Infrastructure

KenGen Advances Plan for Sh110bn OlKaria Energy Park

The park will sit on 1,824 hectares at the Olkaria geothermal hub.

Updated on

March 13, 2023

The geothermal complex at Olkaria in Naivasha. PHOTO | FILE

Kenya’s leading electricity producer KenGen is advancing plans for an ambitious project to build a Sh110 billion energy park at Olkaria in Naivasha, Nakuru County.

The industrial park, whose construction will begin in 2025, will target industries such as fertilizer, iron, steel, textile, foods, and beverages, among others.

The project will sit on KenGen’s 1,824 hectares at the Olkaria geothermal hub.

The company has submitted a strategic environmental and social assessment (SESA) report for its Energy (Industrial) Masterplan to the National Environment Management Authority (Nema), which has invited public comments on the project.

“The proposed masterplan is scheduled to be implemented in four phases of five years each with the initial phase anticipated to kick off in the year 2025,” Nema says in a notice inviting public comments on the project.

The KenGen Energy (Industrial) Park will be completed in 2045.

In 2014, the company opened a search for a consultant to carry out a feasibility study on the project as well as to prepare a master plan and budget for the same.

The consultant was also to create the energy park’s implementation roadmap, institutional framework, marketing plan, and financial model.

South Korean firm

In February 2016, KenGen appointed a South Korean firm to conduct a feasibility study for the project that would be completed in two decades.

In 2017, the electricity producer opened a search for build-own-operate-transfer contractors for the project that will involve setting up an energy park, building manufacturing units, and warehouses, and installation of steam generation facilities.

KenGen Energy Park will cater to all sizes of industries – from small to heavy industries – all of whom will enjoy cheaper electricity provided by the company.

40MW solar plant

Meanwhile, KenGen says it has invested in a 40MW solar photovoltaic (PV) pilot plant at the Seven Forks Hydro Stations in Eastern Kenya.

The solar power plant is expected to diversify revenues while taking advantage of the spaces around KenGen’s existing projects for value-addition.

According to KenGen, the solar plant will be set up on 80 hectares of land wholly owned by the company, and free of human settlement.

The site has a high solar irradiation of more than 2,000kWh/m².

The development is part of the company’s revamped corporate strategy that seeks to add 3,000MW to the national grid within the next 10 years.

This will double the country’s installed generation capacity to 6,000MW.

KenGen is also advancing plans for the rehabilitation of its existing power plants to make them more efficient for sustainable generation of electricity.