State-owned electricity producer Kenya Electricity Generating Company (KenGen) is seeking a joint venture (JV) with an external investor as it looks to raise the stock of green energy.
KenGen, which has a 1,796.4 megawatt annual capacity and supplies 75 percent of Kenya’s electricity, said the successful firm will enter into a joint venture with KenGen and create a special purpose vehicle (SPV) to finance and develop a 140 megawatt (MW) geothermal plant in Olkaria, Naivasha. The firm will have a majority 75 percent stake.
The plans come at a time mega electricity generation projects valued at billions of shillings are in limbo after distributor Kenya Power indefinitely froze the signing of new power purchase agreements (PPAs), citing financial constraints and excess capacity. Kenya Power chairman Mahboub Maalim Mohamed early this year said the monopoly would not sign new PPAs pending a sector review intended to establish the country’s additional demand for energy.