Nov 26 2010
The government of Kenya has announced its plans to use geothermal as a major power source. The country intends to meet 50% of its energy requirement from geothermal sources by 2018. Currently Kenya relies on hydro power, which has become unpredictable due to erratic and scanty annual rainfall.
Kenya has large amount of untapped geothermal energy. The country has identified over 14 sites in the Rift Valley with capabilities to generate 7,000 to 10,000 MW power. Currently, the country is utilizing only 265 MW of geothermal power. The investors who want to enter into geothermal production are seeking the government’s support to sustain their losses when they encounter dry or non-productivity wells. Kiraitu Murungi, the Energy Minister of the country, has unveiled the plans of the government to the Germany Development Bank, and said that the government is in the process of setting up a risk mitigation fund. He added that the beneficiaries of the fund will be asked to bear 40% of the cost if they encounter a dry well. He added that such an arrangement is expected to invite more investors in the geothermal exploration and power plant development.
Eddy Njoroge, Managing Director of KenGen, said that an investment of over US$4.5 billion is required to generate 1 260 MW power from geothermal sources. He added that currently the country receives 54% of its power from hydro power sources, which is expected to go down to 28% by 2018 and the investment in geothermal energy will bring in 18% increase.