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Kenya's KenGen Says to Add Extra 1,745 MW to Grid by 2025

A general view shows a cross-section of the Olkaria IV Geothermal power plant near the Rift Valley town of Naivasha, Kenya, Feb. 15, 2018.

State-run Kenya Electricity Generating Company (KenGen) plans to add 1,745 megawatts (MW) of electricity from geothermal sources by 2025, part of a government push to end power generation from fossil fuels.

"You are aware that going forward, the government policy which all generators including KenGen and including independent power producers, is to eliminate generation from fossil fuels," Moses Wekesa, Business Development Director, said during a visit to KenGen's geothermal plants last week.

Kenya has an installed generating capacity of 2,370 MW and peak demand of about 1,770 MW. Of this, KenGen, which is 70 percent owned by the government, has an installed capacity of 1,631 MW, with 533 MW from geothermal.

Demand for electricity is growing at about 8 percent per year until 2020, and will rise to 9 percent in 2021, after which it will stabilize at 7 percent, according to the government's transmission and generation plan.

"First as a rule of thumb, your supply must always be ahead of demand. The reason being, that it takes a while to put up a power plant," Wekesa said.

The East African nation is ramping up electricity production and investing in its grid to keep up with growing demand for power and to reduce frequent blackouts. It relies heavily on renewables such as geothermal and hydro power.

Kenya is ranked at No.37 worldwide by Ernst and Young's latest Renewable energy country attractiveness index, issued in October.

The Geothermal Resources Council ranks Kenya at no. 8 worldwide in terms of installed capacity from geothermal.