Kenya Renewables Report Q2 2016
BMI View: Kenya will emerge as the second largest non-hydro renewables market in SSA over the course of the decade, as the government's ongoing commitment to the sector and the country's significant geothermal potential, will drive growth. In terms of contribution to the electricity mix, non-hydro renewables will contribute over 50% to the total, the highest of any country in SSA.
Latest Updates And Structural Trends
It was announced in February 2016, that Ormat Technologies has increased capacity at its Olkaria III geothermal power complex, by opening the 29MW fourth power plant of the complex. The fourth plant has raised total capacity at the complex to 139MW. Furthermore, a deal was also signed with KPLC in October 2015 to expand capacity of Plant 4 to 100MW.
The 60.8MW Kinangop wind project in Nyandarua County was shelved in February 2016. The USD147.4mn project was scheduled to be completed by mid-2015, but the delay caused by the local protests has reportedly led to the depletion of project funds.
In January 2016, it was announced that China Machinery Engineering Corporation (CMEC) secured a turnkey contract, worth USD221mn, from Kipeto Energy to construct a 102MW wind park in Kenya.
Village-level solar-powered microgrids will support electrification efforts in Kenya - and the wider SSA region, as convenience and the growing competitiveness of off-grid systems will help the region overcome the issues associated with centralised power grids.
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