KenGen Risks Losing Olkaria Wells Over 18-Year Licence Blunder Kenya Electricity Generating Company (KenGen) faces a serious legal and operational risk at Olkaria after an error in the coordinates of its geothermal licence left part of the company’s wells, steam infrastructure and other assets outside its legally recognised area. The licensing mistake, made nearly two decades ago, remains unresolved despite the Ministry of Energy and Petroleum acknowledging the problem in 2017. The dispute has raised questions about the security of KenGen’s investments, the government’s management of geothermal resources and the potential consequences for Kenya’s electricity supply. Olkaria is the country’s most important geothermal centre and accounts for the overwhelming majority of Kenya’s installed geothermal generation capacity. Licence Error Exposes Strategic Assets The problem dates back to September 19, 2008, when the Ministry of Energy and Petroleum issued KenGen a licence covering ...
A Global Journey in Geothermal: Insights from an Industry Expert
From Iceland’s pioneering geothermal plants to Kenya’s wellhead projects and Indonesia’s remote fields, few
Image: Lydur skulason with a geothermal well head
professionals have had as wide-ranging a journey in geothermal as Lydur Skulason With decades of hands-on experience in marine engineering, power plant operations, and international project management, he has combined technical expertise with global collaboration to help shape the sector’s growth.
In this conversation, he shares lessons from his career, insights on geothermal innovation, and his vision for the future of clean energy.
Career & Experience
Can you walk us through your career in geothermal and how it began?
I began my career in Iceland, where geothermal energy is a natural part of daily life and a cornerstone of the national energy system. After studying Marine Engineering and Mechanical Technology at Reykjavik University and training as a journeyman with Caterpillar Service in Iceland, I spent eight years as a marine engineer.
In 2001, I transitioned into geothermal, starting at the Nesjavellir Power Plant as a general engineer. Over time, I became a supervision engineer, managing major overhauls of turbines and generators, and later maintenance manager for both Nesjavellir and Hellisheidi.
In 2010, I joined Green Energy Geothermal as Chief Project Manager. There, I supervised the manufacturing of power plant equipment in India and managed the Wellhead Project in Olkaria, Kenya. These experiences laid the foundation for my international career.
My Journey in Geothermal Energy
What inspired your international career in geothermal?
What inspired me was the unique combination of technical challenge and sustainability. Geothermal is complex and demanding, yet it represents a clean and secure energy future.
Early on, I worked on construction, operations, and maintenance of geothermal plants in Iceland, which gave me hands-on experience with turbines, pumps, and cooling towers. Later, I expanded my work internationally, collaborating with global suppliers, taking part in installation and startup projects, and supporting operations in East Africa, Southeast Asia, and beyond.
Teaching at the UNU Geothermal Training Programme in Iceland also reinforced the importance of sharing expertise and building capacity. My journey has really been about growing from local operations into an international role, where I contribute to global projects and help unlock geothermal potential worldwide.
Lessons from Global Projects
You’ve worked in Kenya, Iceland, Indonesia, and the Philippines. What key lessons have you learned?
Every country teaches something new.
- In Kenya, I learned the importance of adapting solutions to rapid growth and training local staff as wellhead units and central plants scaled up.
- In Indonesia, the challenge was working in remote areas where logistics made operations more complex, even though many technical issues were similar to those in Iceland.
- In the Philippines, I worked on a small plant on a remote island, where strong collaboration with local communities was essential to success.
- In Iceland, the lesson has always been the value of building a strong technical base and continuously advancing turbine and pump technologies.
Across all these regions, the common thread is clear: adaptation, collaboration, and people. Geothermal projects succeed not just with megawatts, but with trust, skills, and capacity building.
Technical & Innovation
From a technical perspective, where do you see the most exciting progress?
My focus has always been on reliability and efficiency across the lifecycle of geothermal assets. Innovation often comes from solving practical problems in the field whether through advanced repairs, better materials, or new monitoring methods.
