Reported from Africa, “The (Kenyan) Government will offer incentives to private sector players venturing into geothermal power generation to reduce the country’s over reliance on hydroelectric power.

Another incentive that is expected to attract the private sector is lowering risks associated with drilling of geothermal wells.

“We are reducing exploration costs and investment risks to attract companies that would want to take part in developing local capacity in alternative energy,” Energy Minister Kiraitu Murungi said on Monday.

The recently set up Geothermal Development Company (GDC) will drill wells and absorb some of costs that would be incurred by private companies.

Drilling equipment

The cost of sinking one geothermal well is estimated at more than $6 million (Sh450 million), which is in addition to the acquisition or hiring of drilling equipment and the risk of the well being barren.

Murungi spoke during a green energy conference in Nairobi.

PM Raila Odinga urged the private sector to invest in alternative power generation because the projects have high returns despite high initial investment.

“Private investors have been reluctant to engage in development of geothermal fields.

They say it is too risky. But the fact is that more than 90 per cent of the wells we have drilled, we hit steam in sufficient quantity and in high enough temperature,” he said.

Kenya has an installed power capacity of 1,300 mega watts (MW) and plans to increase this by another 2,000 MW by 2012 to meet increased power demand.

Geothermal power generation offers an alternative to hydroelectric power, with the country having a capacity of 7,000 MW, much of which is yet to exploited.”

Source: The Standard

1 Comment

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   Calistus NdongoliPosted Nov 28th 2009 8:13 am

   AS we fast track the geothermal concept into realization of green energy within the span of 3-10 years in kenya . I would like to point out that, based on the Spirit behind the implementation of Geothermal energy generation; its almost real that we will have energy soon. My concern to similar effort is how will we get this power to the national grid system, it has been admitted being a big challenge in countries like USA currently . I know it takes a lot of processes of environmental study and approvals for High Voltage Transmission Lines to be build, as well resettlement action plan and mitigation/compensation issues to the affected locals. Therefore its my appeal that priority be given for building this Transmission line around Olkaria Domes,Longonot, Suswa, and subsequently similar ready plan around north rift by KETRCO so that we be able to utilize already tested wells that are now within appraisal stage.
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