Power producer Kenya Electricity Generating Company (KenGen) has embarked on an ambitious diversification strategy that has seen it leverage its expertise in geothermal energy.
The company (KenGen) has invested heavily in geothermal exploration and drilling by bringing on board experienced experts in the sector.
Geothermal energy is a fundamental resource which is at the centre of Kenya’s energy policy and East Africa’s energy transition.
Geothermal energy uses heat from reservoirs of hot water below the Earth’s surface to generate electricity. To extract it, wells are drilled into underground reservoirs to tap steam and hot water which is brought to the surface and goes into a turbine to make electricity.
Having gained experience in the home market – which, sitting atop the Great African Rift, is blessed with geothermal resources – Kenyan firms are now being enlisted for geothermal energy projects throughout the region.
At the end of November 2021, Kenya Electricity Generating Company (KenGen) started drilling geothermal wells in Djibouti in a bid to reduce the country’s dependence on imported electricity and fuels and meet the increasing demand for energy from large-scale developments including urban, port and industrial infrastructure.
For Djibouti, devoid of fossil resources, power generation is an issue of economic and social development, but also a matter of national sovereignty in an unstable region. Following Kenya’s lead, Djibouti has established the ODDEG (Djiboutian Office of Geothermal Energy Development), whose mandate includes removing upfront costs and reducing risks for infrastructure, surface exploration and drilling as well as promoting direct uses of geothermal energy and developing skilled labour.
Djibouti has geothermal reserves of 500-1000 MW, according to ODDEG, roughly the equivalent of what Kenya injects into its national grid each year from geothermal power.
The regional market for geothermal and other renewable energy sources remains vast. East Africa has one of the lowest electrification rates in the world, with less than a quarter of the population having access to electricity. Driven by strong partnerships, East African countries are substantially increasing the share of renewables in their electricity production.
Still, due to the length of the project development cycle and development costs, geothermal energy is not likely to offer a quick fix to the region’s power generation problems, but it can be part of a long-term generation strategy.
While Kenya is the African leader, the same geological features exist in other countries along the Great Rift. Ethiopia has made heavy investments to explore geothermal energy and KenGen, as part of its expansion plan, has secured two drilling contracts there. KenGen already operates 22 wells in Ethiopia alongside its Djibouti efforts.
Several countries in the region show interest in geothermal energy but for most, the technical and institutional capacity to implement geothermal energy development projects remains insufficient, as does the political will to enable a major policy shift.
With its supportive policies and institutions, and the successful generation of power at home, Kenya could play an increasingly prominent role in the regional geothermal sector.
