Kenya’s KenGen eyes $686 million gas-fired power plant

• 11 years ago (2012-05-19)
• David Flin

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Kenyan electricity generating company KenGen has said that it plans to raise funds from private investors for a $686 million gas-fired power plant to run on imported liquefied natural gas (LNG).

Eddy Njoroge, Managing Director of KenGen, said that the plant would help meet growing demand for electricity and help prevent frequent blackouts in east Africa’s biggest economy caused by generation shortfalls and an ageing grid. The company, which currently relies largely on hydropower, plans to raise the money for the project due by 2015 by appealing to private investors. It said that it also expected the government to contribute capital. Njoroge said he expects the plant to provide 485 MW and to have an economic life of 20 years.

The plant will be located at the port of Mombassa, and will be fuelled by LNG processed at a nearby facility. It will reduce over-reliance on the more costly heavy fuel oil KenGen has resorted to during dry spells.

KenGen currently generates a total of 1414 MW from a mix of thermal, renewable energy and existing hydropower dams, while Kenya’s electricity demand currently stands at 1200 MW and is rising rapidly as the country becomes increasingly industrialised.