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7 Kenya 7.1 Kenya and Its Electricity Sector Kenya is one of the largest and fastest-growing markets for geothermal development. The government has ambitious plans to expand the country’s electricity generation from geothermal resources and plans to involve the private sector in their development. While earlier geothermal projects in Kenya relied heavily on support from multilateral development banks, the government now has the legal and regulatory framework, the experience, and the resources to attract the private sector with less support from multilaterals. One notable change is that the government is now assuming the exploration and early development risks for new geothermal developments and bringing in independent power producers (IPPs) at a later, less risky stage. In this section, we provide the following information about geothermal development in Kenya: The Republic of Kenya is located in the Great Lakes region of Eastern Africa. Kenya is a large middle-income country with a population of 41.8 million and a GDP per capita of US$994 in 2013.66 In Kenya, an estimated 19.2 percent of the population had access to electricity in 2011.67 Kenya has an installed capacity of 1,765 MW and an effective capacity of 1,652 MW. Most of the installed capacity is owned by KenGen (70 percent), the state-owned generation company, and IPPs (22 percent). Most of Kenya’s installed capacity is hydroelectric generation (46 percent), thermal generation (34 percent), and geothermal generation (14 percent). Electricity is also produced with solar, wind, and cogeneration, but these do not make up a significant percentage of Kenya’s installed capacity.68 In 2013, electricity consumption was approximately 6,928 GWh; this figure grew an average of 6.3 percent per year between 2009 and 2013. Consumption was highest for commercial and industrial customers (51.8 percent) and domestic and small commercial customers (41.4 percent). Off-peak (0.5 percent), street lighting (0.2 percent), and rural electrification (6.2 percent) made up the remaining sales in 2013.69 The peak demand for KenGen was 1,354 MW in its 2012–2013 financial year; this figure grew an average of 5.4 percent per year between KenGen’s 2007–2008 and 2012–2013 financial years. • • • • Kenya and Its Electricity Sector (Section 7.1) Geothermal Resource Potential in Kenya (Section 7.2) Geothermal Projects in Kenya (Section 7.3) Key Factors That Enabled Geothermal Development in Kenya (Section 7.4). 66. 67. 68. 69. World Bank, “World Development Indicators,” accessed May 19, 2016, http://data.worldbank.org/indicator/SP.POP.TOTL; Kenya National Bureau of Statistics, “Kenya Facts and Figures 2014,” accessed May 19, 2016, http://www.knbs.or.ke/index. php?option=com_phocadownload&view=category&id=20&Itemid=1107. GDP per capita is in current US$. World Bank, “World Development Indicators,” accessed May 19, 2016, http://data.worldbank.org/indicator/EG.ELC.ACCS.ZS. The Kenya Power and Lighting Company Limited, “Annual Report 2012/2013.” Kenya National Bureau of Statistics, “Kenya Facts and Figures 2014,” accessed May 19, 2016, http://www.knbs.or.ke/index.php?option=com_phocadownload&view=category&id=20&Itemid=1107. 42PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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