Kenya's power firm, the Kenya Power and Lighting Company, is seeking investors for three new power plants that will produce between 60 megawatts and 80 megawatts each, Xinhua reported.
The company has invited expressions of interest for the development of up to three 60 to 80 MW medium speed diesel power plants in Athi River, about 40 kilometres east of Nairobi or its environs.
"The additional generation capacity will also enable the retirement of the emergency power, 50 MW of which would have been retired by end of next month with the rest being retired in December this year," said a statement from KPLC.
The power firm said it wanted the new plants to be up and running during 2010. The plants would operate under a 20 to 25 year build, own and operate arrangement.
"The plants, which will become operational in 2010, are included in the long term least cost national power plan, and will be developed at a time of increased national electricity demand, which has risen considerably in the recent past as a result of improved economic performance, accelerated customer connection and enhanced rural electrification," the statement said.
According to the company, such plants have a short implementation lead time and will thus meet the immediate shortfall gap as other plants based on sources like coal, geothermal and wind are implemented.
The interconnected capacity is currently 1,331 MW against an effective capacity of 1,245 MW. The effective capacity comprises 692 MW hydropower, 163 MW geothermal and 390 MW thermal, which includes 146 MW of the emergency capacity.
The move comes just days after the ministry of energy announced plans to extend the tenure of independent power producers due to poor rains that have affected generation at the Seven Forks Dams, the country's main source of hydro- energy.
"However, in light of poor hydrological conditions at the Seven Forks dams, negotiations are in progress to extend the contract for the 50 MW to December, to avoid a shortage of electricity, with its attendant rationing, " it said.
The KPLC is the sole electricity transmitter in east Africa's biggest economy. Like other economies on the continent, Kenya needs massive investment in power generation to meet growing demand.
Most of Kenya's electricity is generated by hydropower dams and peak demand can outstrip supply.
The plants, to be powered by heavy fuel oil, will be based around the capital, Nairobi. The deadline for the submission of expressions of interest is June 30, the statement said.