Kenya To Gain From $94m EU Geothermal Power Fund
Posted on : Tuesday, 24th August 2021
Kenya is among countries set to benefit from €80 million ($94 million) funding from the European Union investment arm to increase geothermal power production.
The European Investment Bank an investment arm of the EU approved the funding targeting private sector-led geothermal power projects in East Africa.
The funding will benefit projects in Kenya and 17 other countries, including Ethiopia, Madagascar, Mauritius, Mozambique, Rwanda, Tanzania, and Uganda.
“Eligible projects will typically include greenfield development and brownfield expansions, with proven geothermal resources,” said European Investment Bank.
"Investments in geothermal energy will help diversify baseload renewable electricity supply in the region and contribute to the reduction in greenhouse gases emission compared to fossil-fuel based alternatives."
The money is part of the global €4.1 billion ($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 year 2014 when the share of thermal was at a high of 34.49% due to erratic rains that reduced hydropower sources.
European Investment Bank has worked with Kenya since year 1976 and supported different projects in including Olkaria geothermal plants and the Lake Turkana Wind Farm.
Information on European Investment Bank website shows that the bank has so far spent €1.534 billion ($1.8 billion) on projects in diverse sectors in Kenya including energy, agriculture, and health.
Projects in the energy sector including Lake Turkana Wind Power, Olkaria geothermal, and Kenya Power grid development account for Ksh 95.1 billion ($878.9 million) or 49% of the total funding.
European Investment Bank last year spent €96 million ($113 million) on 3 projects in Kenya including Ksh 3.1 billion ($28.6 million) for the Kenya Agriculture Value Chain facility.
