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which has led to deforestation. To increase the robustness and reliability of its power sector Kenya has set ambitious geothermal energy goals. It is estimated that Kenya possesses at least 7,000 MW of the geothermal resource potential.8 Of this, approximately 202 MW have already been developed for power production by state-owned Geothermal Development Company (GDC), as well as some private companies. GDC was established in 2004 to drive further development of its geothermal resources Kenya has set a goal to produce 5,000 MW of energy from geothermal resources by 2030.9 GDC was established in 2004 to fast-track geothermal resource development and a significant part of GDC’s plan to drive the development of Kenya’s geothermal resources is to explore and gather data on various geothermal sites. GDC also owns and operates geothermal drilling rigs with which it can drill full size discovery wells to confirm the presence of commercially viable geothermal resources. By conducting up-front exploration and drilling itself, GDC assumes a significant portion of the risk associated with geothermal development, and is then able to open up geothermal resources to the private sector for further development. At least 14 geothermal sites have been identified for development in Kenya. Of these, the Olkaria and Menengai fields have been some of the most prolific in terms of development activity. GDC estimates the Olkaria geothermal resource potential to be 1000 MW, and three power plants (Olkaria 1, 2, and 3), operated by the Kenya Electricity Generating Company (KenGen) and Ormat Technologies, have already been installed there. GDC is currently drilling production wells at the site for Olkaria 4, a 140 MW plant. While no power plants operate at the Menengai geothermal field, GDC is currently conducting exploration drilling there. GDC puts resource estimates for the Menengai geothermal resource at 1,600 MW.10 Tanzania Geothermal energy has the potential to play a significant role in the growth and modernization of Tanzania’s electricity sector. Currently, approximately 14 percent of Tanzania’s population has access to electricity, while the majority the population’s energy usage (approximately 90 percent) is fueled by biomass. Tanzania expects that growth in its residential, commercial, and industrial sectors will triple demand for electricity by 2020. Currently, there are 1219 MW of installed electricity capacity in Tanzania. Of this installed capacity, 561 MW are hydropower plants, which often force the country to ration power during periods of drought.11 To help drive economic growth and modernize its electricity sector, in 2003 Tanzania enacted its National Energy Policy supporting the research and development of its domestic renewable energy resources.12 While more exploration of the country’s geothermal resources is needed, it is believed that significant potential exists. For example, the Tanzanian Ministry of Energy and Minerals has estimated that as much as 650 MW of geothermal resources exist in the Mbeya region.13 Geothermal developers have recently shown active interest in exploring and developing Tanzania’s geothermal resources. Geothermal Power Tanzania (GPT) Ltd has been exploring the Mbeya regions geothermal resources and expects to begin drilling there either in 2012 or 2013. According to GPT, exploration and drilling is occurring along the Mbaka and Livingstone faults areas, both of which are expected to support 10 MW geothermal power plants.14 GPT is partnering with the Tanzania National Development Corporation, the Tanzanian mining company Interstate Mining and Minerals, Mauritius based Geothermal Power Ltd, and German Geothermal Engineering.15 5PDF Image | Geothermal International Market Report
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