A wind turbine complex on the Zhemo Mountain in the outskirts of Dali in China's southwestern province of Yunnan.The Kengen project in Meru is set to be second largest in Kenya after Turkana farm. Photo/AFP
What you need to know:
KenGen plans to set up a 100 megawatts (MW) wind farm in Meru
The project with a completion date of June 2016, is expected to be the second largest wind farm after the Turkana farm expected to generate 300MW
KenGen expects to boost wind power generation from its Ngong farm to 25.5MW by September next year from the current 5.1MW
Power generating company, KenGen plans to set up a 100 megawatts (MW) wind farm in Meru as it seeks to increase the proportion of renewable energy in its production mix.
The project with a completion date of June 2016, is expected to be the second largest wind farm after the Turkana farm expected to generate 300MW.
“The feasibility study is complete and plans are underway to begin development,” said KenGen’s acting managing director Mr Simon Ngure in the company’s recently released annual report.
The Nairobi-listed firm is diversifying to cheaper sources of power such as geothermal and wind in an effort to cut out the more expensive diesel generated energy.
KenGen expects to boost wind power generation from its Ngong farm to 25.5MW by September next year from the current 5.1MW.
“Construction has begun and 6.8MW will be commissioned in March 2014 and 13.6MW will be commissioned in September 2014,” said the company.
There are 12 sites being studied for wind power production, with the target to be raised to 630 MW in the next 40 months.
Next year, KenGen intends to spend up to Sh105 billion in capital expenditure as it pushes to increase power supply in the country.
Heavy infrastructural projects that require increased and consistent supply of power are coming to completion forcing the company to hasten energy generating plants.
The company has set in motion a plan to raise capital from its shareholders with an increase of its authorised shares giving it headroom for making a rights issue.
Capital injection will also give the company leeway to borrow more funds.
KenGen’s debts currently exceed its shareholders’ capital, which limits its borrowing capacity.
Last year, KenGen increased its debt position by Sh12 billion as it sought to execute capital-intensive projects in geothermal and hydro power production. The company spent Sh37 billion on capital projects last year.
KenGen is also considering entering into joint ventures with the private sector to realise its expansion plan.
KenGen plans to achieve a target production of 3,000MW by 2018, an ambitious level that will require significant funding from both internal and external sources.
The firm has already appointed Barclays Bank as its advisor to direct its future financial options.
All the power produced by KenGen is sold to Kenya Power which distributes it across the country. Last year, its power sales amounted to Sh15.7 billion.
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