month in a row been the dominant source of electric energy contributing an average of 300 kilowatt hours (kWh) compared to 260 kWh from hydro sources. This followed the injection of 280 megawatts (MW) to the national grid in December last year coupled with a prolonged dry spell spanning five months which relegated hydro to second place as a source of electricity.
“Kenya is now relying heavily on geothermal with the entire capacity of the 280MW coming on stream from December last year. The impact of geothermal is positive in stabilizing our revenues,” says the CEO.

During normal hydrology, hydro dams account for 52.04% of total national mix, The total installed hydro capacity is at 820MW, but daily output is pegged at 797MW. However, geothermal operates at a higher load factor (output) almost 100 % compared with hydro’s which is solely dependent on the weather. 
A combination of the two sources will yield a healthy generation mix from the two cheapest sources of electricity. Hydro sources can also be used for peaking in place of the highly priced thermal sources, thereby ushering an era of stability and predictability on the power bills. The improved hydrology is a double blessing for KenGen in regard to stability of revenues as well as a low cost back up to electricity customers who can rest assured of fairly stable power.
KenGen is also investing heavily in complementary and cheaper sustainable sources such as the pioneering well head condensing technology and wind farms to meet rising demand. The firm which has recently expanded the Ngong’ wind power plant to 25MW capacity is also gearing up for the 100MW Meru wind project. In the meantime, KenGen is finalizing plans for development of up to 350MW in additional new geothermal projects to further consolidate the 80% market strength.

For More Information, 
Kindly call our Media Relations Office, 
0711036708
Email: pr@kengen.co.ke
 

 

KenGen Bags Prestigious Awards
 

PRESS STATEMENT

 

KenGen Bags Prestigious Awards

The Kenya Electricity Generating Company (KenGen) has been voted Africa’s 2014/2015 Energy Company in a survey featuring major utilities across the continent. Additionally, the 280MW - its flagship project and the world’s single largest geothermal project -has been voted as this year’s clean energy project. 
The company was feted at this year’s Africa Utilities’ Awards event bringing together experts to showcase renewable projects that are solving Africa’s energy challenges. The award ceremony was held in Cape Town, South Africa.
President Kenyatta led Kenyans in sending congratulatory messages to the company for the fete.

“The 280MW Olkaria Geothermal Project , the world’s largest such power plant of its kind was voted Africa’s Clean Energy Project of the year 2014/15 while KenGen was voted as Africa’s power firm of the year . Congratulations”, said President Kenyatta.

Over the past year, KenGen has achieved several milestones, including consolidating its market share to 79 %.

The 280MW, which has been running since last December is a score for KenGen and the country, having helped, displaced a similar amount of the expensive thermal power from the grid.

Additionally, the plant has moved the country up the geothermal ladder globally. KenGen's geothermal capacity has increased four-fold to the current level of 470MW, while Kenya is now the world’s eighth largest supplier of geothermal energy, with 585MW of installed capacity (this represents five per cent of the total global geothermal production). 
The 280 MW lifted KenGen’s half year revenues by Kshs.3 billion to Kshs12.8 billion while greening the national electricity generation mix. Currently, the company is injecting 1575 MW to the national grid, with geothermal for the sixth month has been the main source of electricity and complements output from hydro dams. 
The Olkaria project is also important for electricity trade among the East African countries as KenGen is sharing its skills, expertise and experiences as they also seek to exploit their geothermal resources.
KenGen had been nominated alongside five other firms: African Power Utility of the Year Electricity Company and GRIDCo, both from Ghana. Uganda’s Electricity Transmission Company Limited, and Umeme. Another contestant was Niger Delta Power Holding Company Ltd of Nigeria.
Firms from South Africa dominated the list of those competing for the Clean Energy Project. They were: Black River Park Office – North Park, Jasper Solar Project, Solar Reserve LTD, Kaxu Solar One, Abengoa Solar. Also on the list was Rwanda’s Field Plant, Gigawatt Global Rwanda.

“KenGen is proud to be on the lead in moving the country towards self-sufficiency and providing reliable, affordable and renewable energy,” said Managing Director and CEO Eng. Albert Mugo of the award.

ENDs.

 

 

 

 

KenGen commissions entire 280MW geothermal project
 
  

KenGen commissions the entire 280MW geothermal project

 

The Kenya Electricity Generating Company (KenGen) on Thursday last week inaugurated the 140MW Olkaria 1 power plant, the last phase of the 280 MW of Olkaria geothermal power, a move that is expected to further stabilise the cost of electricity in the country.

H.E President Paul Kagame of the Republic of Rwanda presided over the historic event accompanied by his host H.E President Kenyatta.

Following the addition to the national grid of 280 MW geothermal power,  the cost of Fuel cost component, the single biggest item on the bills, has fallen to a low of KShs/kWh 2.51 in February 2015. This represents a 65% drop in the FCC. As a result, it has led to a decline in the overall cost of power to consumers.

The cost of fuel cost adjustment, the single major cost item on  the power bills has dropped nearly three fold to Sh2.51 per kwh in the February, down from Sh7.22 per kwh in August last year when the first unit of the 280MW project started injecting to the national grid.  This represents a drop of 65 % over this period.The Olkaria 280MW project comprises the 140MW Olkaria IV and the Olkaria I units 4 and 5 each with a capacity of 70MW.

“KenGen is proud to be on the lead in moving the country towards self sufficiency of reliable and affordable and renewable source of energy, which is also available almost 24/7,” says managing director and CEO Eng. Albert Mugo.

The 280MW which has been running and stable on the grid since December has helped reduce the cost of power by displacing the expensive thermal fuel. At the same time, it has also helped stabilise the country’s power supply by reducing dependence on hydro, which is prone to weather variations. In recent months, the country has had no rainfall and subsequently below average inflow of water into our hydro dams .

Currently, the company is injecting 1575 MW to the national grid, with geothermal for the fourth month in a row surpassing hydro as the main source the electricity and helped avert power shortages at a time when rains have failed for the better part of last year and into the new year.  At 7.2 US cents per kilowatt hour, , geothermal energy is among the cheapest renewable sources of electricity in the country and the world.   

It currently accounts for 51% of the national generation mix , and has also averaged 41 per cent over the past six months.  At 36 per cent, hydro has been relegated to second place. This is because of the failed rains leading to poor inflow of water to the generating dams in recent months.

Thermal sources or those powered by medium speed diesel and heavy fuel oil accounted for 21% and is the third highest source of electricity. This represents a consistent decline from the 47 per cent that these sources contributed prior to the 280MW and also at times of poor hydrology which was prevalent during 2014.

 “The country has not experienced power rationing despite low water levels in the hydro generation dams on the Tana Cascade. “This is because the 280 MW project has helped to bridge the power deficit ”.

Kengen total generated/ sold units between Jan 2014 and Jan 2015

 

 

Generation mode

Generated units (Jan 2014) kWh

Generated units (Jan 2015) kWh

Major Hydros

   328,852,708

   267,731,340

Geothermal

     98,886,585

   310,301,472

Thermal

     73,901,477

     44,794,624

Wind

       2,336,500

       4,842,734

Small hydros

     10,355,943

     10,333,716

Total

       514,333,213

       638,003,886

 

 

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