Kenya requires $650 million for geothermal development
The implementation of geothermal power in Kenya will require investments of up to $650 million, so Minister for energy Mr Kiraitu Murungi, with the government having given $93 million and the rest having been pledged by development partners who include the African Development Bank, European Investment Bank, SREP (Climate Investment Fund) World Bank and AFD Bank.
Kenya news report that “the implementation of geothermal power in the country will require sh.56 billion, the Minister for energy Mr Kiraitu Murungi has disclosed.
He said the Government has given sh. 8 billion while the rest of the funds has been pledged by development partners who include the African Development Bank, European Investment Bank, SREP (Climate Investment Fund) World Bank and AFD Bank.
The Minister who was on a visit to the Menengai geothermal field on Friday said the Government expects 5,000MW of power to come from Geothermal.
He said electricity was at the core of the national development agenda as enumerated in vision 2030 during which the country’s electricity demand will increase to 15,000 MW.
He noted the Government was giving geothermal and wind power projects first priority since the projects were prone to climate change and disclosed that wind power generation at Laisamis had been enhanced to produce 300 MW to the National Grid.
The Minister said so far Geothermal Development Company has secured a total of six drilling rigs, 4 from the Government and African development Bank, each to give two rigs while an additional 2 rigs will be purchased by the Government in the next financial year.
The Minister said in total the Government has committed sh.26 billion to GDC for all other projects adding that the funds required for the 400 MW Menengai phase one project has been secured.
The GDC Managing director Dr. Silas Simiyu said that to accelerate the speed of power connection to the national grid, GDC intends to use wellhead generation technology to be installed immediately a well is drilled.
He said by striking steam in Menegai, industries will no longer need to relocate from Kenya due to high power bills or unreliable electricity supply since power while tariffs will be lowered.
The company has successfully completed drilling its first well which has a capacity of producing 10 Mega Watts while the drilling works of other two wells was at an advanced stage said Dr Simiyu.”
Source: Kenya Broadcasting Corp.