Kenya calls on unlocking green energy potential

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

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

Ruto said that only 10 percent of Kenya's geothermal energy has been explored. So far, the country has tapped only 950 MW out of an estimated 10,000 MW, leaving immense opportunities still untapped.

Relying on the private sector for such infrastructure projects eases the burden on taxpayers and allows for more efficient implementation, he said.

"Many people would have expected us to borrow money to invest in this facility. This is not the right way because we do not want to burden Kenyans with additional taxes and loans when the private sector can do it more efficiently."

The remarks were made at the launch of the Orpower 22 facility, the third geothermal power plant in 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 within its first 25 years of operation, according to the company.

Kenya's Geothermal Development Company said the Menengai complex harbors an estimated 1,600 MW of energy potential, with a long-term goal of generating 465 MW of geothermal steam through similar partnerships.

Ruto also cited a number of public-private partnership projects in Kenya, including the Chinese-built Nairobi Expressway, as instrumental in creating a synergy between public resources and private investment, thereby unlocking Africa's growth potential.

The launch of the Orpower 22 facility exemplifies the government's commitment to harnessing Kenya's vast geothermal potential to power economic growth, Ruto said. The project's ability to tap into China's technology demonstrates Kenya's strength in mobilizing private investment to accelerate infrastructure development and economic transformation, he added.

Susan Kihika, governor of Nakuru County, hailed the investment by Kaishan, saying it will boost Kenya's green transformation and highlighting the country's appeal as a destination for both local and international independent power producers in energy and beyond.

"This investment will accelerate industrialization by leveraging Nakuru's abundant geothermal resources, creating new opportunities in agriculture, agribusiness and manufacturing," Kihika said.

"We want to promote green industries by utilizing geothermal energy and other renewable resources such as solar and wind. The aim is to create jobs, enhance agricultural productivity and support local and export markets, including the Common Market for Eastern and Southern Africa."

Paul Ngugi, managing director of Kenya's Geothermal Development Company, said this development underscores Kenya's commitment to sustainable energy generation since the construction of this third geothermal power plant promises wide-ranging benefits, such as lower electricity costs. He added that the project will also create job opportunities and boost economic growth.

"It showcases the successful collaboration between the government and private sector players," Ngugi said.