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KenGen has began the process of raising funds worth US$4.2 billion to facilitate their decade-long energy plan involving pumping an extra 1.5 GW into the Kenya national grid. Various participants have already committed to funding a 300 MW geothermal project as part of the multi-billion project. The German government has also promised to support Kenya in expertise through exploiting solar and geothermal energy in the country. The German Climate and economy minister Dr Robert Habeck recently spoke at the German-African Business Summit of investors during a tour of Olkaria in Naivasha. The area is geothermal-rich, located 90 kilometres west of the country’s capital city. The tour of Olkaria brought about conversations surrounding potential investment into geothermal projects.
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Germany’s collaboration with Kenya
During an address to the press, the Climate and economy minister praised Kenya over its commitment to the production of clean green energy amid the climate change crisis. He also challenged the government not to neglect investment into more solar and geothermal project so as to meet the rising demand for electricity. “Germany is committed to supporting this country in expertise in the production of green energy. This country has very high potential in geothermal and solar. Some members of the delegation are involved in the energy sector. We are keen to learn how we can phase out thermal plants which continue to emit emissions.”
“It offers immense opportunities for German companies, especially in future-oriented sectors such as the digital economy and the expansion of renewable energy generation, and transition technologies,” he added.
Stats on Geothermal Energy in Kenya
Out of the 1.5 GW of energy aimed to be produced over the next ten years, 800 MW is expected to come from geothermal. “The geothermal energy potential in Kenya stands at over 10,000 MW (10 GW) and we shall continue to tap into this as electricity demand continues to rise,” said Peter Njenga, KenGen CEO. He also pointed out that the demand for electricity in the country is on the rise. This has brought about the need to increase production as more investors seek opportunities in the country.
In 2023, the German chancellor, Olaf Scholz visited a geothermal power plant in Kenya and commented that “Germany should take Kenya as an inspiration to intensify its own geothermal power activities.”
Other Geothermal projects in Kenya
In October this year, construction broke ground on a 35 MW geothermal plant in Menengai, Nakuru. The project, undertaken by OrPower Twenty-Two (OrPower 22) will be completed by mid-2026. It is a part of a Build-Own-Operate scheme and is owned by Kaishan Group, a Chinese-based company. At a cost of US$90 million, the project will complete the first phase of development of the 105-MW installed capacity on the Menengai geothermal field. A second geothermal power plant has already began construction by Globeleq. Furthermore, the first power plant started operations in 2023 under Sosian. Exploration, drilling, and construction of steam gathering facilities at the Menengai steam field was managed by state-owned GDC, who will also be selling the steam to the three Independent Power Producers (IPPs). |
