In pursuit of increasing generation by 5 000MW by 2017, Kenya has invited bids for the construction of two geothermal generation plants with a combined capacity of 60MW, Reuters has reported.

The east African nation, which is endowed with vast geothermal energy resources,  needs to expand its generation capacity from about 1 700MW, in order to lower tariffs, cut costs of doing business and meet growing demand.

The state-run Geothermal Development Company (GDC) said in a notice in a local daily newspaper that the winning firms will be expected to finance the plants and to complete building them by the end of next year.  Independent power producers that are selected will be offered a power purchase agreement with distributor Kenya Power, GDC said.

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