Reinvigorating geothermal project finance in Kenya through Public-Private Partnership

  • Geothermal power is an affordable, clean and sustainable source of electricity that supplements Kenya’s current national grid.
  • The geothermal potential of Kenya is estimated to be 10,000MW, of which only 950MW has been harnessed and injected into the national grid as of August 2022.
  • One of the key challenges experienced in the early stages of geothermal resource development is the financing of exploration activities.

Jesse Nyokabi, Sharon Mwakugu, Louise Mathur, and Johnson Mwawasi, have presented a paper at the 9th Africa Rift Geothermal Conference in Djibouti on how Kenya’s geothermal sector can be further unlocked through public-private partnerships (PPP).

Fast-tracking geothermal project financing in Kenya through public-private partnerships and recognition of the real value and benefits of public-private partnerships (PPPs) in geothermal projects will provide the opportunity for the development of new geothermal fields. One of the ways this can be achieved is by reducing the period from planning to financing approval, which should be the realizable goal so that projects are developed when and where they are most needed.

The paper aims to demonstrate to the local and international stakeholders that would like to invest in the geothermal sector in Kenya viability PPPs. The paper highlights Kenya’s PPPs geothermal project structuring, project financing model, projects risks, risk mitigation, challenges, and possible solutions to the challenges. This would enable geothermal projects to reap the maximum benefits offered by the Public-Private Partnership for effective project planning and financing.

Link to the paper HERE 

Author: Bryan Groenendaal

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