Kenya: The Case for Geothermal Energy Over Coal

The role of geothermal and coal in Kenya’s electricity sector and implications for sustainable development (New Climate Institute)

This study aims at supporting decision making in the electricity sector in Kenya by comparing geothermal and coal as two main power generation technologies, and the impact of developing these technologies on generation costs, affordability of electricity, and overall flexibility and reliability of electricity supply.

The following key points should be considered by electricity sector planners and decision-makers when determining the most suitable mix of electricity generation technologies in Kenya:

1. Coal generation will be a burden, rather than an asset, to the electricity supply sector.
2. Coal power is expensive and will increase electricity prices.
3. Geothermal power is more flexible and therefore more appropriate for the Kenyan context, given the uncertainty in future electricity demand.
4. Using geothermal instead of coal to generate electricity leads to more domestic job creation.
5. Negative effects on human health can be avoided if no coal-fired power plant is built. 
6. Building the Lamu coal-fired power plant puts Kenya’s climate change target at risk and may result in increased public spending in the event of a carbon price.

The following aspects should be considered for the future orientation of the geothermal sector, in order to ensure the best possible use of this resource:

1. Switching to binary geothermal plants in the future.
2. Adjusting PPAs to incentivise flexible use of geothermal power.
3. Ensuring site diversification. 

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