Remarks · 24 October 2024
I am delighted to be with you at this highly significant milestone event here in Menengai, Nakuru County. Our nation is taking a big step forward in our quest to achieve the historic goal of a national electric power grid that is 100% clean, by 2030.
Aside from this important objective, the commencement of this project to establish a 35MW power plant by Orpower TwentyTwo highlights our commitment to unlocking Kenya’s vast geothermal potential to drive economic growth. It is also a clear demonstration of our strength in mobilising private sector investment to develop critical infrastructure and provide essential services, thereby accelerating economic transformation. So far, we have tapped only 950MW, a small fraction of our geothermal potential of nearly 10,000MW, leaving immense opportunities still untapped. We call on the private sector to take full advantage of this and move more decisively and with the necessary speed.
Although we are yet to utilise our full geothermal energy potential, Kenya is the 6th largest geothermal producer globally. More impressively, geothermal energy accounts for over 50% of our national power mix, making our nation a global leader in this sector. The completion of the 105MW Menengai project will elevate Kenya’s global ranking to 5th overall, establishing beyond all contestation that economic growth and clean energy development can go hand in hand.
For a long time, the fact that geothermal energy is green, resilient and sustainable has been the basis of our national strategy to expanding our investments aimed at decarbonising the national grid and driving our progress towards net-zero.
As a global leader in this space, Kenya continues to demonstrate how every nation can achieve sustained, rapid and transformative growth, while remaining true to their climate action commitments.
Our achievements today are hardly by chance or miracle. Rather, they are the results of consistent work and investment, guided by a vision of national development committed to achieving prosperity while remaining mindful of the earth’s ecological sustainability. Only a few years after independence, Kenya boldly embarked on this necessary path to transformation by investing in renewable energy long before it became a global priority. Today, 73% of our installed capacity is from renewable sources, contributing over 90% of the electricity distributed nationwide.
The Orpower Twenty-Two plant is the third facility within the Menengai 105MW complex. Not far away, we are continuing to expand our geothermal operations in Olkaria, Eburru, and Baringo, where over 75MW have already been proven and will soon be added to the grid. Kenya’s Rift Valley is establishing itself as a repository of abundant clean energy resources, a fact that should motivate our industrial and commercial sectors to invest confidently in the significant expansion of domestic manufacturing capacity. Affordable, reliable, and clean energy is fundamental to economic transformation, and every new megawatt brings us closer to eradicating energy poverty while boosting productivity and competitiveness. Our geothermal reserves are a national treasure that must be harnessed efficiently to support inclusive growth.
We are here to reaffirm the government’s commitment to enhance economic efficiency and industrial competitiveness by lowering electricity costs. Additionally, our strategy to provide universal access to clean, affordable and reliable energy is clearly on course, and geothermal power remains central to these efforts.
Given the continually rising fossil fuel prices and the intensifying threat of climate change, investing in renewable energy is efficient, prudent, and sustainable. This is precisely what we are doing with geothermal energy. Upon completion, this plant will generate affordable power at KSh8 per kWh, significantly lower than the cost of fossil fuel alternatives. Investors like Orpower Twenty-Two exemplify the value of government-private sector collaboration in attracting foreign direct investment and creating employment opportunities for our citizens.
I urge the Geothermal Development Corporation (GDC) to develop and sustain a high capacity to offer effective leadership in driving Kenya's energy transition. Although geothermal projects are complex, the GDC must remain capable of facilitating swift progress with respect to Menengai and other projects by utilising local labour as well as technical skills and expertise to promote self-reliance and national pride. Additionally, the GDC must intensify innovative exploration, such as the use of geothermal heat for industrial processes and greenhouse farming. The development of the proposed integrated industrial park in Menengai will make a significant contribution to the sustainability and global competitiveness of Kenyan manufacturing.
I take this opportunity to congratulate Orpower Twenty-Two on the progress of your important investment and to express appreciation for your strong vote of confidence in Kenya’s economy. As valued partners in our economic transformation, the government is committed to facilitating your efforts to ensure that your investment succeeds in supporting national development. Thank you.