Geothermal power to reduce cost of living

What you need to know:

  • Power will also become more readily available to Kenyans, boosting the government’s ambition to increase access to electric power as a way of putting the country firmly on the path to energy security.
  • Currently, Kenya’s electricity generation capacity stands at 2,154MW. KenGen’s share is at 1,575MW or 75 per cent of the national power output, with geothermal being the leading source, at 51 per cent.
  • Geothermal power, which harnesses heat from the earth’s crust, is reliable, competitively priced, and puts KenGen at the forefront of helping to realise the 5,000MW+ initiative.

Power generation in Kenya has changed dramatically with the recent commissioning of the 280MW geothermal plant in Olkaria, Naivasha.

The cost of electricity has been falling over the past six months and is set to stabilise following the commissioning of the 140MW Olkaria I Units 4 and 5, the last phase of the ambitious project.

Every month, the plant contributes over 185 million kWh of renewable and stable electricity to the national grid. This is because geothermal energy generation does not fluctuate with changing weather.

We hope that with reduced energy charges, the cost of living will come down as manufacturers and industrialists pass on the benefits of cheaper production to consumers.

Power will also become more readily available to Kenyans, boosting the government’s ambition to increase access to electric power as a way of putting the country firmly on the path to energy security.

Kenya’s gains in geothermal exploration and exploitation are not only important for the country but also for the Eastern Africa region. Already, KenGen is sharing with our brothers in the region skills, expertise, and experiences as they also seek to exploit the geothermal resource that is abundant in the Eastern Africa Rift.

2,154MW

The countries that have benefited from Kenya’s expertise include Rwanda, Ethiopia, Djibouti, and Sudan.

Currently, Kenya’s electricity generation capacity stands at 2,154MW. KenGen’s share is at 1,575MW or 75 per cent of the national power output, with geothermal being the leading source, at 51 per cent.

The 280MW plant is generating 2.2 billion units of cheap electricity every year, equivalent to a quarter of the current annual demand. The increased quantity of geothermal power has led to reduced dependence on electricity produced using heavy fuel oil.

Geothermal is at the core of KenGen’s strategy to produce efficient, reliable, and affordable power to meet rising demand, estimated at 8 per cent annually, and make Kenya an attractive investment destination.

Geothermal power, which harnesses heat from the earth’s crust, is reliable, competitively priced, and puts KenGen at the forefront of helping to realise the 5,000MW+ initiative.

KenGen will contribute 844MW, the bulk of which (700MW), will be derived from geothermal sources. Beyond the 280MW, which took 30 months to complete since the groundbreaking ceremony in July 2012, the company is drilling wells to supply steam for an additional more than 400MW that it plans to develop in the next two to four years in Olkaria.

The exploration at the Olkaria geothermal field dates back to the 1950s, when the first well was drilled. However, it was not until 30 years later that the 15MW plant was commissioned in 1981 at Olkaria I.

It took another 20 years for the 70MW Olkaria II power plant to come on line. In the past decade, KenGen’s geothermal capacity has increased four-fold to the current level of 470MW.

This is expected to further increase as we move to the next phase of geothermal development, with the possibility of launching Olkaria V by the end of this year.

Geothermal power means a lower cost of living for Kenyans and improved investment opportunities, including industrialisation.

Mr Mugo is the CEO of KenGen. [email protected].