Capacity Strengthening for Geothermal Development in Kenya

Power generation capacity in Kenya was 1,593 MW, in which 48% of the power was generated using hydropower as of June 2011. However, while the peak power demand in March 2011 was 1,294 MW and in January 2012 was 1,211.9 MW, the actual power supply was 1,194 MW, owing to a shortage of water. According to the “Least Cost Power Development Plan (LCPDP),” which is an electricity development plan of the Republic of Kenya, the peak power demand in Kenya is estimated to increase up to 12,738–22,985 MW in 2030. Power demand in Kenya is increasing at a rate of 8% annually, and about 50% of the total power generation capacity in Kenya relies on hydro-power generation, which is susceptible to climatic / weather conditions. Therefore, the Kenyan government plans to invest in developing the country’s abundant geothermal resources to supplement the base load, with an aim to increase the installed capacity to 5,530 MW by 2030, in accordance with the LCPDP (2011-2031). Under the above-mentioned circumstances, the Kenyan government established the Geothermal Development Company (GDC) in 2009 in order to accelerate geothermal development. GDC is mandated, in principle, to develop all the geothermal resource in the nation. Currently they are engaged in development programs such as production drilling through supervision of drilling contracts in Olkaria; exploration, appraisal drilling and development drilling in the Menengai area ( located approximately 150 km northwest from Nairobi) as well as in the Paka/Silari fields located north of Lake Baringo and elsewhere in the country. The project funding has been supported by the Government of Kenya and development partners including: the French Development Agency (AFD), African Development Bank (AfDB), World Bank (WB), European Investment Bank (EIB), SREP, United States Trade and Development Agency (USTDA), United States Agency for International Development (USAID) among others. However, despite sufficient financing provided by the Development Partners to GDC, the capacity of GDC proved insufficient in identifying potential drilling targets, striking drilling targets, evaluating geothermal resources, etc.. Thus, GDC’s aim is to reduce these risks through building-up their capacity. Given this background, the Government of Kenya requested the Project for Capacity Strengthening for Geothermal Development in Kenya (hereinafter referred to as “the Project”). The Government of Japan approved the Project for implementation in 2013.