Tuesday, October 13, 2015

Kenya: Doubling of Geothermal Energy Capacity Helps Boost KenGen profits

KenGen powers 2015 net profit to Sh11.5bn (Capital FM Kenya - News Release)

The Kenya Electricity Generating Company (KenGen) has posted a 308 percent rise in its net profit to Sh11.5 billion for the financial year ended June 30, 2015 from Sh2.8 billion in 2014.

The firm attributes the growth in profitability to increased installed capacity, better performance and tax credit from capital allowances following the commissioning of the 280 Megawatts (MW) Geothermal project and wellheads in Olkaria and the Ngong wind project.

Total revenue grew by 44 percent from Sh18.5 billion to Sh26.6 billion in June with geothermal contributing 46 percent, an increase of 21 percent compared to last year.

Capacity from geothermal sources increased by 99 percent from 256 MW in 2014 to 509 MW.

KenGen now plans to focus on the implementation of 511 MW geothermal projects comprising the 70 MW Olkaria 1 Unit 6, 140 MW each for Olkaria V and VI, 75 MW Wellheads and refurbishment of the old Olkaria 1 from 45 MW to 50.7 MW that it plans to develop in the next two to four years.

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