R/€ = 15.16Change: -0.03
R/$ = 13.35Change: -0.02
Au 1156.06 $/ozChange: -2.88
Pt 981.00 $/ozChange: 2.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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

International finance key to unlocking Kenya’s geothermal potential

© 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 (150 word limit)
Other Electricity News
The 5.8 MW Adams and 5.8 MW Bellatrix solar projects, in the Western Cape, have been selected under the Department of Energy’s (DoE’s) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), becoming the first projects under the programme to be...
It is “nonsensical” to compare South Africa’s nuclear ambitions with Germany’s mission to scrap nuclear in favour of renewable energy, according to the Nuclear Industry Association of South Africa (Niasa). German ambassador to SA Walter Lindner told delegates at the...
Airbus E-Fan
Airbus is working on using electricity as a means to power aircraft. This was highlighted on Friday by Airbus Defence and Space VP and Head of Disruptive Innovation Jan van Toor. He was talking at the Fifth Council for Scientific and Industrial Research Conference in...
Latest News
South African Airways (SAA) has enhanced its partnership with the airline’s in-flight duty-free concessionaire Tourvest Inflight Retail Services (TIRS), enabling Voyager members to earn miles when buying duty-free products and spend their miles when shopping for...
South Africa's new visa regulations are having an adverse impact on the country's tourism industry without proof that they are making any impact on child trafficking, according to Hussein Dabbas, International Air Traffic Association (Iata) regional vice-president...
The Council for Scientific and Industrial Research (CSIR) has developed a semi-autonomous solution for early pothole detection to potentially replace the often time-consuming expensive manual road inspection. Showcasing the Visual Surveying Platform (VSP), CSIR...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96