Kenya calls for unlocking green energy potential – World

Kenyan President William Ruto has called on private investors to fully explore geothermal energy to unlock the country’s potential and support economic growth.

Speaking at the groundbreaking ceremony for a 35-megawatt Chinese-invested geothermal power plant in Nakuru County on Thursday, Ruto said Africa was rich in clean energy sources and partnership with the private sector was an opportunity to explore this potential.

Ruto said only 10 percent of Kenya’s geothermal energy had been explored. So far, the country has deployed only 950 MW of approximately 10,000 MW, leaving huge potential still untapped.

Relying on the private sector for such infrastructure projects eases the burden on taxpayers and allows them to be implemented more efficiently, he said.

“A lot of people expected us to borrow money to invest in this property. This is the wrong way to go because we don’t want to burden Kenyans with additional taxes and credits when the private sector can do it more efficiently.”

The announcement was made during the launch of Orpower 22, the third geothermal power plant at Kenya’s Menengai geothermal complex in the scenic Rift Valley region of Nakuru. Orpower 22, an investment by Shanghai-based Kaishan Group, is projected to generate about $400 million in revenue over its first 25 years of operation, according to the company.

The Kenya Geothermal Development Company said the Menengai complex has a power potential of approximately 1,600 MW, with a long-term target of generating 465 MW of geothermal steam through a similar partnership.

Ruto also cited a number of public-private partnership projects in Kenya, including the China-built Nairobi Expressway, as a tool to create synergies between public resources and private investment, thereby unlocking Africa’s growth potential.

The launch of Orpower 22 is an example of the government’s commitment to harnessing Kenya’s enormous geothermal potential to drive economic growth, Ruto said. The project’s ability to leverage Chinese technology demonstrates Kenya’s strength in mobilizing private investment to accelerate infrastructure development and economic transformation, he added.

Susan Kihika, Nakuru County Governor, welcomed Kaishan’s investment, saying it will contribute to Kenya’s green transformation and highlighted the country’s attractiveness as a destination for local and international independent power producers in the energy sector and beyond.

“This investment will accelerate industrialization by harnessing Nakuru’s rich geothermal resources and creating new opportunities in agriculture, agribusiness and manufacturing,” Kihika said.

“We want to promote green industry through the use of geothermal energy and other renewable resources such as solar and wind. The aim is to create jobs, increase agricultural productivity and support local and export markets, including the Common Market for Eastern and Southern Africa.”

Paul Ngugi, managing director of the Kenya Geothermal Development Company, said the development underscores Kenya’s commitment to sustainable energy production as the construction of a third geothermal power plant promises broad benefits such as lower electricity costs. He added that the project will also create jobs and promote economic growth.

“This demonstrates the successful collaboration between government and the private sector,” Ngugi said.