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Kenya looks to geothermal
power, drought hits dams |
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NAIROBI(November
24, 2009) - Kenya needs $1.02 billion in the next
three years to tap its geothermal power potential, seen as an answer
to over-reliance on drought-hit hydroelectric power, Energy Minister
Kiraitu Murungi said on Monday.
Drought has slashed capacity at Kenya's main dams, forcing shutdowns
and leading to reliance on costly diesel-powered generators, which
in turn have pushed up energy bills.
East Africa's biggest economy has relied on hydro energy to provide
up to 90 percent of its electricity requirements. The country produces
about 1,300 MW of power.
East Africa's largest economy needs to add another 1,800 megawatts
(MW) in new power generation to its grid to meet growing demand, Murungi
said.
About 200 MW comes from geothermal sources now, although the government
estimates it has the potential to produce 7,000 MW. The government
aims to raise production by 2,000 MW by 2014.
Murungi told a conference that Kenya's Geothermal Development Company
(GDC) would need at least 12 rigs by 2010-11 for the drilling of 72
wells each year and the acquisition of at least 100 well head generators
over the next three years.
"The financial resources required to realise this strategy include
$324 million for procurement of the rigs, and $700 million for the
well head generators," he said.
Murungi added that GDC, and main power producer KenGen, had secured
funds and awarded a tender for two rigs and were seeking money for
another two.
GEOTHERMAL COSTLY
He said the main obstacle in investing in geothermal was the high
costs involved. For instance, it costs $6.2-$6.5 million to drill
a well and a well-head generator costs between $7 million and $8 million.
"It has been difficult to attract private sector investment into
the geothermal sector due to the extremely high front-end costs,"
he said.
Murungi said Kenya needed to ramp up power production to meet growing
demand.
"To address the current supply-demand imbalances and provide
reserve margin of at least 20 percent, we need close to 1,800 MW in
new generation capacity," he said.
The country is seeking to expand generation of electricity from other
renewable sources. This includes a 300 MW wind farm in northeastern
Kenya due to be commissioned by 2012..
KenGen is already setting up wind turbines to produce 5.1 MW. Murungi
said there were plans to increase this by another 30 MW. The government
says wind power has the potential to produce 2,000 MW in Kenya.
Kenya has spent 630 million shillings ($8.43 million) in Kenya's dry
areas on solar power for hospitals, schools and health centres in
the last four years and has set aside 500 million shillings more in
the 2009/10 budget, Murungi said.
He said the country also has the potential to produce more than 300
MW from sugarcane by-products, but only one sugar producing company
has been feeding 23 MW to the grid.
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