Geothermal
The Kenya Electricity Generating Company (KenGen) has committed to adding an extra 1500MW of power sourced from green energy sources to the national grid in the next ten years. The remarkable milestone, once achieved, will position Kenya on the world map as a key producer and user of green energy, which will help in climate mitigation through reduced carbon emissions.
Currently, the country sources over 90 per cent of its power generating portfolio from green energy sources of geothermal, wind, solar and hydro with an output of 1726MW. This has positioned Kenya at the top of the map in the African continent in green energy production and is ranked position seven in the world in green energy production thanks to the government’s commitment to transition to 100 per cent use of green energy by the year 2030.
Within the next decade, KenGen seeks to Marshall more than USD 4.3B (est. Sh556.8B) from its key funding partners to implement the now-launched strategy where it seeks to add an extra 1500MW of power from green energy sources with 800MW sourced from geothermal. In addition, the company said the achievement would be realised in partnership with Geothermal Development Corporation (GDC) in exploring new sources of geothermal to replace old ones with Kenya estimates to sit on 10,000 MW of geothermal potential.
Speaking during the launch of the strategy in Olkaria, Naivasha, Energy and Petroleum Cabinet Secretary Opiyo Wandayi lauded KenGen’s efforts in tapping green energy, which he noted is key to driving the country’s economic and social development. Wandayi said the extra 1500MW of power will be sourced from the expansion and development of Olkaria six and seven power plants, rehabilitation of decades-old Olkaria one plant and expansion of solar and wind projects across the country.
Already, the ongoing rehabilitation of the Olkaria One power plant in Naivasha is expected to boost its generating capacity from the current 45MW to 63MW, with the Muhoroni gas power plant expected to add an extra 60MW to power western Kenya industrial sectors and households. At this time, KenGen has already awarded the tender to a Chinese company to undertake the rehabilitation works at the Olkaria One power plant, which is expected to be completed by the end of the year 2026.
On the other hand, the government has also committed to revive the Muhoroni gas turbine plant to generate 60MW which is expected to curb frequent power blackouts due to systems overloads within the western Kenya region. The CS said the government will continue to support the sector with revamped policies to meet the growing demand of Kenyans seeking reliable and affordable power tariffs.
On his part, KenGen’s Managing Director Peter Njenga said currently, the company’s energy portfolio stands at 1726MW, including Geothermal 754WM, Wind 25MW, Thermal 120MW and Hydro sources 826.4MW Njenga said KenGen will invest USD 4.3B (est. sh. 556.8B) over the next ten years to add the extra 1500MW of green energy to the national grid as well as establish 500MW hours of storage to help stabilize power transmission and curb cost disruptions.
The MD added that the company is undertaking a diversification strategy by helping neighbouring countries of Zambia, Eswatini, Djibouti and Ethiopia in geothermal exploration. The diversification strategy, Njenga added, will add an extra USD 2B ( est. sh. 258B) to the company within the next ten years, which will boost its economic contribution to the government.
Njenga said that the company has already established a green energy park in excess of 740 acres within the Olkaria-rich geothermal valley, where investors will tap 100 per cent of their energy needs to power their industries. In addition, the MD said the company has already secured a USD One billion (est. Sh.129B) investment towards the advancement of a modern data centre by Microsoft that is set to revolutionize data storage for local and multinational companies in the new digital era.
These efforts, Njenga said, are geared towards assuring investors of a steady and affordable power supply, ensuring competitive power tariffs and lowering the cost of electricity for consumers. On his part, KenGen’s board Chair Frank Konuche said the strategy is in line with the company’s commitments to expand power generation to wind and solar sources, stabilize regional energy security through revamped partnerships and achieve carbon neutrality.
According to former company managing director and current CS for Tourism and Wildlife Rebecca Miano, the two state agencies will partner to explore opportunities for investment to drive conservation and attract tourists at the large swatch of land at Olkaria. This, Miano said, can be achieved by building eco-lodges that promote sustainable conservation efforts at the geothermal and forested rich area for both local and international tourists to promote tourism for economic growth.