Geothermal Electricity Compared To Electricity From Other Sources In Kenya

Abstract

Kenya's energy mix is predominantly renewables; more than 80 percent of electricity is generated from locally available renewable sources. To lessen the pressure put by economic growth on the electricity supply and to meet the growing electricity demand, Kenya is planning to generate electricity from non-renewable sources. A number of literature exists on energy sources potential in Africa and a number of studies on renewable sources in Kenya. Nonetheless, currently there are no inclusive studies on cost and energy sources comparison in Kenya therefore this thesis seeks to fill this gap. This thesis analyses the potential for the energy sources in Kenya. Further it calculates using LCoE model the levelized cost of electricity for different energy sources (geothermal, hydro, wind, solar, biomass cogeneration, natural gas, coal and nuclear). For robust results, sensitivity analysis is carried out on the effects of discount rates, ranging from 7% to 14% are used, also considered in the sensitivity analysis are the effects of plant economic lifetime and percentage increment in investment costs. Based on the analysis results of this report, renewables sources are economical with geothermal being the most economical of all in Kenya. Finally, this thesis discusses the benefits associated with continued use of geothermal heat for electricity generation grouping the benefits into economic and environmental benefits.