Energy wins big in budget allocations

Despite increased pushed for renewable energy, the Government has set aside some Sh492 million for clean energy projects.

Kenya has an installed capacity of 1,600 megawatts, about 60 per cent of which is sourced from hydro electricity dams. Despite a huge potential in geothermal sources – estimated to have a capacity to generate over 7,000mw – the country has an installed capacity of about 200mw. There are, however, plans to double this over the next two years.

In addition to expanding electricity generation projects, significant amounts has to go towards setting initial stages for commercial production of crude oil recently discovered in Turkana.

“The ministry intends to continue its investments in the generation of additional geothermal power at Olkaria wellheads, hydropower development, renewable energy promotion and development, fossil fuel exploration and development, promote rural electrification, energy sector regulation, security and conservation,” said the budget estimates table in Parliament Tuesday.

The quality and quantity supply are currently major issues for both domestic and large consumers, with unreliable and highly priced electricity cited as among the factors that have hindered growth of sectors such as manufacturing.

It is also looking at further studies on areas that have potential for oil. It said the Sh1 billion for oil exploration will be used to avail data on petroleum unlicensed blocks to attract investments in exploration.

Prospecting firms in Kenya have found oil deposits in Turkana County that they say are commercially viable. Tullow Oil – the firm that made the announcement in March last year- is still undertaking tests to determine the actual amount of oil deposits in the blocks that it operates in Turkana.