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agencies. The Geothermal Development Company (GDC) was formed in 2009 under the same Act and under the National Energy Policy Sessional Paper 4 of 2004. The GDC is a government body that aims to promote the rapid development of geothermal resources in Kenya to meet the 2030 geothermal energy target. In this critical function, the GDC aims to cushion investors from the high capital investment risks associated with drilling geothermal wells. The GDC is expected to drill as many as 1,400 wells to explore steam prospects and make productive wells available to successful bidding investors from both public and private power companies. It is envisaged that the successful bidders will use them to generate electricity or for other uses, such as in greenhouses that use heat and carbon dioxide for photosynthesis and hydrogen sulphide fumigation to improve plant productivity. The Menengai Crater lies at the centre of the GDC’s most recent exploration activities. This geothermal field is estimated to have the potential to produce 1,600 MW (Daily Nation, 2010), practically equivalent to the current national power supply (GDC, 2011). Ongoing public and private investments are planned to increase geothermal power production by 500 MW by the end of 2014. It is estimated that reaching the goal of 5,000 MW geothermal power by 2030 will require an investment of US$20 billion (Ecomagination, 2011). In the fiscal year budget for 2012–2013, geothermal and coal exploration and development activities were allocated US$340 million (Kivuva, 2012). Of this amount, the GDC was allocated only US$20 million (Republic of Kenya, 2012). Conclusion Kenya set an ambitious Vision in 2008 that aims to raise the country out of poverty and turn it into a middle income nation by 2030. In Vision 2030, energy plays a key role as one of the infrastructural enablers upon which the economic, social and political pillars of the country’s development will be built. While energy is very important for Kenya’s development, the country’s reliance on hydropower as the major supply for electricity has caused frequent blackouts and power rationing linked to droughts and variations in water availability in dam reservoirs. This has left the government without any choice but to use expensive emergency generators that run on imported fuels. The Kenyan government has opted for the development of geothermal energy as a key response to overcome the country’s energy bottleneck. This option is not only environmentally friendly, but also provides additional benefits such as reducing the cost of imported fuel, and stimulating the economy through investing in clean energy. In line with the Vision 2030 document, the Ministry of Energy set a specific target that by 2030, geothermal power would account for one-quarter of Kenya’s total installed capacity – up from the current level of 10%. This target will require considerable investment that calls for private sector involvement. To tackle this challenge, the GDC was created in 2009 to cover the high cost of steam well exploration, thereby reducing the risk for potential investors. Achieving its plans for geothermal energy is critical if Kenya is to elevate its economy into middle income status and set an example for the rest of the region. 25.1 Vision 2030 energy generation projection by source Energy source Capacity (MW) Percentage of total Geothermal 5 530 26 Nuclear 4 000 18 Coal 2 720 13 Gas turbines/natural gas 2 340 11 Diesel turbines 1 955 9 Import 2 000 9 Wind 2 036 9 Hydropower 1 039 5 Total 21 620 100 Source: Kianji (2012). WWDR 2014 ThE RolE of GEoThERMAl EnERGy In KEnyA’S lonG-TERM DEVEloPMEnT VISIon 161 TAblEPDF Image | Water and Energy
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