State cushion geothermal power producers

By Macharia Kamau

The 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.

Raila also said other alternative sources of energy the Government is exploring included nuclear energy.

As we look to develop the right mix of green energy over the next 10 years, it is only natural and desirable for Kenya to seriously pursue nuclear power," he said.

Affordable costs

"The benefits of nuclear power as a climate friendly energy source are unparalleled. Moreover, it is now available at affordable costs. The Government is striving to reap these benefits to provide sufficient power to Kenyans while making sure that all Kenyans will remain safe."

Murungi also said real estate developers would soon be required to install solar water heating systems when putting up buildings to reduce the load on the national electricity grid.

"The Energy Regulatory Commission will soon issue a legal notice that will make it mandatory for all buildings to fit solar equipment," he said.

The conference ends today and was convened to explore long-term power solutions for the country.