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Kenya secures 29.7mln USD for geothermal projects

Xinhua, April 9, 2016 Adjust font size:

Kenya has secured 29.7 million U.S. dollars concessional loan to finance two geothermal projects to increase the country's power capacity, particularly drawing on untapped geothermal resources in the Rift Valley.

Nairobi received approval from the Climate Investment Funds' Clean Technology Fund (CIF-CTF) for the Concessional Finance Program for Geothermal Generation which was secured with support from African Development Bank (AfDB).

AfDB's Coordinator for CTF, Joao Duarte Cunha said on Friday the CTF funds will create a concessional lending program designed to ensure the projects' financial viability and commercial bankability by shoring up conventional financing and breaking down barriers to private investment.

"Kenya is already demonstrating its ability to reshape its energy future by developing its vast geothermal resources," Cunha said in a statement received in Nairobi.

"But it still faces market barriers to full deployment of its renewables. This infusion of capital will thus serve to build investor confidence and improve bankability of these vital resources," he added.

The program will help reduce the country's dependence on hydro and thermal power sources by contributing to deployment of up to 70 MW of clean, reliable power.

Transformation of the geothermal energy sector is a core part of Kenya's economic growth plan for its expanding population.

In its "Vision 2030" the country identified energy as a key element of its economic transformation, with geothermal as the lead technology.

It is estimated that by 2020 the country's projected installed energy capacity will triple from 2,177 MW to 6,766 MW, with geothermal contributing around 2,000 MW. Enditem