| Abstract |
Resource prioritization in geothermal energy development is a core function of policy makers in any country. In Kenya, the known geothermal prospects occur within the Great Rift Valley where widespread volcanic activity and geothermal manifestations signify existence of viable geothermal energy resources, which can be utilized for both electricity generation and direct uses. Geothermal resources in the rift are estimated to be able to support generation of over 2000 MWe. The Country’s Least Cost Generation Expansion Program has identified geothermal to be among the least-cost sources of indigenous energy in Kenya. Based on this program, the National Power Development Plan requires an additional 512 MWe of geothermal power to be installed by the year 2020. This requires an estimated funding in the region of US$174 million per field for a 70 MWe power plant. This is a significant figure for a developing country such as Kenya. As would be expected therefore, funding remains the biggest hurdle to developing this energy resource in the country. To meet the indicated target in the next 15 years or so, it is necessary that a reliable cash stream be established. The initial high-risk exploration activities leading to pre-feasibility work should remain the responsibility of public institutions as part of their inventory of the country’s resources. Power plant construction can be shared between the public sector and Independent Power Producers. The institutional framework, legislation and legal constraints also need to be addressed to reduce contract or policy uncertainties and expedite licensing so as to attract private developers in the industry. |