The government now says that the only way of driving down the soaring cost of electricity lies in tapping more renewable energy.
To this end, the Ministry of Energy has challenged Kengen to seek more energy from geothermal, wind, hydro and solar as a way of dealing with the current challenge.
According to the PS in the Ministry Alex Wachira, Kengen remained a major player in the energy sector by contributing up to 75 percent of energy in the country.
In a report published in the company’s weekly newsletter, Wachira challenged the company to focus on growing the base load of electricity using renewable energy sources.
“Kengen has the capacity to tap into geothermal, hydro, wind and solar energy and this will help drive down the cost of electricity,” he said.
The PS lauded KenGen's consistency in delivering value to shareholders, which he attributed to its corporate strategy that had seen the company diversify into new revenue streams.
"Going forward, KenGen must grow its business as it remains a major player in the energy value chain, contributing between 67 and 75 percent of electricity consumption at any time," he said.
Earlier, the company embarked on the process of rehabilitating the Olkaria I geothermal power plant in Naivasha with plans to increase the power supply by an extra 20mw
According to Kengen Geothermal Development General Manager Peketsa Mangi, the power plant had already been shut down to pave the way for the works.
Mangi was optimistic that the power plant would come back bigger and stronger as the contractor moved in to replace the old turbines.
“The power plant was originally generating 45mw but we expect this to rise to 63mw when the rehabilitation exercise is done in a couple of years,” he said.
Speaking in Naivasha, the senior officer said that the deficit caused by the shutting down of the old power plant had been addressed by 86mw from Olkaria I (unit 6) plant.
“In a bid to address the issue of electricity security, the government shall be launching the Ethiopia-Kenya transmission line where we shall be getting an extra 200mw,” he said.
Mangi at the same time announced that work on the multi-million Geothermal Training center in Naivasha would start in a couple of weeks.
The project which has been funded by the World Bank at a cost of $2.8m will offer training in renewable energy and is expected to be ready by next year.
