Kenyan developer receives $720k for early work on geothermal project
Renewable energy developer Capital Power has received $720,000 in funding for early exploration work at the site of the Homa Hills geothermal project in Western Kenya.
Reported from Kenya, renewable energy firm Capital Power has announced having secured $720,000 (about Sh72.6 million) from the African Union Commission (AUC) for a 140 MW geothermal prospect in Homa Bay County. The area lies at beautiful Lake Victoria, Kenya.
The company applied under the Geothermal Risk Mitigation Facility (GRMF) for the funding.
Director Tony Wanyama said the funds will be used to conduct a surface study and infrastructure upgrade programme at the Homa Hill.
The grant represents 80 per cent of the total cost of the surface exploration at $1.07 million (about Sh107.9 million).
Capital Power will conduct the studies starting this year, with the commissioning of the power plant expected by 2023.
Homa Hills is the only known geothermal resource in western Kenya.
Mr Wanyama said the project, once completed “will provide grid stability in Western Kenya and also provide employment opportunities as well as spur industrial development.”
AUC Commissioner for infrastructure and energy Amani Abou-Zeid (represented by Philippe Niyongabo, energy expert) said the grant is part of efforts to support geothermal energy development in eastern Africa, which has a potential of over 20,000 MW geothermal electricity.
The project and funding is part of the up to $80 million of funding made available under the first four rounds of the GRMF program in East Africa.
Source: Business Daily