- The Insurance Regulatory Authority of Kenya (IRA), in partnership with the Ministry of Energy and Petroleum, the State Department of Industrialisation, and the East African Insurance Sector, has announced a geothermal risk underwriting facility.
The product is expected to fast-track and attract greater investments in green energy projects in Kenya and the region by lessening the financial risk associated with geothermal projects.
The facility will underwrite up to KSh260 million in the early exploration stages, and its development has been supported by Financial Sector Deepening (FSD Africa) in collaboration with Parhelion Underwriting and Kenbright, who are huge partners in the joint initiative.
Principal Secretary, State Department of Energy Alex Wachira, noted that insurance cover for the risky geothermal exploration work is a great enabler for the country to exploit the geothermal power potential estimated at 10,000 MW.
Wachira emphasised that public/private collaborations are a key step to harnessing and exploiting geothermal power to its maximum potential. “However, for us to fill the energy gaps, we need collaboration and investment between the public and private sectors,” said Wachira.
Author: Bryan Groenendaal
Content source: Mount Kenya Times
