K E N YA E L E C T R I C I T Y G E N E R AT I N G C O M PA N Y
Taking Kenya from good to great
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ENERGY
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Kenya Electricity Generating Company is taking its renewable energy strategy to the masses in preparation for an exciting new decade in the industry Writer: Phoebe Calver Project Manager: Donovan Smith enya Electricity Generating Company (KenGen) is leading the power generator sector in Kenya, boasting an immense market share of 70 percent of the electricity capacity installed in the country. The Company was incorporated in 1954 under the Company Act of the Laws of Kenya - known then as Kenya Power Company (KPC) - and following on from this the shareholders of the Company contracted East Africa Power & Lighting Company (EAP&L) to manage and subsequently incorporate the creation of Kenya Power & Lighting Company (KPLC) in 1983. Governmental reforms hit the energy sector again and in 1996, major alterations were initiated, the generation of electricity was unbundled and the management of KPC was officially separated and renamed KenGen in January 1997. “At this point KenGen took charge of all the public generating assets, while KPLC maintained the transmission and distribution functions,” explains Albert Mugo, Managing Director at KenGen. “As the leading power generator in the country, the Company currently produces 80 percent of the electric energy in the country, owning 32 power plants with a combined capacity of 1,632MW.” In 2006, the Government sold 30 percent of its stake in the Company,
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leading to KenGen being listed on the Nairobi Securities Exchange (NSE) through a successful initial Public Offer (IPO), leading it to procure its current status in the market today. “Our business is to deliver both affordable and clean energy, while making the investments needed to ensure a sustainable future in the market,” continues Mugo. “Over the years our Company has made massive investments and grown its renewable energy portfolio to 88 percent - further reducing Kenya’s carbon footprint which enabled the country to attain a clean energy generation.” It is through continued strategies and developments that KenGen has reached the level of success it has today. In 2007, the Company developed a 10-year transformation strategy plan known as Good-toGreat (G2G), building on the idea of taking the country through the creation of sustainable value from one generation to the next of Kenyans. This strategy has since been revamped in preparation for the next 10 years with a medium-term focus on commissioning 720MW of mainly renewable energy by 2020.
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A decade of milestones
THE SDEMA GROUP
• Groundbreaking ceremony for the single largest geothermal project in the world (Olkaria: 280MW) • Largest wind farm in Kenya completed (Ngong: 25.5MW) • Ambitious Resettlement Action Plan (RAP) for 150 households in Olkaria, sub-project of the 280MW project • Innovative wellhead technology project of 75MW rolled out and completed in December, 2016. • Drilled the largest geothermal 30MW well in Africa • Quickest thermal power plant in East Africa commissioned in a record 14 months(Kipevu III: 120MW) • Largest public infrastructure bond in Kenya by a corporate • Deepened Kenya’s capital markets through a successful public listing with a 336 percent subscription rate on the Nairobi Stock Exchange • Completion of the 60MW Sondu Miriu Hydro Power: a run-off the river plant with a 17km penstock tunnel commissioned • Olkaria II: 70MW commissioned • Commissioned Sang’oro Hydro power plant: 21.2MW • Upgraded Kiambere Hydro power station from 144MW to 168MW • Upgraded Kindaruma Hydro power station from 40MW to 72MW • Upgraded Tana Hydro power station from 14.4MW to 20MW • Commissioned Supervisory Control and Data Acquisition (SCADA) phase one system for all major hydro power plants • Decommissioned Nairobi south in a bid to reduce on thermal generation • Rehabilitation of MESCO hydro power plant
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he Sdema Group is an international homeland security solutions partnership helping to create secure environments around the world for governments and businesses to thrive. We specialise in the unique niche of threat-based security concept design and master planning and carry through with project management, both large and small. The Company has been supporting government clients in Africa for more than 10 years in the fields of critical infrastructure protection, cyber security, aviation security and the establishment and training of dignitary protection teams. We seek to increase our relationship with governments and business on the continent and work together to forge the path to a more secure future. The Company deeply values the relationship between the State of Israel and the African continent and we are honoured to be part of a decades-long commitment that started when Israel’s first Prime Minister David Ben Gurion declared, “The principles of mutual assistance and equality should also constitute the basis for international relations between people,” and sent his Foreign Minister Golda Meir to visit Africa. We are interested in bringing our physical and cyber security experience and leadership to the public and private sectors in all fields of homeland security. From planning the security of a single facility to training the trainers and from implementing organisation-wide security policy to delivering tailored loss prevention programmes, the Company’s niche specialty teams look forward to serving you.
