Kenya Power and AGIL enter into power deal

geothermal sxcUse of geothermal power is part of Kenya’s strategy of diversifying the power generation mix for security of supply and reducing cost of electricity. (Image source: sxc.hu)The Kenya Power and Lighting Company (Kenya Power) has signed a power purchase agreement with Africa Geothermal International Kenya (AGIL) to establish a 140MW geothermal project in Longonot, Kenya

Kenya Power managing director Joseph Njoroge said the power purchase agreement was an important step in enabling the country meet its Vision 2030 goals of tapping cost-effective and environmentally-friendly geothermal power.

Njoroge said, “Use of geothermal power is part of the country’s strategy of diversifying the generation mix for security of supply and reducing the overall cost of electricity because it does not have fuel cost.

"Geothermal power unlike other renewable energy sources such as wind, solar or hydroelectric is not dependable upon weather. Geothermal power plants in Kenya and around the world operate at high capacity factors and provide needed base load generation.”

Under the power deal, AGIL will develop, construct, operate and maintain geothermal projects with Kenya Power purchasing the power generated.

The agreement has a term of 25 years after the power plant’s commercial operation date, scheduled for 2018. Project development and construction activities will be carried out in the interim period.

AGIL chief executive officer Fassine Fofana emphasised that the project was a significant milestone for the geothermal industry in Kenya and East Africa as it has brought private investment into the geothermal sector.

“This 140MW agreement provides the AGIL stakeholders the off-take certainty needed to advance the project and provides Kenya Power with an important addition to their generation plan,” said Fofana.

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