Kenya Energy Announcement of $1.8 billion Geothermal expansion for electricity

The Kenya Electricity Generating Company (KenGen) plans to drill 42 new geothermal wells to increase the level of clean energy in the national grid by 200 megawatts. 

The plan calls for the wells to be built in the Olkaria geothermal field, considered the largest in Africa, over a 5-year period. According to KenGen, the project will include production, monitoring, and reinjecting of wells that will connect to existing and new geothermal power plants.  Kenya currently produces more than 90% of its energy production from renewable sources. The announced geothermal expansion is in line with the country’s vision of attaining 100% renewable energy by 2030. 

The estimated cost for the new wells is $1.8 billion.  Due to the large capital required to develop the expansion, KenGen expects to obtain funding from partners such as the World Bank, European Investment Bank, African Development Bank, and the Japan International Cooperation Agency.  Kenya partially lifted its moratorium on new power purchase agreements (PPA) for new geothermal production on January —, opening the door for US geothermal developers to explore the market. 

With a market share of around 60% and an installed capacity of 1,725MW, KenGen is the largest energy producer in East Africa. The company’s installed generation capacity mix includes Hydro 826 MW (47.9%), Geothermal 754 MW (43.7%), Thermal 120 MW (7%), and Wind 25.5 (0.71%). 

Opportunities for U.S. firms include building geothermal plants and providing drilling materials such as detergents, cementing materials, casings, drilling bits and others.  KenGen being a public entity will procure these items via open competitive bidding.  Look out for information on their website https://www.kengen.co.ke