KenGen fast tracks Eswatini’s geothermal project

KenGen fast tracks Eswatini’s geothermal project

KenGen fast tracks its geothermal contract with the Eswatini Electricity Company (EEC).

Geothermal projects in several African countries will support Nairobi based Kengen’s diversification plans.

The Kenya Electricity Generating Company (KenGen) expects a return of at least 20% for its cross-border geothermal investments in four more African countries (Tanzania, Eswatini, Zambia, and Malawi) in the short term, said the company’s Managing Director and CEO Peter Njenga in a recent interview.

Progress in Eswatini

KenGen has made major progress in its Ksh. 250-million geothermal development contract with the state-owned Eswatini Electricity Company (EEC).

The contract was awarded earlier this year and tasks KenGen with conducting comprehensive geoscientific studies to assess geothermal potential in three prospective regions of the Southern African country, Eswatini.

These studies, aimed at establishing the feasibility of developing a geothermal power plant, are now well underway, with completion expected in the next few months.

According to Njenga, KenGen’s strategic focus is on expanding the company’s footprint beyond Kenya and leveraging their geothermal expertise to foster sustainable development across the continent.

“This partnership with Eswatini marks another significant step in our mission to support Africa’s renewable energy ambitions and mitigate the effects of climate change,” says Njenga.

Eswatini sets sights on geothermal

Eswatini, a landlocked Kingdom in Southern Africa bordered by South Africa and Mozambique, has set its sights on harnessing geothermal energy to strengthen its renewable energy capacity and enhance energy security.

This aligns with the country’s broader commitment to sustainable development and global efforts to combat climate change by reducing carbon emissions.

“I am optimistic that our geoscientific studies will confirm the viability of Eswatini’s geothermal resources, enabling the country to increase its renewable energy portfolio and enhance its baseload capacity.

“This project also reinforces KenGen’s strategy to diversify revenue streams and ensure financial sustainability through geothermal consultancy and related services,” says Njenga.

According to KenGen’s Chairman Frank Konuche, the Eswatini project is testament to KenGen’s growing influence in geothermal development across the continent.

KenGen’s experience and expertise in geothermal drilling, honed at Kenya’s Olkaria geothermal fields and in successful projects in Ethiopia, Djibouti, and Tanzania, played a strategic role in securing the Eswatini contract.

The Eswatini project is one KenGen’s latest geothermal development contract in Africa, following successful ventures in Djibouti, Ethiopia, and Tanzania.

Kenya remains the continent’s leading geothermal energy producer and ranks among the top 10 globally, with an installed geothermal capacity of 754MW.

KenGen’s expertise in geothermal energy development continues to position the company as a key driver of Africa’s green energy transition while contributing to economic growth and environmental conservation across the region.

Geothermal Development in Kenya

Exploration for geothermal resources in Kenya started in 1950’s and gained momentum in the 1960’s, when two wells were drilled at Olkaria. From 1967, the United Nations Development Programme (UNDP) in collaboration with the Kenya Government and the then East African Power and Lighting Company, conducted geological and geophysical surveys in the area between Lake Bogoria and Olkaria.

The studies identified Olkaria as the most prospective area leading to the construction of the first geothermal power station between 1981 and 1984.

The article was published by Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine

KenGen fast tracks Eswatini’s geothermal project