T +972-3-9009444
www.sdemagroup.com
INTEGRATING PEOPLE, PROCEDURES, AND TECHNOLOGY The Sdema Group is an international homeland security solutions partnership helping to create secure environments around the world for governments and businesses to thrive. We specialize in the unique niche of threat-based security concept design and master planning and carry through with project management, both large and small.
Industries we serve:
We believe that the most effective way to confront threats ranging from domestic crime to the shifting modus operandi of the global terrorist network is to strike the optimal balance between the three pillars of homeland security—people, procedures and technology. We see ourselves as security architects and employ a proven methodology of security planning to design and deliver this critical integration.
Critical Infrastructure Protection
Our team, former Israel Security Agency leaders in national security, counterterrorism and intelligence, have worked in the most challenging security environments around the world and put this experience to work for the government and corporate clients that we are privileged to serve.
Cyber Security
Facilities Security (Government ministries, corporate HQs, banks, hospitality industry & educational campuses)
Aviation Security Mass Transit Security
Our services include: integrative security surveys, threat and vulnerability assessments, master security planning, technology selection and product assimilation, advanced training for all levels of security personnel, security director placement and coaching, crafting best practices and procedures, audit and control, red team testing and employee vetting.
Dignitary & Executive Protection Employee Recruitment & Integrity Testing
Sdema Group, Ltd. 2 Weizmann Street, 10th Floor Tel Aviv, Israel. Tel: +972-3-9009444 Fax: +972-3-9032288 www.sdemagroup.com
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GEOTHERMAL CONSULTANCY Supporting Geothermal Development in East Africa A group of four Icelandic consulting firms, Mannvit, ÍSOR, Vatnaskil and Verkís, have joined forces in a consortium aimed at serving the growing geothermal market in East Africa. Specialising in geothermal resource development and management, the consortium has provided consulting services to several geothermal developers and financial institutions in the region, including KenGen.
A market leader in the provision of renewable energy
Fully renewable company
As part of the Company’s renewable strategy, its next pipeline project is 100 percent renewable, with the target aspiration of 2,500MW by 2025; comprised of 1,400MW from the current pipeline projects and 1,100 from new projects. “In order to deliver the new capacity, we will need to raise US$9.5 billion,” adds Mugo. “In order to achieve this, we will draw on a mixture of financial approaches - mainly loans from the Government including concessionary financing - while in the future we will explore options including public private partnerships and asset-backed securities to fund our capital expenditure needs. “The main basis for our growth which has allowed us to be so ambitious is our G2G transformation strategy. It has been the guiding philosophy which we intend to continue employing to retain our status as a market leader in the provision of renewable energy in the
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Icelandic background, international experience Iceland has utilised its geothermal resources for more than a century, initially for space heating and later for electric power generation. The geothermal expertise of the consortium is derived from this longterm development, and consulting services have in recent decades been expanded from Iceland onto the global geothermal market. Experience in East Africa ranges from exploration and reservoir assessment to engineering services and training. The United Nations Geothermal Training Programme (UNU-GTP) has operated in Iceland since 1979, with consortium firms providing essential training and support. Many geothermal professionals from East Africa, KenGen included, have attended this programme. A key to East Africa’s economic growth Through KenGen and other developers, Kenya has taken large steps towards energy self-sufficiency by developing its geothermal resources. Harnessing renewable local power at a reasonable cost is key to economic growth in Eastern Africa. Iceland is a prime example of how geothermal development helped transform a relatively poor country, dependent on imported coal, into a country with a high standard of living and a self-sufficient energy supply. Contact us at geothermalconsortium@mannvit.is for more information.
