http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 18, 2011

International finance key to unlocking Kenya’s geothermal potential

Back
Hyundai|Kenya Electricity Generating Company|Tsusho Corporation|Africa|Japan|Kenya|South Korea|USD|Electricity|Energy Demand|Geothermal Energy Sources|Rift Valley|Eddy Njoroge|East Africa
hyundai|kenya-electricity-generating-company|tsusho-corporation|africa|japan|kenya|south-korea|usd|electricity|energy-demand|geothermal-energy-sources|rift-valley|eddy-njoroge|east-africa
© Reuse this



Kenya will be banking on international lenders to raise a staggering $17-billion to finance the exploitation of geothermal energy sources.

Kenya Electricity Generating Company (KenGen) MD Eddy Njoroge tells Engineering News in an interview that Kenya’s target of generating 5 000 MW from geothermal sources by 2030 will only be realised if international financiers partner with the East Africa nation.

“We want to explore cheaper sources of electricity. Geothermal power production is less costly compared with thermal, hydro or even wind. The challenge we have is raising the funds for constructing the geothermal plants and that is why we need international financiers to partner with us,” he says.

He adds that, in the next five years alone, KenGen will require at least $4.5-billion to implement projects with the capacity to generate 1 200 MW from geothermal wells in the Olkaria and Menengai fields in the Rift Valley.

KenGen has awarded the contract for the construction of a 280 MW geothermal project to a consortium of Tsusho Corporation, of Japan, and Hyundai Engineering & Construction, of South Korea.

Njoroge says with energy demand in Kenya expected to increase at an average of 8% a year, only massive investments in geothermal will end Kenya’s chronic power shortages.

“Geothermal will help us mitigate the inconveniencies of a power crisis precipitated by overreliance on hydro and will result in the cost of power coming down,” he says.

In recent months, Kenya, East Africa’s biggest economy, has witnessed an unprecedented surge in the cost of electricity owing to declining water levels in rivers generating electricity.

Electricity generation from hydro sources has been scaled down to 29% and generation from thermal has increased to 57%.

Njoroge says Kenya’s national installed capacity stands at 1 616 MW, with a peak demand of 1 200 MW, which is expected to surge to 15 000 MW by 2030.

“We anticipate this new capacity to be from geothermal, thermal, wind, coal and imports,” he states.

The 280 MW Olkaria geothermal power project will consist of two power plants of 140 MW. It is being funded by the Japan International Cooperation Agency, the French Development Agency, the European Investment Bank, the World Bank, the Germany Development Bank and KenGen.

The plant, which will be the biggest geothermal plant in Africa, will be built in 27 months and is expected to be fully operational in 2014.

KenGen is Kenya’s leading electricity generator, producing 75% of the electricity consumed in the country.

To date, Kenya has managed to exploit a mere 280 MW of geothermal power in Olkaria, although it has identified more than 14 high-potential sites along the Rift Valley with the capacity to generate between 7 000 MW and 10 000 MW.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Electricity News
HYDROPOWER POTENTIAL The 2 067 MW Laúca hydropower station will provide electricity for about 750 000 Angolans
Work on the 2 067 MW Laúca hydropower station, in Angola’s Kwanza riverbed, has started. The country aims to have the facility commissioned by the end of 2017, says Angolan State-owned power utility Empresa Nacional de Electricidade de Angola (ENE) international...
ANDREW GILDER The biofuels industry has the potential to be a key source of employment
The use of biofuels, as a renewable-energy source, presents the potential for numerous environmental, energy security and efficiency benefits to the South African economy, says law firm ENSafrica senior associate environmental law division senior associate Andrew...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks