Unit 4 Macro: Kenya invests in geothermal energy

Here is an example of a fast-growing developing country in Africa making important investment to help meet ambitious targets for supplying energy from renewable sources. Katrina Manson films and reports for the Financial Times from the Great Rift Valley on Kenya’s latest plans to exploit geothermal energy to produce electricity.

The fixed costs of finding geo-thermal sources, build the turbines and then connect to Keyna’s energy grid are huge. But a move towards smaller geo-thermal energy plants provide a more cost efficient approach. Successful investment will help to reduce energy imports, provide a viable alternative to uncertain hydro-electric power, create new jobs and contribute to Kenya’s search for sustainable growth.