Experienced Geothermal Consultancy
Experienced Geothermal Consultancy Geothermal Energy Consulting from Exploration to Operations
Iceland is a leading country in the harnessing of geothermal resources. Iceland‘s most experienced geothermal energy consultants are working together in a consortium in East Africa, offering consulting services to developers and institutions. With over half a century of experience in bringing geothermal power projects online around the world, our customers are in reliable hands. Services include exploration and resource assessment, reservoir analysis, numerical reservoir modelling, drilling consulting, feasibility studies, final design, construction management and operational training.
www.mannvit.com I www.isor.is I www.vatnaskil.is I www.verkis.com
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NORTH STREET COOLING TOWERS PVT. LTD. Creating Value through Excellence A pioneer in the cooling tower industry, North Street Cooling Towers Pvt Ltd (NSCTPL) has strived for innovation in cooling solutions for its customers, completing numerous projects in both domestic and international markets. The Company has a facility with state-ofthe-art machines for fabrication, timber treatment and FRP, plus the design and manufacture of critical components like gear boxes, fan assemblies and cylinders, drive shafts and components for water distribution. The Company has overseas operations in many different territories including Africa, Australia, Canada, Thailand and Dubai. Composite Carbon Fiber Drive shafts manufactured solely by North Street in India is a crowning achievement. The Company has also extended its expertise in ACC (Air Cooled Condensers) to further the value proposition offered to their customers.
High ambitions for both KenGen, and Kenya as a whole
East Africa region.” It is very important for both KenGen as a Company and Kenya as a whole that these targets and innovations are continuously being achieved and opening up the market to encourage competitors.
Separation of assets
Planning is pivotal to the success of a company when it comes to managing its supply chain and general procurement, particularly for the sourcing of goods both nationally and internationally while complying with the laws of procurement and other directives from the regulatory bodies. “This division of the Company ensures equitability in bidding and contracting and also monitors expenditures versus our targets, ensuring that prices are within market values,” Mugo describes. “The inventory is well managed to ensure accountability through codifications, separation of assets and compliance with the environmental
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The inventory is well managed to ensure accountability through codifications, separation of assets and compliance with the environmental laws of disposal of scrap to ensure minimal risks to the environment
The partnership between the Company and Kenya Electricity Generating Company (KenGen) has helped both in continuing their innovation and research. The Company had to work out a design of a cooling tower that could be fitted Flange to Flange with their outlet pipe. The team of designers and engineers from NSCTPL worked with industrialists at KenGen’s 5.5 MW Olkaria-1 Geothermal Power Plant and successfully completed the project of 1,500 cum/hr FRP Pultruded Counter Flow CT with ease and the commissioning of a cooling tower was completed within three months. Our partnership with KenGen holds true to a famous quote: “Great things in business are never done by one person. They are done by a team of people.”
www.nsctpl.com www.carbon-light.com
FRP Pultruded Counter Flow Cooling Tower For 5.5 MW Geo Thermal Power Plant, Olkaria-1, Kenya
Partner with North Street Cooling Towers for Sustainable Growth North Street Cooling Towers offers in house R&D, design and manufacturing of cooling towers in (RCC / TIMBER / PULTRUDED FRP / FRP) and its associated components.
A complete range of cooling tower spares and components like gearboxes, gear match set, drive shafts, fills, fan nozzles, flow control valves and support grids etc. available to ensure year-round performance.
The Company also offers design and manufacture of composite carbon fiber drives shafts and rollers.
Customer centric approach offering pre and post sale service and support for all products.
