KenGen’s Commitment to Renewable Energy Leadership

Last Updated 3 weeks ago by Kenya Engineer

Kenya Electricity Generating Company PLC (KenGen) has reported significant strides in its renewable energy initiatives for the fiscal year ending June 30, 2024. The company saw notable growth driven by its investments in geothermal and hydroelectric power, which have been pivotal to Kenya’s energy transition.

KenGen’s renewable energy output played a critical role in its robust financial performance, with the dispatch of 8,384GWh (Gigawatt-hours) of electricity, up from 8,027GWh in 2023. This increase was achieved despite challenging weather patterns and inflationary pressures that affected many businesses in Kenya.

Eng. Peter Njenga, KenGen’s Managing Director and CEO, highlighted, “This outstanding performance reinforces our commitment to delivering affordable, reliable power while continuing to invest in renewable energy projects that align with Kenya’s goal of 100% green energy by 2030.”

The company maintained a stable operating profit of Ksh.9.6 billion through strategic cost management and operational efficiency. KenGen’s renewable energy plants, particularly geothermal and hydroelectric facilities, were instrumental in meeting the peak electricity demand of 2,149MW during the review period.

“Despite global macroeconomic challenges, characterized by high inflation and foreign exchange volatility, we instilled financial discipline and implemented prudent cost management, which helped us control operational costs,” said Eng. Njenga.

KenGen also reported total revenues of Ksh.56.3 billion, an increase of Ksh.2.3 billion from the previous year. This growth was realized even as the company decommissioned over 130MW of fossil fuel-powered plants in Kipevu and Muhoroni, reinforcing its commitment to green energy.

“The shift towards renewable energy is central to our strategy to meet growing energy demands while reducing our carbon footprint,” said Eng. Njenga. He emphasized that KenGen’s performance reflects its strategic focus on expanding renewable energy capacity while enhancing operational efficiency.

Kenya has earned a reputation as a renewable energy leader in Africa, with up to 90% of its electricity sourced from renewables. KenGen, which produces approximately 70% of the country’s electricity, has been pivotal in this transition, particularly through its geothermal projects.

Looking ahead, KenGen is set to diversify revenue streams through projects such as the Green Energy Park at Olkaria, which will provide industries with sustainable operational platforms. The company is also scaling its commercial drilling services for geothermal projects across the region.

KenGen’s strategic plan, dubbed Good-2-Great (G2G) 2024–2034, aims to drive its next growth phase by increasing renewable energy capacity by 1,500MW, optimizing operational efficiency, and adopting advanced technologies to lead in the evolving energy sector. This plan is expected to support Kenya’s socio-economic development through improved energy access and environmental sustainability.

“We have several major renewable projects in the pipeline, including the 42.5MW Seven Forks solar plant, the rehabilitation of Olkaria I geothermal power plant to add 63MW, and the redevelopment of Gogo hydropower station targeting 8.6MW,” said Eng. Njenga. He emphasized KenGen’s dedication to the timely and budget-conscious execution of these green projects.

Eng. Njenga concluded, “Our strategy extends beyond profit generation. At KenGen, we are committed to environmental stewardship and sustainable growth. Expanding our renewable energy portfolio aligns with our mission to support Kenya’s climate goals and contribute to global climate change mitigation. As we continue investing in green technologies, we aim to play a significant role in the fight against climate change.”

KenGen’s outlook, bolstered by its renewable energy focus and strategic initiatives, positions the company as a leader in shaping Africa’s energy future.

“As we move ahead, KenGen’s commitment to renewable energy, innovation, and sustainability will remain central to our mission. We are not just providing power; we are contributing to a greener, more sustainable future for Kenya and the region,” said Eng. Njenga.