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{
    "id": 405893,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/405893/?format=api",
    "text_counter": 165,
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    "content": "generation of Olkaria I, 45 megawatts, Olkaria II, 105 megawatts, Olkaria IV, 140 megawatts and the well head with 25 megawatts respectively. The Committee in making the familiarization tour wanted, first and foremost, to see and understand the challenges that KenGen is facing, understand the working of this State corporation and to also encourage them to develop and utilize the geothermal energy. We also visited to assist and facilitate any enactment and adoption of the appropriate legislation that they needed so that when the Committee comes back to this House, they can actually fast track that. With provided them the platform to actually share information. When we visited, our findings were:- 1. KenGen produces 80 per cent of electricity in this country. 2. Kenya currently is ranked No.9 in the world in the geothermal development sector. The Company uses various sources to generate electricity ranging from hydro, geothermal and wind. Hydro is leading and contributes about 60 per cent with 677 megawatts, and the remaining being shared between geothermal and wind and also diesel generated. The company is now operating in a liberalized market and is in direct competition with four other independent power producing companies (IPPs) which produce 20 per cent. KenGen has a workforce of 1, 600 employees in 20 different sites. The target of the company is to produce affordable and clean energy although geothermal power in the initial stages is expensive, it is far cheaper in the long term. Therefore, our recommendations as a Committee were:- 1. KenGen to find ways of curbing the steam from the wells and use it as collateral to secure loans from finances as it explores various funding options for projects under the Asset Backed Security Programme (ABS). 2. The ways already identified to generate electricity should be put to immediate use to generate and sell electricity to the national grid at a competitive price. 3. KenGen to have a stakeholders’ forum and to inform the counties where there is potential of geothermal generation so that the counties and the people could support their endeavours. 4. The Government moves with speed in the exploration and mining of coal and looks for natural gas so as to boost the energy security and lower the cost of power that is associated with fossil fuel. 5. KenGen to innovate alternative ways of raising funds and explore options of public finance initiatives or any other private/public partnership arrangement in order to generate more electricity which is dearly needed by this country because currently, Kenya produces 1,200 megawatts. For us to be an industrialized nation and deliver our Vision 2030, we need a minimum of 5,000 megawatts. 6. Legislation be developed to guide the community and the investors on the issuance of land compensation and revenue as generated from the investment especially the sharing mode between the company, the national Government and also the county governments. Mr. Temporary Speaker, Sir, lastly, our recommendation is that the Government should compensate KenGen, especially for the roads developed within Naivasha and The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}