Table of Contents

1.0 Overview of Kenya’s Energy Sector  

7

1.1 Key characteristics of Kenya’s electricity sector

8

1.2 Status of reforms in the Kenyan power sector   

9

1.3 Status of renewable energy technologies (RETs) in Kenya           

14

 2.0 Analysis of the Geothermal Resources in Kenya     

17

2.1 History of geothermal resource development   

17

2.2 Projected future role of geothermal energy

21

2.3 Theoretical potential of the geothermal resource                                                  

22

2.4 Technical potential of the geothermal resource                                                    

23

2.5 Projected geothermal investment  

23

2.6 Economic issues of geothermal energy 

24

2.7 Socio-economic benefits of geothermal energy  

26

2.7.1 Potential for local assembly and manufacture of geothermal equipment   

26

2.7.2 Geothermal energy and job creation      

28

2.7.3 Other uses of geothermal heat  

29

2.7.4 Geothermal energy and external debt    

29

2.7.5 Geothermal energy and the environment   

31

2.8 Key conclusions   

33

2.8.1 Technical viability of 5% geothermal target                                                       

33

2.8.2 Economic viability of 5% geothermal target                                                      

34

2.9 Study recommendations                

35

2.9.1 Recommendations for policy makers    

35

2.9.3 Recommendations for lobbyists (civil societies, CBOs, NGOs etc)                     

36

3.0 Cogeneration in Kenya’s Sugar Industry     

37

3.1 Assessment of cogeneration potential       

37

3.2 Conventional cogeneration  

38

3.3 Integrated gasification with combined cycle (IGCC)   

39

3.4 Assessment of appropriate cogeneration technologies for Kenya’s sugar industry     

39

3.5 Technical potential for cogeneration

41

3.6 Survey of technology requirements           

44

3.7 Economic assessment of cogeneration in Kenya’s sugar industry     

46

3.8 Investment costs in cogeneration              

47

3.9 Cost Implications of cogeneration contribution to power supply    

50

4.0 Impact of cogeneration on the national economy  

53

4.1 Impact on national economy and the sugar industry  

53

4.2 Opportunities for job creation                    

54

4.3 Environmental benefits 

55

5.0 Key conclusions and recommendations

57

5.1 Bagasse development policy  

57

5.2 Performance of sugar factories. 

58

5.3 Performance of power sub-sector   

60

5.4 Human resource development 

61

5.5 The role of financiers and investors 

62

5.6 Role of lobbyists (e.g. civil societies)

 63

6.0 References  

64