KENYA is set to strengthen its renewable energy portfolio with the development of a new geothermal power plant by the Kenya Electricity Generating Company (KenGen). The state-owned energy giant is investing $4bn in constructing the Olkaria VII Geothermal Power Plant in Naivasha, expected to add 80.3 megawatts (MW) to the national grid. This initiative is part of KenGen’s broader strategy to inject an additional 3,000MW of renewable energy into Kenya’s electricity grid over the next decade.
The environmental and social impact assessment for the project, recently submitted to the National Environment Management Authority (Nema), highlights the plant’s significant contribution to stabilising Kenya’s power supply. KenGen, which already provides two-thirds of the country’s electricity, is betting on geothermal energy to address the rising demand for reliable and cost-effective power.
The new Olkaria VII plant is poised to play a crucial role in meeting Kenya’s energy targets. As of 2023, the nation’s total installed capacity stood at 3,243MW, with KenGen’s hydropower plants currently leading at 825.6MW. However, geothermal energy is set to overtake this, with an expected capacity of 799MW once Olkaria VII is operational.
Geothermal power, recognised as the least expensive source of baseload energy in Kenya, will provide a stable and affordable addition to the national grid. ‘The development of the Olkaria geothermal power plant will be instrumental in stabilising the country’s power situation,’ KenGen stated in its submission to Nema. ‘This project will add 80.3MW to the grid, offering a cost-effective energy solution.’
KenGen’s report also pointed out the challenges in expanding hydropower, a traditionally low-cost energy source. Suitable sites for new hydropower projects in Kenya are becoming increasingly scarce, and climate change has rendered existing hydropower stations more vulnerable to fluctuations in water availability.
The development of the Olkaria VII geothermal plant is seen as a strategic response to these challenges. Without it, Kenya could face a power deficit of 65 to 100MW, leading to continued dependence on expensive thermal power sources, which the government plans to phase out by 2035.
As discussions around the potential development of a nuclear power plant continue, many Kenyans have voiced concerns about the environmental and safety implications. In contrast, geothermal energy remains a more widely accepted and proven alternative. KenGen plans to maximise the use of rigs purchased earlier this year to further its geothermal exploration efforts.
KenGen Managing Director Eddy Njoroge emphasised the broader benefits of the geothermal project, noting that local communities would also gain from the development through improved infrastructure, such as schools, water supply, and roads, as well as job opportunities.
Many stakeholders have advocated for the reallocation of funds from nuclear projects to further expand geothermal energy, which they see as a more sustainable and secure option for Kenya’s future energy needs.
KenGen’s ambitious $4bn geothermal project at Olkaria VII is not just a step toward energy diversification but a crucial investment in Kenya’s sustainable future. As the country continues to navigate the challenges of energy security and climate change, geothermal power is emerging as a cornerstone of its renewable energy strategy.
