Kenya’s geothermal sector gets a boost from Indonesia, UAE

Kenya’s geothermal sector recently got a shot in the arm during the Green Industrialisation Initiative in Dubai in a bid to boost its weak energy sector. The energy sector in Kenya faces a myriad of challenges due to several factors, including the high cost of generation, transmission and distribution, as well as a lack of investment in renewable energy sources.

In addition, the sector is plagued by inefficiencies and corruption, leading to higher costs and reduced access to electricity for many consumers.

President William Ruto announced collaboration on geothermal energy development between the Geothermal Development Company of Kenya and Pertamina Geothermal Energy (PGE) of Indonesia during the recently concluded COP28 in Dubai.

United Arab Emirates’ renewable energy company Masdar has invested millions of dollars in PGE.

Mr Abdulla Zayed, the director of investment development for emerging markets at Masdar (Central Asia, Russia and Africa) said Kenya’s collaboration with critical energy companies is key to unlocking its energy potential.

“Masdar sees Kenya as a major player in Africa’s renewables sector and we will continue to explore further partnerships and projects in the country – as part of our wider efforts to massively expand our global clean energy portfolio to 100GW by 2030,” said Mr Zayed.

Earlier this year, Masdar signed agreements with Uganda, Angola and Zambia to develop renewable energy projects with a combined capacity of up to five gigawatts.

“These countries are a part of our wider efforts across the entire continent in our efforts to support decarbonisation and sustainable development,” said Mr Zayed.

Mr Zayed said Masdar’s general approach is to prioritise ambitious projects, which are transformative for local communities and national energy transition strategies – particularly working through collaborative partnerships with international and local partnerships, and strong cooperation at the government level.

“We adopt this same, tried and tested approach in Africa, and this has proven to be fruitful so far. We consider unique local and national contexts when we proceed with our project development,” he added.

He observed that there is incredible potential and opportunity for renewables as Africa is particularly blessed in terms of natural resources, particularly solar power.

However, he noted that the greatest impediment is access to finances that can be used to develop sustainable projects.

“There’s an infrastructure challenge in most of the countries that we are seeking to operate in. This is tricky in determining the future success of any renewables project, but is crucial in determining how efficiently and affordably such a project can be completed,” he explained.

He said countries collaborating with UAE stand to gain a share of its international exposure and expertise in the energy sector.

“The countries we work with will gain from our experience, strategy, policy and regulatory perspective and suggestions on how to enable bankable renewable energy projects,” he added.

Additionally, he pointed out that by developing the projects, whether it’s solar, wind, geothermal, or hybrid technologies, the oil-rich country works with utility companies, grid operators, government bodies and local developers, which could help the developing countries improve their energy sectors and gain international experience.

The transition to green energy is a hot topic especially for Africa as the continent still lags behind in terms of development.

He noted that the world has developed and prospered with fossil fuel, insisting that Africa has to move to green energy now.

“We have to be blunt that as a continent, Africa is still struggling to understand whether this will be sufficient to accelerate development to the level where the rest of the world is.”

In terms of where Africa is in its development journey, Mr Zayed said the opportunities that are available in terms of renewables and the situation we face as a planet must be exploited.

“I don’t believe that there is any other choice but to massively scale up Africa’s renewables capability.”

He added: “I’m confident that with the right catalysts, we can make this a success. The reality is that Africa is blessed with significant renewables potential and that delivering projects at scale will unlock immense opportunities for the economy – in terms of increasing supply to communities who are currently unable to access cheap and reliable electricity across the continent.”

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