Geothermal Development in Kenya: A Country Update - 2012

Abstract

Kenya is endowed with vast geothermal resource potential along the world Kenya Rift that transects the country from north to south. Exploration reveals that geothermal potential exceeds 10,000 MWe. Out of this potential, only 212.5 MWe and 18 MWt are being utilized for indirect and direct uses, respectively. Kenya Electricity Generating Company Ltd (KenGen) and Geothermal Development Company Ltd (GDC) have undertaken detailed surface studies of most of the prospects in the Kenya rift and active drilling is in progress in the Greater Olkaria field and at Menengai. The Least Cost Power Development Plan (2010-2030) prepared by the Government of Kenya indicates that geothermal plants have the lowest unit cost and therefore suitable for base load and thus, recommended for additional expansion. Electric power growth in Kenya currently stands at over 8% annually. In order to meet the anticipated growth in demand, The Kenya Government through the newly formed utility (GDC) has embarked on an ambitious geothermal generation expansion to install additional 5,000 MWe of electric power by the year 2030. The planned geothermal developments require huge capital investments and therefore GDC and KenGen are pursuing private sector involvement to finance the projects through PPP or BOT arrangements.