KenGen signs contract to drill three geothermal wells in Djibouti

Kenya Electricity Generating Company (KenGen), a parastatal company and the largest electric power producer in Kenya has signed in Galla Le Komaa US $6.5m contracts to drill three geothermal wells in Djibouti.

The deal was signed between the state-owned power producer embodied by its Managing Director, Rebecca Miano, and Office Djiboutien de developpement de l’energie geothermique (ODDEG) (in English; Djiboutian office of geothermal energy development) in the presence of Kenya’s Energy Cabinet Secretary Charles Keter, Djibouti’s Minister of Energy & Natural Resources H.E. Honourable Yonis Ali Guedi, amongst other officials from both countries.

“We have invested in experts with considerable experience in geothermal exploration and drilling, and will build the capacities of teams from Djibouti who will be working on the project,” said the Kenyan based company.

Read:Kenya drops IPPs for KenGen to generate geothermal power

Third drilling contract

KenGen hopes to offer more commercial drilling services, geothermal consulting, and other energy-related services across the entire African continent. This is the third drilling contract the company has won on the continent.

According to Ms. Miano, the company’s diversification strategy of leveraging its expertise in the field will record a major success when the three wells become productive and enhance Djibouti’s efforts towards growing its energy production.

65% of the energy consumed in Djibouti comes from Ethiopia and dependence on its large neighbour will increase as Djibouti develops energy-using infrastructure. It is estimated that by 2020, if the current configuration does not change, the country could import 700 GWh of electricity.

However, the authorities intend to break this dependence on Ethiopia. They want the country to produce its own energy, but from renewable sources. By renewable energy, the authorities mainly mean geothermal energy, since Djibouti is full of abundant reserves.

Owing to the deal Djibouti, which plans to exploit part of its 1000 MW potential in the geothermal sector as per a 2016 report, will be able to benefit from the experience of KenGen, which has drilled more than 300 wells in the geothermal area of ​​Olkaria.