Kenya Electricity Generating Company (KenGen) has announced plans to begin drilling works on the Ksh. 709.8 million ($6.5 million) Geothermal Power Project, starting June this year.

The drilling contract was awarded to KenGen three months ago following an agreement with the Djiboutian Office of Geothermal Energy Development (ODDEG).

The company is set to drill three geothermal wells at the Galla Le Koma geothermal field in the Lake Assal region. This is KenGen’s third geothermal drilling contract in Africa.

In October 2019, KenGen secured a Ksh. 5.8 Billion contract to drill 12 geothermal wells in Ethiopia. This contract, signed between the Kenyan firm and an independent power producer, includes installing a water supply system and equipment.

The firm has already completed the first drilling at the Tulu Moye site in Ethiopia while drilling the second well. Under this contract, KenGen will drill eight wells in the Ethiopian rift valley, each well costing about Ksh. 630 million.

In February 2019, KenGen secured a contract for consultancy services and drilling geothermal wells in Ethiopia. This contract is worth Ksh. 8,256,144,480 ($76,801,344).

The electricity generator has also formed partnerships with countries such as Ethiopia and Rwanda in renewable energy development. KenGen has been described as dependable and highly considered among the world’s top 10 geothermal energy producers with a geothermal installed capacity of 706 MW.

In Kenya, revenue from geothermal operations by KenGen continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V. This trajectory was also noted in revenue diversification from the on-going geothermal drilling project in Ethiopia.