Olkaria VII Geothermal Power Plant Project is on course as KenGen is set to implement a multi-billion endeavor to ensure its fruition. The Kenya Electricity Generating Company (KenGen) plans to spend $250 million in building a new geothermal power plant at its fields in Olkaria, Naivasha. The firm said the plant is expected to have a capacity of 80.3 megawatts. It is also part of the state-owned company plans to bring onboard an additional 3,000MW of renewable energy to the national electricity grid over the next 10 years. “KenGen intends to develop Olkaria VII Geothermal Power Plant in the Olkaria field.
The estimated equivalent output of the steam available for Olkaria VII is 80.3MWe (megawatts estimate),” said KenGen. These insights are covered in an environmental and social impact assessment submitted to the National Environment Management Authority (Nema) for approval. The firm is the biggest power producer in the country, accounting for two-thirds of Kenya’s installed electricity generating capacity.
Project Factsheet
Location: Olkaria
Capacity: 80.3MWe
Country: Kenya
Significance: Enhance energy production in the nation
Cost of Phase: U.S. $250 Million
The Significance of the Olkaria VII Geothermal Power Plant Project
The significance of the Olkaria VII Geothermal Power Plant Project is expected to have innumerable benefits for the country. Firstly, it ensures that the nation stays on course to achieve its energy targets. Kenya’s total installed capacity stood at 3,243MW in 2023. KenGen’s hydropower plants currently have the largest capacity, at 825.6MW. However, this is set to be overtaken by geothermal, whose installed capacity will be 799MW once Olkaria VII comes on board. 
While hydropower produces the cheapest power, there are limited options for building additional power plants. “The development of the Olkaria VII geothermal power plant will play an important role in the stabilisation of the power situation in the country. The project will add 80.3MWe to the national grid. This will be a relatively cheap power source since geothermal power is the least cost source of baseload energy for the Kenyan power system,” said KenGen in the document submitted to Nema.
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Challenges Facing Hydropower Development According to KenGen
In their report, KenGen noted that various challenges occassionally imbue hydropower development. “Although hydropower development is also relatively cheap, there is a scarcity of suitable hydropower sites for exploitation in Kenya. Furthermore, hydropower is proving to be very unstable due to climate change and subsequent variability of the hydrological regime in the Tana River catchment,” they noted. It added that failure to implement the Olkaria VII geothermal power project as planned would result in a deficit of 65 to 100MW. The development of Kenya’s new geothermal plant seeks to address these challenges. 
The implication would be continued reliance on costly power sources such as thermal plants, which the government plans to retire by 2035. Furthermore, KenGen seeks to leverage geothermal energy despite talks of a nuclear power plant. However, many Kenyans are opposed to the idea, fearing the implications it may have. KenGen seeks to utilize the rigs that they purchased earlier this year. “Apart from generating more power, the locals will gain through schools, water, roads and employment,” said KenGen Managing Director Eddy Njoroge. Many have noted that the funds allocated to nuclear projects should be channeled to geothermal exploration, such as in developing Kenya’s new geothermal plant.
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$600Million Olkaria Data Center Project Breaks Ground in Naivasha
$50,000/kW ? really