On 8^th August 2023, KEPSA hosted the Geothermal Association of Kenya (GAK) leaders to discuss critical issues and opportunities within the geothermal industry. KEPSA was led by the CEO Ms Carole Kariuki while GAK was led by the CEO Mr Mike Karanja. Also present were Ms Sharon Obonyo and Dr Stephen Onacha both directors of GAK; Ms Stacey Mwende and Mr Peter Thairu from KEPSA Management. The discussions covered various legislative challenges, industry contributions and avenues for growth and collaboration.

On Industry Contribution the GAK team highlighted the significant role of the geothermal industry in Kenya's energy sector. They pointed out that geothermal energy contributes to approximately 45% of the country's total energy consumption. This underscored the industry's vital role in ensuring a stable and sustainable energy supply.

GAK leaders initiated discussions regarding a number of legislative challenges faced by the geothermal industry. They reported that they have been engaging the KEPSA Energy Sector Board, to address these issues. One of the primary concerns was unrealistic timelines that require geothermal fields to be developed in 6 years. Additionally, the high cost of license charges was raised as an impediment to the sector's growth. The team sought KEPSA's support in advocating for more time for geothermal development and a different way to address the acreage of the license area.

The meeting also discussed some of the challenges in the industry including tariffs and documentation challenges. It was pointed out that the unification of tariffs offered to the Independent Power Producers (IPPs), Kenya Electricity Generating Company (KenGen) and Geothermal Development Company (GDC) doing different power projects in different areas was a challenge as well as the long process of getting approvals, licenses and documentation from different government agencies.

Additionally, delays in obtaining necessary documentation, such as letters of support and Power Purchase Agreements (PPAs), were identified as obstacles that hinder project progress. These delays can extend up to two years, impacting projects with time-sensitive timelines.

The absence of a comprehensive national plan for the geothermal industry was also highlighted. Additionally, security concerns were raised as critical factors that hinder the industry's success, especially up North.

During the meeting, GAK advocated for partnerships with both local and international companies, for the direct utilization of geothermal energy. They emphasized the potential for utilizing geothermal steam or brine in various sectors, including tourism, agriculture, manufacturing, beauty, and fish farming, among others. These applications could provide employment opportunities for the youth and contribute to economic growth. KEPSA will be partnering with GAK to set up a meeting to create awareness for direct utilization of geothermal steam which is cheaper compared to the current model of production in the highlighted sectors.

The following action items were agreed as the way forward;

1. Categorize the policy issues to those that require the intervention of the National Government, the National Parliament and the Council of Governors. Some of the key areas to be addressed include but not limited to the following:

1. Advocate for realistic timelines and reasonable license charges for geothermal licenses.
2. Explore strategies to address tariff discrepancies between IPPs and KenGen.
3. Collaborate on expediting documentation processes for geothermal projects.

2. Develop a national projection plan for the geothermal energy development, integrating the role of Kenyan manufacturers in the geothermal value chain, for instance in the manufacture of steel casings and cement, among others. This would give an indication of quantities of raw materials required in the process, jobs created, etc.
3. Convene a meeting of key private sector stakeholders to promote the direct use of geothermal energy under the patronage of the Cabinet Secretary for Investments, Trade and Industry. The meeting to also incorporate financiers and legal fraternity.
4. KEPSA to collaborate with GAK in mobilisation of stakeholders to the upcoming 2024 Kenya Geothermal Congress.