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AFREPREN/FWD Source: KenGen, 2002 3. Lessons Learned – Why is Geothermal Power in Kenya a Success? The strong policy support for geothermal power in Kenya was a key factor that led to its successful exploitation. Kenya’s Least Cost Power Development Plan (LCPDP) instituted in 2000 recognizes geothermal as an important low cost energy option for the future (see table 3) compared to other forms of electricity generation – especially conventional ones. The Kenyan government has been aware of the fact that, for accelerated development of the country’s geothermal resources, joint efforts were required from both the public and private sectors. However, it recognised the risks associated with initial geothermal exploration, drilling and the assessment of the resource as being a disincentive to private sector investment, and the fact that this could lead to unsustainablly high electricity tariffs. To avert this outcome, the government financed these pre-development activities jointly with the utility KenGen prior to liberalisation of power generation in 1996. KenGen has since withdrawn from funding these activities and the government has taken full responsibility. Government commitment to exploration showed that it was www.e-parl.net www.afrepren.org P a g e | 6PDF Image | Geothermal Power Generation in Kenya
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