Monday, February 11, 2019

Kenya: Interview With Managing Director and CEO, Geothermal Development Company

Johnson Ole Nchoe, Managing Director and CEO, Geothermal Development Company: Interview (Oxford Business Group)

In what ways can other countries benefit from Kenya’s experience in developing clean energy?

Johnson Ole Nchoe: The development of a long-term strategy such as Kenya’s Vision 2030 is a good example for other countries to follow, enabling them to establish a regulatory framework that helps advance the sector, such as the formation of specific institutions and special economic zones. These kinds of initiatives remove initial risks, channel funds for the development of clean energy, stimulate electricity demand and lower the overall cost of power.

When it comes to international investment in Kenya, foreign expertise and cooperation have provided training, consultancy and advisory services. Independent power producers (IPPs) are mainly overseas companies that participate in the construction of power plants.

In the local geothermal market, foreign expertise from countries with more advanced industries has accelerated the development of the sector in Kenya. The strategy here is to allow the private sector to take up opportunities that have few associated investment risks. This does not, however, negate the participation of local companies.