US to expand geothermal power generation in Kenya
2 min read
US power firm OrPower plans to upgrade geothermal power generation from its four wells in the Olkaria Three Complex in Kenya
US power firm OrPower plans to upgrade geothermal power generation from its four wells in the Olkaria Three Complex in Kenya.
US-owned OrPower 4 is expanding the generation capacity of its geothermal wells to boost electricity sales.
The independent power producer generates 120 megawatts from its four geothermal wells in the Olkaria Three Complex.
However, it did not disclose the anticipated increase in capacity under the project set for completion by the end of this year.
Since its supplies have decreased over time, OrPower, Kenya Power’s third-largest energy supplier, has decided to raise its generation capacity even as it struggles with growing payment delays for its electricity sales.
“We are performing a drilling campaign and expect to increase plant capacity in 2023,” says OrPower in its latest annual report.
The firm’s decision to upgrade the capacity of its plants is driven by Kenya’s move to fully transition to clean energy by 2030, driven by increased tapping of geothermal, solar, and wind energy sources.
Currently, an estimated 80 percent of Kenya’s electricity is from clean sources mainly geothermal and wind.
OrPower’s electricity sales to Kenya Power have declined over the years to 976 gigawatts-hour (GWh) in the year to June 2022 from a high of 1,285 GWh between 2018-19.
Security tight as police mount roadblocks ahead of Saba Saba protests
Protest against British Army in Kenya over discrimination and sexual Harassment
Raila issues final directives on Saba Saba march
Putin humiliates Wagner Group leader Prigozhin as he raids his mansion
The disclosures show that Kenya Power is yet to pay the power producer $11.8 million (Sh1.76 billion at current exchange rates) for electricity supplied last year.
The total debt was $27 million but Kenya Power paid $15.2 million (Sh1.9 billion) in February even as OrPower flagged the delays in the payments.
OrPower 4 Inc. supplied 976 GWh to Kenya Power in the year ended June 2022, making it the third biggest producer behind Turkana Wind Power at 1,573 GWh and KenGen (7,911 GWh).
Kenya Power is the third biggest customer for OrPower 4 Inc. and accounted for 14.4 percent of the revenues in the year ended December, behind US utilities, Southern California Public Power Authority, and NV Energy at 16.9 percent and 21.5 percent respectively.
OrPower 4 Inc. has a twenty-year power purchase deal with Kenya Power that lapses between 2033 and 2036.
The PPA deal for the firm’s Plant Two will lapse in 2033 followed by the deal for Plant One and Three that ends in 2034 and that for Plant Four in 2036.
Also read,
Government launches Unified Payroll Number (UPN) system
Ruto offers scholarships to Comoros students
Karua ignites social media with TBT Photo with Raila ahead of Saba Saba march “Not Yet There”
Courts have no power to revoke Finance Act 2023; Kenya Kwanza MP
Follow us
