Kenya to Boost Geothermal Energy Supply with 53 Megawatt Expansion
Kenya plans to inject an additional 53 megawatts of geothermal energy into its national grid, priced at an average of Sh8.9 per kilowatt-hour, as part of efforts to provide affordable electricity. This capacity will come from the expansion of the Olkaria I plant and the Orpower 22 facility. Expected to be operational by June 2026, the new energy supply aims to reduce electricity costs for consumers amid ongoing challenges in lowering power prices. The initiative underscores Kenya's reliance on renewable energy sources to ease the burden of high electricity bills.
Theia Market Signal Identification - AI AssistedKenya is set to enhance its energy landscape with the addition of 53 megawatts of geothermal power, priced at an average of Sh8.9 per kilowatt-hour. This initiative, aimed at providing more affordable electricity to consumers, will come from the expansion of the Olkaria I geothermal plant, increasing its capacity from 45 megawatts to 63 megawatts, alongside contributions from the 35-megawatt Orpower 22 facility. The new capacity is expected to be integrated into the national grid by June 2026, marking a significant step in Kenya's strategy to bolster electricity supply at competitive prices.
As it stands, the power generated from these two geothermal plants will position them as the third most economical source of electricity, following local hydropower and imported power from Ethiopia. The ongoing efforts to reduce electricity costs are crucial, especially for businesses facing the brunt of high energy bills. Paul Ngugi, Managing Director of the Geothermal Development Company, emphasized the predictability of geothermal energy costs over the long term, highlighting its advantages compared to fossil fuels.
Kenya's energy strategy increasingly focuses on renewable sources, particularly hydropower and geothermal energy, to mitigate reliance on expensive thermal plants. The government is striving to negotiate new power purchase agreements to lower retail electricity prices, which have been a persistent issue in the sector. Since 2022, electricity imports from Ethiopia have played a vital role in stabilizing supply while circumventing the steep costs associated with thermal sources.
The expansion of the Olkaria I plant, Kenya's oldest geothermal facility, reflects the country's substantial yet largely untapped geothermal potential, estimated at over 10,000 megawatts. With the current operational capacity of geothermal plants standing at 940 megawatts, the government is keen to harness this resource to meet growing energy demands and ensure reliable electricity access for all Kenyans.
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