North Street Cooling Towers Pvt. Ltd. C-14, Sector-22, Meerut Road Industrial Area, Ghaziabad 201003 (U.P.), India E: sales@nsctpl.in | T: 0091 120 2788571-72 | www.nsctpl.com | www.carbon-light.com
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GULF ENERGY
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ulf Energy aims to provide energy solutions to an advancing energy sector in the region. Our registered offices and headquarters are in Nairobi, Kenya. Among the top oil marketing companies engaged in petroleum products supply in Kenya, we source, charter, export, retail and store quality petroleum products from all over the world to various destinations in East Africa. Our business units include: supply and trading, shipping, sale to commercial and industrial establishments, export and transit markets, aviation (into-plane) refuelling, lubricants, retail service operations, terminal and distribution service, and power generation.
www.gulfenergy.co.ke Channeling the spirit of ‘Buy Kenya, Build Kenya’
laws of disposal of scrap to ensure minimal risks to the environment.” Perfectly matched with the spirit of the Company, the supply chain division is focusing on utilising local materials that have been produced in Kenya, in the spirit of ‘Buy Kenya Build Kenya’. It is hoped that this will encourage many entrepreneurs in Kenya to start up manufacturing enterprises that will have a positive effect on the economy.
Maintaining market leadership
Constant monitoring of both the economy and the industry has been pivotal for KenGen to retain its market leadership position, paying particular attention to the growing demand curve currently. “At present we have 70 percent of the installed capacity, while supplying up to 80 percent of the national requirements,” notes Mugo. “Our vision is to remain the market leader in the provision of reliable energy in the East African region. It is fair to say that the
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PACKAGE INSURANCE BROKERS
Our vision is to remain the market leader in the provision of reliable energy in the East African region
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ackage Insurance Brokers has more than 20 years of experience in providing comprehensive solutions and service in the insurance industry in Kenya and in the region. Our expertise in both corporate and retail insurance markets lies in underwriting, claims management, and product training. Our vibrant team drives our excellent reputation, and we pride ourselves in our legacy of partnership, innovation, professionalism and superior customer service. When it comes to doing business across Africa, we are here to ensure your peace at mind with coverage for both you and your goods.
www.packageins.co.ke
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Power in Partnership
We believe in the power to grow Africa from within. Our partnership with KenGen is a testament to our commitment to prosperity, in Kenya and beyond. Talk to us today to find out how we can build success together.
www.packageins.co.ke info@packageins.co.ke
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VOITH
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he German technology Group Voith supports many African countries in making the most of their hydropower potential with a wide range of small and large projects. Even so, less than 10 percent of Africa’s remarkable hydropower generation capacity has been exploited to date. Together with its customers, Voith is addressing this opportunity through: new state-of-the-art plants; the repair, maintenance and servicing of existing hydropower plants; and the transfer of knowledge to support African countries in running their hydropower facilities self-sufficiently. Voith’s long-time experience in Africa leads to successful partnerships with companies like the Kenya Electricity Generating Company (KenGen).
Powerful development is gearing KenGen up for a very exciting few years to come
backbone of our successful business model is a committed, competent and skilled workforce that is able to both deliver new power projects on time and within budget, while operating and maintaining existing assets to ensure sustained generation for the Company.” In order to achieve the predicted growth aspirations, the Company will need to operate in three distinct structures, separate from its present arrangement. Mugo explains: “We would need to alter our operations to work under a structure of KenGen A, KenGen B and KenGen C, and with these business model modifications and organisational changes; we will be able to adapt our G2G Horizon strategy to make our target attainable.” These changes will inevitably allow for improved returns of current plants, profitability of future assets, improved tariff regulation, pursuance of new financing approaches and established new structures to expand upon; all of which make for a very exciting few years for the Company.
