Chinese Firm Wins KenGen's Olkaria Geothermal Plant Rehabilitation Contract

An aerial view of the Olkaria I. 

Chinese firm SEPCOIII Electric Power Construction Co. Ltd has won a multi-billion-shilling deal to rehabilitate the Olkaria Geothermal Power Plant in Naivasha. 

Upon the restoration of the oldest geothermal power station in Kenya, the country's electricity production is poised to rise by 18 megawatts. Olkaria I was the first geothermal power plant to be built in Kenya with its first production unit installed in 1981. 

According to Kengen, the Olkaria I power plant in Naivasha will see its geothermal production increase from 45MW to 63MW under a four-year revitalization plan. SEPCOIII Electric Power Construction Company and Toshiba Energy Systems and Solutions Corporation (Toshiba ESS) have been awarded contracts to provide steam turbines and generators for the plant's three units.

Kengen's modernization project, slated for completion by December 2026, aims to achieve a shift to entirely green energy by 2030, as stated by the firm's managing director Peter Njenga. The ongoing work on the plant, which was commissioned in 1981, is expected to enhance its operational efficiency.

"The renovation of Olkaria I represents a historic milestone for KenGen as we continue our commitment to sustainable energy solutions," KenGen Managing Director and CEO said in a press statement.

"By leveraging the latest advancements in geothermal technology, we aim to enhance the performance of the plant but also set new standards for renewable energy production in Kenya," he further stated.  

Njenga mentioned that the modernization efforts are aligned with the government's strategy to replace costly thermal power with readily accessible green energy sources like geothermal.

"As the oldest geothermal power plant in Africa, Olkaria I holds significant historical importance and stands as a testament to Kenya's pioneering efforts in renewable energy production," he said. 


Retired President Uhuru Kenyatta during the commissioning of Olkaria V and Olkaria I AU6 on 26th July 2022.

Olkaria I was the first geothermal power plant to be built in Kenya. It is one of the several plants owned by KenGen with an installed capacity totaling 801MW. The other plants are Olkaria I AU Units 4 & 5, Olkaria I AU Unit 6, Olkaria II, Olkaria IV, Olkaria V, Eburru and several wellhead units. 

The initiative forms a component of KenGen's broader strategy to enhance the output capabilities of its current facilities. In addition to the Olkaria I refurbishment, the power producer intends to modernize Olkaria IV, Olkaria I Units IV and V, along with the Gogo hydropower plants.

Njenga stated that KenGen's thorough refurbishment effort aims to prolong the plant's operational longevity and set a precedent for sustainable energy growth.

We want to have a model that can be replicated across the region as the country angles to exploit the 10,000MW of geothermal potential in the Rift Valley region," the MD said. 


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