Kenya to Support Ethiopia’s Geothermal Energy Projects in a Kshs 5.8 Bn Second Deal

By  |  October 25, 2019

Kenya’s energy generator, KenGen has signed a Kshs 5.8 Bn deal to drill 12 geothermal wells in Ethiopia and boost the country’s energy needs.

In contract with Ethiopia’s independent power producer Tulu Moye Geothermal Operations (TMGO) PLC, KenGen will also provide water supply system and equipment.

This is the second project for KenGen in Ethiopia after, it won a contract to drill geothermal wells for the Ethiopian Electric Power (EEP) in Aluto, Ethiopia.

The project is being implemented in two phases; Phase I comprises the purchase of drilling rigs while Phase II entails the provision of drilling services. KenGen is supplying about 30 per cent of the components of Phase II which translates into about USD 6.2 Mn (about Ksh 620 Mn).

“As top geothermal energy providers in Africa, KenGen has been an inspiration to the region. TMGO is thrilled to become development partners with such a powerhouse; this agreement is a sign of mutual trust and commitment to advancing geothermal energy, which in turn encourages sustainable development in Ethiopia and Africa as a whole,” a statement from the signing said.

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“Since inception, the company has made considerable inroads in Kenya’s energy sector, growing over the years to the current sales market share of about 80% of the electricity consumed by Kenyans,” KenGen said in a statement.

“This contractual agreement is proof that African nations can work together in technology transfer, capacity building and skills development to support the continent in growing its geothermal sector,” it continued. The project is supported by finance from World Bank.

KenGen is the largest geothermal producer in Africa and the 9th globally.

In a 2018 report by International Geothermal Association, Ethiopia has an estimated potential of more than 10,000 MW of power from geothermal alone; a number similar to Kenya’s power potential.

Feature Image Courtesy: ThinkGeoEnergy

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