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25 The role of geothermal energy in Kenya’s long-term development vision In Kenya, the rate of electrification is around 16%, among the lowest rates in sub-Saharan Africa. The state-owned Kenya Electricity Generating Company Limited (KenGen) is the major energy utility and produces 80% of the electricity used in the country. Its 14 hydroelectric power stations account for almost half of the national electricity supply. Heavy reliance on hydropower has, however, made Kenya’s power supply susceptible to variations in rainfall. With droughts becoming more frequent, water and power shortages are affecting all sectors of the economy. For example, the drought that occurred between 1999 and 2002 had a drastic impact on the hydropower plants and caused a 25% reduction in the amount of electricity generated in 2000 (Karekezi et al., 2009). The resultant cumulative economic loss was estimated to be about 1% to 1.5% of the total Gross Domestic Product, roughly US$442 million (Karekezi and Kithyoma, 2005). As a stop-gap measure, the government engages private energy companies that generate electricity using imported fossil fuels such as coal and diesel. This option has proved to be costly because of the rising prices of such fuels in international markets. It also leads to considerable air pollution from diesel generators (GDC, 2013). While only one in five Kenyans has access to electricity (IEA, 2011), rapidly rising demand is expected to outstrip supply over the coming years. To address this challenge – while still keeping a low carbon footprint – the energy sector has focused on renewable resources in line with Vision 2030, which is the blueprint for the country’s transformation into a middle income nation by 2030 (Box 25.1). The successful implementation of the Vision greatly depends on the supply of adequate, reliable, clean and affordable energy. The energy sector is expected to remain a key player in the overall improvement of the general welfare of the population, which includes the international goal of halving poverty by 2015. The Ministry of Energy will facilitate this by creating an enabling environment for private sector-led growth in energy supply. The key steps in achieving this target are identified as licensing firms to explore geothermal fields, formulating policy and developing an appropriate legal and regulatory framework. The exploitation of geothermal resources is one of the critical elements of Kenya’s Vision 2030 growth strategy. Its main advantages over other sources of energy are that it is indigenous, output is not affected by climatic variability and it has no adverse effects on the environment. Geothermal fields located within the country’s Rift Valley have the potential to produce an estimated 14,000 MW. This rich source has not been adequately tapped: the installed geothermal capacity corresponds to just 1.5% of the country’s potential (ERC, n.d.). Ongoing projects are geared towards meeting the Vision 2030 medium-term target of 1,600 MW by 2016, and eventually 5,000 MW of geothermal power by 2030 (Table 25.1). This would account for one-quarter of Kenya’s total installed capacity, and would be a substantial increase on the 2012 figure of 10%. To attract investment in energy production, the government introduced the Energy Act in 2006. The Act established the Energy Regulatory Commission (ERC), set up to enforce and review environmental quality standards in coordination with other statutory 25.1 Vision 2030 and the role of energy Launched in June 2008, Vision 2030 is Kenya’s development programme for the period from 2008 to 2030. It will be implemented in successive five-year medium-term plans. The Vision identifies energy as a key foundation and one of the infrastructural enablers upon which the economic, social and political pillars of this long-term development strategy will be built. Vision 2030 sets an ambitious goal of increasing the capacity of the national power supply to approximately 21,000 MW (Table 25.1). This corresponds to a more than tenfold increase in Kenya’s current installed capacity of 1,500 MW (Kianji, 2012). Source: Adapted from Ketraco (n.d.). 160 CHapTer 25 CASE STUDIES bOX CHAPTERPDF Image | Water and Energy
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