Without geothermal energy, it would be very hard for this country to meet its power demand.
Summary sheet
The project consists of the extension of the existing 140 MW Olkaria I Unit 4 & 5 geothermal power plant with an additional 70 MW turbine (Unit 6), the necessary wells, steam-gathering system and interconnection facilities.
The project will help meet growing electricity demand at a competitive cost. Its economic benefits include increased power generation, improved security of supply (geothermal power is unaffected by annual hydrological conditions), reduced national dependence on imported fossil fuels for electricity generation, fewer emissions associated with conventional thermal generation and additional operational flexibility with the greater Olkaria geothermal generation park.
If located inside the EU, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, requiring a screening decision by the competent authority. Kenyan law requires a full EIA. An environmental and social impact assessment (ESIA) has been established for the new unit and has been approved and a respective licence issued by the NEMA (National Environmental Management Authority). As with the other units of Olkaria I power station, the project lies in the Hells Gate National Park, where there is no human settlement. The Bank will ensure that the project complies with its environmental and social standards.
The promoter is a utility majority-owned by the Government of Kenya. For the project it will adopt open competitive tendering procedures and envisages publication in the Official Journal of the EU for the main contracts. The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement.
The Government of Kenya, in its Vision 2030 development programme launched in 2008, has identified energy as being one of the key enablers to attain 10% GDP growth target. The project will provide renewable energy to bridge the existing gap between energy demand and supply in Kenya and it will help mitigate the impact of climate change. The investment is in line with the Sustainable Development Goals (SDGs), especially SDG 7 "Ensure access to affordable, reliable, sustainable and modern energy for all".
Documents
Inside the project
How and Why
Africa’s energy leader
Why
- Geothermal power offers clean energy
- Reduces fossil fuel emissions
- Helps Kenya become an African leader in renewable energy
How
- Kenya expands geothermal energy and exports technical knowledge
- Kenya’s Vision 2030 plan aims for country to use 100% renewable energy by 2030
- The success of geothermal helps Kenya invest in other green energy, such as hydropower and solar parks
Sectors & Countries
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