Kenya's energy landscape is set for a significant transformation as the country's leading power producer, KenGen, awards a lucrative contract to SEPCOIII Electric Power Construction Co. Ltd to upgrade the nation's oldest geothermal power plant, Olkaria I.

The multi-billion-shilling endeavour aims to boost the plant's output from 45 megawatts (MW) to an impressive 63MW.

Under the agreement, SEPCOIII will serve as the Engineering, Procurement, and Construction (EPC) contractor, ushering in a new era of advanced geothermal technology in Kenya.

Meanwhile, Toshiba Energy Systems and Solutions Corporation (Toshiba ESS), a Japanese firm, secures the contract to supply steam turbines and generators for the plant's three units.

While the precise value of these contracts remains undisclosed by KenGen, the company's managing director, Peter Njenga, emphasized the significance of technological advancements in the project.

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"By leveraging the latest advancements in geothermal technology, we aim to not only enhance the performance of the plant but also set new standards for renewable energy production in Kenya," declared Njenga.

Olkaria I, a pioneer in Kenya's geothermal energy landscape, saw its inception in 1981.

As part of KenGen's extensive portfolio, the plant contributes to the nation's energy security with an installed capacity totalling 801MW.

The modernization project, slated for completion by December 2026, represents a pivotal step in KenGen's strategy to bolster the capacity of its existing plants.

In addition to the Olkaria I upgrade, KenGen's ambitious plans encompass the modernization of Olkaria IV, as well as units IV and V of Olkaria I, and the Gogo hydropower plants.

The collective efforts are poised to significantly increase electricity generation output by up to 40 per cent, further solidifying Kenya's position as a regional leader in renewable energy.

The financial success of KenGen, evidenced by a profit after tax of Sh5.2 billion in the fiscal year ending June 2023, reflects the company's commitment to innovation and sustainable energy solutions.

With a growth of 48 per cent from the previous year, KenGen's robust performance underscores the immense potential of Kenya's renewable energy sector.

As Kenya embarks on this transformative journey, the upgrade of Olkaria I stands as a testament to the nation's unwavering commitment to harnessing clean, renewable energy sources for a brighter, sustainable future.