Kenya is set to benefit from Sh million funding from the European Union investment arm to increase geothermal power production.
The European Investment Bank (EIB) which is an investment arm of the EU approved the funding last Saturday targeting private sector-led geothermal power projects in East Africa. The funding will benefit projects in Kenya and 17 other countries, including Ethiopia, Rwanda, Tanzania, Uganda, Mauritius, Mozambique, and Madagascar.
โEligible projects will typically include greenfield development and brownfield expansions, with proven geothermal resources. Investments in geothermal energy will help diversify baseload renewable electricity supply in the region and contribute to the reduction in greenhouse gas emissions compared to fossil-fuel based alternatives,โ said EIB.
Renewable energy investment
The money is part of the global US $4.8 billion that the bank has lined up for the private sector to accelerate renewable energy investment. The funding is a boost to Kenya, which is in the race to cut further the share of expensive geothermal power in the national grid by raising the output of geothermal, wind, and hydropower sources.
Energy and Petroleum Regulatory Authority data shows geothermal is the leading contributor of power to the national grid, accounting for 44.12% followed by hydropower at 26.98%. Thermal is below 13%.
This is in contrast to 2014 when the share of thermal was at a high of 34.49% due to erratic rains that reduced hydropower sources. EIB has worked with Kenya since 1976 and supported different projects in including Olkaria geothermal plants and the Lake Turkana Wind Farm.
