Aggreko plc last week announced that, following a public tender, it has signed a contract with the Kenya Electricity Generating Company Ltd to supply all 140 MW called for in the tender. This will involve the installation of an additional 80 MW at Aggreko’s existing site at Embakasi, outside Nairobi and 60 MW at a new site near Naivasha, Kenya. The minimum period of the contract is 12 months, and the value of the award is estimated to be over $30 million.
“We are delighted to have been selected by KenGen to provide them with this additional temporary power, which is a testament to the good experience they have had with Aggreko as a supplier over the last few years,” said Rupert Soames, Aggreko CEO. “A 140 MW permanent power plant would take several years to finance, build and commission, but Aggreko can deliver this capacity in a matter of weeks, and this flexibility means that customers can respond quickly to maintain power supplies.”
Kenya’s requirement for additional power is a result of low rainfall in parts of the country. The drought has resulted in reduced output from the country’s hydro electric power stations leading to power shortages, which are having a damaging effect on the country’s economy. A critical consideration in the tender evaluation process was speed of delivery, and Aggreko has agreed to supply the first tranche of 40 MW within five weeks of the contract becoming effective and the balance a few weeks later.
Aggreko is already supplying KenGen with 150 MW of temporary power from sites at Embakasi and Eldoret and once the additional capacity is installed Aggreko will be able to dispatch 290 MW to the national grid. Aggreko operates a training centre and engine refurbishment facility at Embakasi, employing 137 Kenyans.
Aggreko currently supplies around 1,000 MW of temporary power in 20 African countries.
Houston-based Aggreko North America is No. 10 on the RER 100.