KENGEN SIGNED KSHS 5.8 BN DEAL TO SUPPORT ETHIOPIAN GEOTHERMAL ENERGY PROJECTS
Posted on : Monday, 18th November 2019
Kenya energy generator, KenGen has signed a Kshs 5.8 Bn deal to drill 12 geothermal wells in Ethiopia and boost the countries energy needs. In contract with Ethiopian independent power producer Tulu Moye Geothermal Operations (TMGO) PLC, KenGen will also grant water supply system and equipment.
After KenGen, won a contract to drill geothermal wells for the Ethiopian Electric Power (EEP) in Aluto, Ethiopia this is the second project for in Ethiopia.
The project is being carried out in two phases; Phase I comprises the purchase of drilling rigs while Phase II entails the supplies of drilling services. KenGen is providing about 30 per cent of the components of Phase II which translates into about USD 6.2 Mn (about Ksh 620 Mn).
“As top geothermal energy supplier in Africa, KenGen has been an inspiration to the region. TMGO is excited to become development partners with such a powerhouse; this agreement is a sign of mutual trust and obliging to advancing geothermal energy, which in turn encourages sustainable development in Ethiopia and Africa as a whole,” a statement from the signing said.
“Since beginning, the company has made considerable inroads in Kenya’s energy sector, growing over the years to the current sales market share of about 80% of the electricity consumed by Kenyans,” KenGen said in a statement.
“This juridicial agreement is proof that African nations can work together in technology transfer, capacity building and skills development to support the continent in growing its geothermal sector,” it continued. The project is supported by finance from World Bank.
KenGen is the biggest geothermal producer in Africa and the 9th globally.
