KenGen Awards Mitsubishi Corporation Contract to Construct Olkaria V Geothermal Plant

Mitsubishi Corporation (MC), together with Mitsubishi Hitachi Power Systems Ltd. (MHPS) and H Young & Co. (E.A.) Ltd. (HY), has been awarded a full turnkey contract by Kenya Electricity Generating Company Ltd. for the construction of a geothermal power plant (Olkaria V) in Kenya.

The installment will be the fifth in the series of geothermal power plants being built in the Olkaria area of Kenya. MC will be responsible for supplying the plant’s main equipment, while MHPS will handle in-land transportation and installation.

HY, a Kenya-based engineering and construction company, will supply the remaining components needed for plant construction, as well as conduct civil engineering and installation works. The construction is scheduled for completion in 2019.

The Olkaria V project will oversee the construction of a geothermal plant with the capacity to supply 140 MW of power. It will be financed by an Official Development Assistance (ODA) loan provided by the Japan International Cooperation Agency (JICA).

MC and MHPS have been working together to build geothermal power plants in Kenya since the 1980s(1). Once Olkaria V is completed, these projects combined are expected to supply 290 MW of power in Kenya, more than 10% of the country’s energy overall.

Furthermore, given projections of a sharp increase in energy demand, the Kenya Vision 2030 national development policy includes targets for expanding energy generation capacity to 18,000 MW by 2030. This project is therefore well positioned to help achieve that target while at the same time contribute to reducing greenhouse gas emissions and preserving the environment.

By investing in this sector, indispensable for stimulating industrial development and improving standards of living, MC aims to continue contributing to economic growth and environmental sustainability in Kenya, while at the same time playing a role in increasing the export of high-quality infrastructure from Japan.