Updates from the Kenyan geothermal industry scene.
*Kenya: Cheap Power, Company Profits
In seeking to make power affordable to Kenyans who don’t have it, the government has proposed that Geothermal Development Company (GDC) charge only 2 US cents (Sh1.72) per kWh for power from its geothermal Olkaria IV plant. If it passes, the government is expected to subsidize the difference of the real cost of 3.5 US cents (Sh3.01) per kWh.
Meanwhile the Kenya Electricity Generating Company (KenGen) saw an 86% increase in profit after tax in its year-end results, from Sh2.8 billion in 2012 to Sh5.2 billion ending June 2013. Assets base, non-current liabilities and cash balances increased thanks to work on geothermal power projects. “The first unit of Olkaria IV 140 megawatts is expected to be commissioned in December and the second Unit by March 2014,” KenGen Managing Director Simon Ngure told press.