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Home » News » KenGen offers game-changing power rates to fuel smart park

KenGen offers game-changing power rates to fuel smart park

Last updated: September 2, 2023 12:02 pm
3 years ago
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Energy and Petroleum CS Davis Chirchir, has unveiled a groundbreaking initiative at the Olkaria Smart Park that promises to revolutionize the Kenyan industrial landscape.

Kenya Generating Company Limited (KenGen) is set to provide industries with a remarkable opportunity to purchase power at just 7 cents USD per unit, a rate three times lower than what Kenya Power currently offers.

The 4,000-acre green park located in the Olkaria region of Naivasha is primed to become a hub for sustainable economic development, thanks to abundant and affordable geothermal power supplied by KenGen.

Chirchir highlighted that this smart city industrial park will harness 100 percent clean geothermal power, promoting competitiveness and environmental responsibility.

Olkaria’s strategic location, well-developed access roads, and proximity to the Standard Gauge Railway (SGR) make it an ideal destination for industries seeking to access its 1,000MW of geothermal power.

The government has also streamlined legal procedures to expedite development within this green park, with a masterplan already in place for the initial 1,000 acres.

Chirchir emphasized Kenya’s commitment to transitioning to cleaner energy sources, with the goal of achieving 100 percent clean energy by 2030.

To support this ambition, the government is investing in additional geothermal wells, including those in Eburru forest, Menengai in Nakuru, and Baringo.

Ecocloud and the Konza Technopolis Development Authority have taken the lead as pioneering investors, breaking ground on a 100 percent green-powered data center valued at USD 600 Million (Sh. 87.3B) within the Green Energy Park.

KenGen Board Chair, Julius Ogamba, detailed the park’s comprehensive plan, which includes industrial, commercial, and recreational facilities to be developed over a 20-year period, spanning from 2025 to 2045.

KenGen’s move to establish and expedite development at the smart industrial and green park is a welcome relief to investors who have previously faced power disruptions, resulting in significant financial losses.

This initiative aligns with Kenya’s broader strategy of developing Special Economic Zones, propelling the nation towards becoming an economic powerhouse in the region.

The government’s substantial investments in infrastructure and fiscal incentives have created an attractive environment for investors in various zones, including Naivasha, Mombasa, Kisumu, Machakos, Busia, Sagana, and Eldoret, further driving the country’s transformation towards a sustainable, carbon-free future.

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