KenGen starts geothermal exploration in Eswatini

The Kenya Electricity Generating Company (KenGen) has begun geothermal exploration in Eswatini, a Southern African country.

Under the Sh250 million contract, the power generating company will work with the State-owned Eswatini Electricity Company in the feasibility studies.

Recently, KenGen completed the drilling of several wells in Ethiopia, where it had been contracted to drill 12 geothermal wells in the Tulu Moye region. 

In Djibouti, KenGen carried out the drilling work last year on behalf of the Djiboutian Office of Geothermal Energy Development.

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In the latest contract, the State-owned exploration firm will conduct geo-scientific studies to assess geothermal potential in three prospective regions of the landlocked country.

According to the Company chief executive Peter Njenga, the milestone underscored KenGen’s continued commitment to advancing renewable energy across Africa.

In a statement, Njenga noted that the studies, aimed at establishing the feasibility of developing a geothermal power plant, were underway, with completion expected in the next few months.

“Our strategic focus is on expanding our footprint beyond Kenya and leveraging our geothermal expertise to foster sustainable development across the continent,”

“This partnership with Eswatini marks another significant step in our mission to support Africa’s renewable energy ambitions and mitigate the effects of climate change,” he said.

The firm said the consultancy in Eswatini is part of its bid to grow beyond Kenya and revenue diversification effort.

“Our strategic focus going forward is on expanding our footprint beyond Kenya and leveraging our geothermal expertise to foster sustainable development across the continent. This partnership marks another significant step in our mission to support Africa’s renewable energy ambitions and mitigate the effects of climate change,” said Njenga.

“This project also reinforces KenGen’s strategy to diversify revenue streams and ensure financial sustainability through geothermal consultancy and related services.”

In further diversifying its revenue sources and reducing dependence on the sale of electricity to the country’s single off-taker, Kenya Power, the firm has been working on its Green Energy Park which will be based at Olkaria.

The park will host large power consumers who will buy electricity directly from KenGen. The move is supported by the recent change in law, with the Energy Act of 2019 stripping Kenya off its monopoly and opening up the sale of electricity to consumers to competitors.

“We have made great strides in the development of the Green Energy Park. Today we have more than a dozen investors who have expressed interest in setting up a business in Olkaria. The advantage that these entrepreneurs have is that they will have access to green electricity straight from the power plants. Additionally, investors who use steam in their manufacturing and processing lines will have the benefit of getting steam from the geothermal power plants,” said Njenga.

Njenga noted that Eswatini had set its sights on harnessing geothermal energy to strengthen its renewable energy capacity and enhance energy security.

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According to him, this aligned with the country’s broader commitment to sustainable development and global efforts to combat climate change by reducing carbon emissions.

“I am optimistic that our geoscientific studies will confirm the viability of Eswatini’s geothermal resources, enabling the country to increase its renewable energy portfolio and enhance its base load capacity,” read the statement in part.

KenGen Board Chairman Frank Konuche described the new partnership as a strategic move by Eswatini to tap into its natural resources. “For KenGen, the project is a testament to our growing influence in geothermal development across the continent,” he said.

He said KenGen’s expertise in geothermal drilling had seen similar projects in Ethiopia, Djibouti, and Tanzania which had played a strategic role in securing the Eswatini contract.

“The company’s reputation for excellence in geothermal consultancy and drilling services has solidified its position as a trusted partner in the region,”

“Kenya remains the continent’s leading geothermal energy producer and ranks among the top 10 globally, with an installed geothermal capacity of 754 megawatts,” he said.