Kenya invests in the Ethiopian Geothermal Market

Kenya invests in the Ethiopian Geothermal Market

Kenya’s leading power generator-Kenya Electricity Generating Company (KenGen) secured a US$56.2 million contract to drill 12 geothermal wells in Ethiopia. The World Bank provided a loan of US $76,80 Million to the Ethiopian Government to implement this project.

The contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO), will also include installing a water supply system and equipment.

KenGen will supply drilling materials and also provide operation and maintenance services for both the drilling equipment and the water supply system. It is the second and the company’s largest consultancy outside Kenya after the geothermal wells project for the Ethiopian Electric Power (EEP) in Aluto.

The project is implemented in two phases; Phase I comprises the purchase of drilling rigs while Phase II entails the provision of drilling services.

KenGen is supplying about 30 percent of the components of Phase II, which translates into approximately US$6.2 million. KenGen, which has embarked on a diversification strategy, leverages its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other related services across Africa. The company has a Geothermal Centre of Excellence, which conducts training programs for both local and international students.

Kenya is Africa’s number one geothermal energy producer and among the top 10 in the world. The country has an estimated potential of 10 GW along the Rift Valley.

KenGen has a geothermal installed capacity of 698 MW and is the leading geothermal power producer in Africa. During the company’s last financial year, revenue generated from geothermal power plants increased from US $156 million in 2017 to US$165.7 million in 2018, which was a growth of six percent.

Keygen is exploring expansion opportunities and extend to oil and mining sectors in the region.

TMGO is an IPP owned by two equity partners, namely Meridiam-the majority shareholder with 51% and Reykjavik Geothermal, which owns 49%.

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Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.