Kenya's Geothermal Policy

Abstract

The Geothermal Resources Act, 1982, establishes a series of steps which the geothermal developer must follow. These are the Minister of Energy must first Authorize all resource exploitation; (2) a "geothermal resources license" must be obtained from the Minister to enable the developer to drill, extract, and utilize the resources, and (3) if electricity is to be produced the developer must obtain a license under the Electric Power Act, or if commercial by-products are reclaimed, the geothermal resources license must include a lease consistent with the Mining Act. The Geothermal resources Regulations, 1990, set forth a model license which establishes the basis for negotiating the arrangements for obtaining the rights to the Kenyan Geothermal resources license. The Model License establishes a schedule of payment for land rental and royalty for the sale of steam or electricity. It provides for the forfeiture of the license in the event of either unauthorized inactivity on the part of the developer or breach of the geothermal laws, regulations or licence,