NAIROBI, Kenya- The Kenya Electricity Generating Company (KenGen) is making a bold move to bolster the country’s energy supply with its latest project—a Sh32.2 billion geothermal power plant in Olkaria, Naivasha.
This ambitious venture is part of KenGen’s broader strategy to inject an additional 3,000 megawatts (MW) of renewable energy into Kenya’s national grid over the next decade.
KenGen’s new geothermal power plant, dubbed Olkaria VII, is expected to produce 80.3 MW, reinforcing Kenya’s position as a leader in geothermal energy production.
According to an environmental and social impact assessment submitted to the National Environment Management Authority (NEMA) for approval, the project will be a significant contributor to Kenya’s renewable energy goals.
The plant’s capacity is a crucial addition, especially as the country seeks to stabilize its power supply amid increasing demand.
KenGen, which currently accounts for two-thirds of Kenya’s installed electricity generation capacity, has a diverse portfolio of power plants totaling 1,904 MW.
The Olkaria VII project will bring KenGen’s geothermal capacity to 799 MW, placing it just behind its hydropower capacity of 825.6 MW.
With a price tag of $247.5 million (Sh32.2 billion), the Olkaria VII project represents a significant investment in Kenya’s energy infrastructure.
As KenGen pointed out in its submission to NEMA, geothermal energy is the least-cost source of baseload power for Kenya.
This means it can provide a steady and reliable supply of electricity, unlike hydropower, which has become increasingly unpredictable due to climate change and fluctuating water levels in key catchment areas.
The potential consequences of not moving forward with this project are stark. KenGen estimates that failure to develop the Olkaria VII plant could lead to a deficit of 65 to 100 MW, forcing the country to rely on more expensive and less sustainable power sources, such as thermal plants.
This reliance could continue until the government’s planned phase-out of thermal energy by 2035.
KenGen’s Olkaria VII geothermal project is more than just a power plant—it’s a symbol of Kenya’s commitment to sustainable development and energy independence.
By investing in geothermal energy, Kenya is taking a proactive step towards ensuring a stable, affordable, and green energy supply for its future.
As the country continues to explore renewable energy options, projects like Olkaria VII will play a pivotal role in reducing reliance on fossil fuels and mitigating the impacts of climate change.
