KenGen bets big on green energy to boost revenues

Power generator, KenGen will continue to invest in green energy projects to mitigate the effects of climate change.

Speaking after leading shareholders on a tour of Ngong Wind Farm, the company Managing Director Eng. Albert Mugo said the largest wind farm in Kenya was constructed in a bid to boost the renewable sources’ contributions to the national grid.

“Ngong’ Power Station is the only wind farm that is connected to the national grid in Kenya. The construction of the wind power farm was expanded as a way of scaling up energy sources as the country looks to green energy”, Eng. Mugo told the shareholders, adding: “It is our firm belief that the current focus on environmentally friendly technologies to generate energy for industrial and domestic use will improve its affordability and also increase energy security by reducing reliance on oil-based sources”.

Speaking at the same function, KenGen chairman Mr Joshua Choge thanked shareholders for participating in the Rights Issue which realised Sh 26.4 billion, the largest ever on the Nairobi Securities Exchange.

“Your participation in the Rights Issue as shareholders will not only grow the company but also contribute to the economy by ensuring availability of energy to the nation. It will also give you a chance to reap more from the brighter future prospects of the company which will come as a result of revenue diversification,” said Mr Choge.

In May, the company launched its Rights Issue to raise Sh 28.8 billion to fund its heavy infrastructure developments. The Rights Issue achieved a 92 per cent subscription rate, despite bearish market conditions at the bourse.

“We have lived up to our ambition of diversifying our revenue streams to the next generation of industrial progress. We have done this in tandem with the Kenya Vision 2030, which has put in place an ambitious plan to increase energy supply through heavy infrastructure investments and exploration of natural resources,” Mr Choge added.

Among the projects undertaken in last two years include the development of the Single Largest Geothermal Project in the World (Olkaria 280 MW). The company also championed the development of Geothermal Wellhead Technology. In addition, KenGen has developed a natural geothermal spa and is the pioneer company in the country to earn carbon asset funds under the Clean Development Mechanism (CDM).

The purpose of the tour was to get the shareholders’ buy-in and share their concerns ahead of the AGM slated for November 30.  Besides, the annual tours which give shareholders an opportunity to tour KenGen’s plants, places them in a better position to evaluate the company’s performance and propose future investments.