The government of Kenya has given the nod for the development of the Olkaria VII Geothermal Power. The new facility is expected to add 80.3MW of electricity to the national grid by mid-2027.
Spearheaded by state-owned electricity producer KenGen, the project will harness energy from 19 geothermal wells and is being developed in partnership with the Japanese government and the European Investment Bank.
According to KenGen, electricity demand in Kenya continues to rise, increasing by roughly 100MW annually. The growing adoption of electric vehicles is projected to require an additional 334MW by 2032, while the national industrialisation plan anticipates a demand surge of over 1,000MW during the same period. The Olkaria VII plant is seen as a critical step in meeting this future demand sustainably.
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Grid stability
KenGen’s Chief Executive Officer, Peter Njenga, recently outlined the company’s 10-year strategy, which aims to supply an additional 1,500MW of electricity all from renewable sources such as geothermal, hydro, solar, and wind. Of this, 800MW will come specifically from geothermal energy. Njenga also highlighted plans to invest in a 500-hour energy storage system for wind and solar power, aiming to enhance grid stability.
The entire renewable energy expansion will require approximately US $4.3bn (KSh554.7 billion) in funding, with KenGen seeking support from international donors and development partners. The company’s installed generation capacity currently stands at 1,726MW, and the new investments are intended to help meet the country’s growing energy needs, driven by increased economic activity and investment.
