US forum to focus on Kenya’s steam energy

Kenya’s geothermal energy potential will be on focus next week in a global energy meeting in the US.

According to a statement from the Geothermal Energy Association, organisers of the event, panelists from Kenya and Ethiopia are expected to talk on opportunities in East Africa.

“The forum will showcase geothermal projects, trends and government policies around the world and how to address and reduce risk,” the statement said.

Geothermal Development Company boss Silas Simiyu and Stanley Kamau, director of Public-Private Partnership unit within the Treasury will speak in the forum.

A total of 34 countries, representing about a half of the world’s geothermal projects are expected to participate.

Investment in geothermal increased to $3.2 billion in 2013, notes Geothermal Energy Association. The amount is likely to jump on completion of ongoing projects which are expected to add 10,000 megawatts of power at a combined investment of $45 billion globally.

Kenya’s geothermal potential is estimated at 10,000 megawatts.

However, the resource has remained underutilised, seeing the country rely on hydro whose reliability is challenged during dry spells.

In a drive to lower energy costs, the government has committed to shift from hydro to geothermal, through an ambitious plan to add 5,000 megawatts of electricity to the grid by 2016.

The Kenya Electricity Generating Company (KenGen) is currently undertaking a project to generate 280 megawatts electricity from Olkaria field. The project is scheduled to complete this year, with half of this capacity set to be commissioned this month.

KenGen has also announced plans to expand this project to 560 megawatts, once it secures funds through its maiden rights issue in the second half of this year.

The African Development Bank (AfDB) has said that it will increase lending to geothermal power generation in the continent building on Kenya’s success.

“Building on the success met in Kenya with the Menengai project, the AfDB is focusing on developing the geothermal potential in Tanzania. It will try to replicate the model used in Kenya,” said the bank.

The Kenyan model involves concessional financing for the early stage and high-risk activities that are mainly related to drilling which is done through a special purpose company such as the Kenya Geothermal Development Company.