Govt eyes private sector investment to boost clean power generation

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President William Ruto says the government is exploring Public Private Partnerships to develop at least 9000 megawatts of geothermal power that remains untapped.

Speaking at the groundbreaking of the Ksh 12 billion 35MW geothermal power project by Orpower 22 in Menengai, Nakuru County, President Ruto says by leveraging private sector capital and efficiency, Kenya will accelerate its power generation and achieve its 100pc transition to clean power by 2030.

“Many people would have expected us as government to borrow money and come and invest in this facility. That is not the right way to go about this because we do not want to burden the people of Kenya with additional taxes or additional laws when the private sector can do it much more efficiently,” said President Ruto.

Out of the 10,000MW geothermal power potential, Kenya has an installed capacity of 950MW making the country the world’s 6th largest geothermal power producer. Geothermal energy also accounts for more than half of the national power mix.

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This comes as President Ruto backed the recent deal between Kenya Electricity Transmission Company (KETRCO) and Adani Energy Solutions for the construction of a power transmission lines and substations at a cost of Ksh 95 billion for a period of 30 year.

“We will pay for that transmission line using wheeling charge that has been negotiated and it is important for us as a nation to appreciate that the partnership between public and private sector gives us a win-win outcome where we can deliver public services and pubic goods using the efficiency and investment of the private sector as a way of supporting overall development in our country,” he added.

The Geothermal Development Corporation (GDC) has been directed to intensify innovative exploration, such as the use of geothermal heat for industrial processes and greenhouse farming.

The new power plant by Orpower 22 is expected to enhance power supply in Nakuru County, support industrialization and sustain job creation.

Upon completion, the power plant is projected to generate affordable power at Ksh 8 per kWh, significantly lower than the cost of fossil fuel alternatives.

“This particular power plant by Orpower 22 is going to not only add additional power to the national grid, but is going to go a long where in creating an opportunity for investors to come into our country. Investors inherently follow energy, and not just energy but affordable energy and reliable energy,” stated Opiyo Wandayi, Energy Cabinet Secretary.

To further support power access in the region, the government has allocated Ksh 2 billion for the development of last mile power transmission lines which is expected to provide power to 15,000 people.

This comes as the government embarks on negotiations with the Afrexim Bank to secure funding for the development of infrastructure at the 5000 acres Naivasha Industrial Park.

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