KenGen’s US$4.2 Billion Geothermal Gamble: Powering Kenya’s Green Energy Future

KenGen, Kenya’s leading electricity generator, is embarking on an ambitious US$4.2 billion initiative to expand the country’s energy capacity by an additional 1.5 GW over the next decade. A significant portion of this plan focuses on geothermal energy, with 800 MW expected to come from this renewable source. Several investors have already committed to funding a 300 MW geothermal project, and the German government has pledged support through expertise in solar and geothermal energy development.

During a visit to Olkaria in Naivasha, a geothermal-rich area, German Climate and Economy Minister Dr. Robert Habeck emphasized Kenya’s progress in producing clean, green energy amidst the global climate crisis. He highlighted the country’s vast geothermal and solar potential and encouraged further investment to meet rising electricity demand. Germany’s commitment includes sharing knowledge to phase out thermal plants and reduce emissions.

Kenya’s geothermal energy potential is immense, with an estimated capacity of over 10,000 MW. As the demand for electricity continues to rise, KenGen plans to tap into this resource to support the growing need. In 2023, German Chancellor Olaf Scholz visited a geothermal power plant in Kenya, calling for Germany to follow Kenya’s example in boosting geothermal energy production.

In addition to KenGen’s efforts, other geothermal projects are underway in Kenya, such as a 35 MW plant in Menengai, Nakuru, led by Orpower 22 and expected to be completed by 2026. This project, part of a Build-Own-Operate scheme, is just one of several initiatives aimed at expanding Kenya’s renewable energy capacity.

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