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It is fair to say that the backbone of our successful business model is a committed, competent and skilled workforce that is able to both deliver new power projects, while operating and maintaining existing assets...
www.voith.com
SUDI CHEMICAL INDUSTRIES
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udi Chemical Industries is the leading manufacturer of drilling fluids in the East African region. The Company provides expert solutions for any form of drilling applications from shallow depth - for example, for placing blast charges in mining operations - to deep well geothermal and oilfield wells. We are proud to be associated with the Kenya Electricity Generating Company Ltd (KENGEN). We have partnered with them as their main suppliers of drilling fluids since the 1980s. T +254 (0)20 6554742 / 6554294 (0)719554743 (0)733554741 E info@saudichem.com saudichem@gmail.com
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Energy for Africa. Hydropower Projects Voith is one of the world‘s leading suppliers of hydroelectric equipment, technology and services. As a full-line supplier, our portfolio of products covers the entire life cycle of new and existing large and small hydropower plants. In Africa, Voith has a long-time experience: We have been successfully executing hydropower projects since the 1940ies. www.voith.com A Voith and Siemens Company
Tel: +254 (0)20 6554742 / 6554294 (0)719554743 / (0)733554741 Email: info@sudichem.com / sudichem@gmail.com
Alongside KenGen, we are also current suppliers of drilling fluids to Geothermal Development Company Ltd (GDC), Greatwall Drilling Company (GWDC) and China Petroleum Technology and Development Corporation (CPTDC).
Manufacturers & Suppliers of:
Industrial & household detergents High quality drilling fluids Aluminium cans Aerosols filling
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Renowned for on-time project delivery and renewable energy expansion drive
Backbone of success
KenGen is the first Company to pioneer geothermal wellhead condensing technology
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Supporting KenGen’s success is a workforce it has strived for years to build, following a culture informed by the values of team spirit, integrity, professionalism and, of course, a safety culture. “We are renowned for our ontime project delivery, focus on our renewable energy expansion drive, innovative nature, efficiency, and prudent management of our resources,” continues Mugo. “We are the largest geothermal producer in Africa and the eighth largest in the world, with green energy accounting for 88 percent of both ours and the national generation portfolio. KenGen is the first Company to pioneer the geothermal wellhead condensing technology, which entails the use of small power units fitted to the wells in use. Generation can then take place in as little as nine months from the well being tested.
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Excellent service of the highest quality
We are a leading Law Firm in Kenya, providing a range of legal services across various industries, and proud to be associated with KenGen. 4th Floor KeMU Towers, University Way P. O. Box 10176-00100 Nairobi Tel: +254 (20) 2250544 Email: mail@ktk.co.ke www.ktk.co.ke
This technology has aided the recovery in investment in the drilling of wells, which would perhaps now be lying dormant pending the construction of a main power plant. Innovative technologies such as these are the backbone of what is setting KenGen apart in the industry.
Preferred supplier of power
Moving forward, KenGen will need to continuously position itself as the market leader in the industry and a preferred supplier of choice for Kenya. “Our strategic intent is to increase our capacity by 720MW by 2020 in order to remain relevant in the market,” Mugo continues. “We will continue renewable energy-backed expansion strategies while we look to consolidate our diversification strategy in consultancy services, geothermal steam sales, commercial drilling and the development of carbon assets.” The Company’s 10-year
We are the largest geothermal producer in Africa and the eighth largest in the world, with green energy accounting for 88 percent of both ours and the national generation portfolio
transformation strategy of evolving from good to great through purely sustainable usage will remain KenGen’s guiding philosophy. With the goal to stabilise and create sustainable power supply for Kenya, this will constantly be monitored and revamped as the Company grows and projects open up. Mugo concludes: “We developed the G2G strategy in 2008 as a response to changes in our environment; it sets out a clear vision to remain the market leader in the provision of reliable, safe, high quality, sustainable and competitively priced energy in the region.” G2G symbolises everything the Company is built upon; the dual objective of combining its strategy and philosophy while also incorporating corporate social responsibility. Not only will G2G continue to move KenGen from a good to great Company, but also create value in the Company for its stakeholders and future generations in the country.
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Kenya Electricity Generating Company Ltd, Stima Plaza, Kolobot Road, Parklands, P.O Box 47936-00100 GPO, Nairobi, Kenya Tel: 00254 711 036000/00254 7321 16000/00254 20 3666 000 pr@kengen.co.ke
www.kengen.co.ke
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