Recently, I’ve worked with 3D scanning, digital twins, rotor straightening, reblading, and welding techniques. These extend the life of critical equipment, cut downtime, and reduce the need for costly replacements.
At the same time, the rise of predictive data acquisition and condition monitoring systems is transforming maintenance. This blend of hands-on repair expertise with digital innovation is where the future of geothermal operations lies.
Image: one on one with a geothermal well head
Challenges in Geothermal
From installations to operations, what is the most challenging aspect of geothermal projects?
The biggest challenge is the transition from installation to long-term operation. During construction, logistics and schedules can be tough but manageable. Once a plant goes online, the task is ensuring reliability over decades under harsh conditions from corrosion and erosion in steam to thermal stress on turbines and pumps.
Equally important is bridging international expertise with local capacity. True sustainability comes when local teams are trained and empowered to run operations independently. Success lies in combining technical reliability with human capacity building.
Innovations That Excite
Which innovations in geothermal excite you the most today?
I’m especially excited about technologies that extend the life of existing assets. Advanced repair processes supported by 3D scanning, digital twins, welding, and reblading allow turbines and pumps to run efficiently for decades. These solutions may seem practical, but they are incredibly powerful in making geothermal more sustainable and cost-effective.
Startups & Collaboration
How can startups and established companies best collaborate in clean energy?
The best results come when startups and established companies combine their strengths. Startups bring agility, creativity, and bold ideas, while established companies offer experience, infrastructure, and scaling power.
Innovation moves fastest when large companies open their operations as testing grounds and share data, while startups provide rapid prototypes. For this to work, culture is key: companies must allow room for experimentation, and startups benefit from mentorship and structure. Mutual respect creates real progress.
Education & Mentorship
What role have education and mentorship played in your career?
Education and mentorship have been central to my journey. Iceland’s strong technical education and the guidance of experienced mentors shaped my early career. Today, I see mentorship as a two-way exchange: sharing knowledge with younger engineers, while learning from their fresh ideas.
Through programmes like the UNU Geothermal Training Programme, I’ve seen the power of international knowledge exchange. Ultimately, the greatest value of education and mentorship is building confidence giving people the skills and support to innovate and take responsibility for success.
Skills for the Next Generation
As a lecturer at the UNESCO Geothermal Training Programme, what skills do you see as most critical for new professionals?
The most critical skills are a strong technical foundation and the ability to solve problems in real-world conditions. But equally important are soft skills communication, teamwork, and cross-cultural collaboration. Even the best technical solution will fail if it cannot be explained or implemented with others.
Finally, curiosity and adaptability are essential. No two geothermal projects are the same. Those who stay open to learning and embrace new technologies will thrive in this sector.
Regional Insights & Future Outlook
How does geothermal development differ across regions, and where do you see the future heading?
In East Africa, geothermal is scaling rapidly to meet rising energy demand. In Southeast Asia, projects face challenges in remote locations. In Europe, Iceland shows how geothermal can anchor a fully renewable system.
Looking forward, I see two main trends:
- Utility-scale expansion in high-resource regions.
- Broader applications, including heating, cooling, carbon capture, and modular plants.
The outlook is very positive geothermal is increasingly recognized as both secure baseload power and a driver of clean energy innovation.
Geothermal & the Global Transition
How do you see geothermal shaping the clean energy transition over the next decade?
I see geothermal taking on a much larger role. As grids depend more on variable renewables, geothermal’s value as continuous baseload power becomes critical.
Beyond electricity, geothermal is evolving into a platform for clean technologies from heating and cooling to mineral recovery, carbon capture, and modular solutions. Over the next decade, I expect geothermal to be recognized as a key enabler of a stable, sustainable global energy system.
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Closing Thoughts
From his beginnings in Iceland’s geothermal plants to projects in Africa and Asia, Lydur Skulason has seen firsthand the technical, cultural, and human dimensions of geothermal development. His story shows that geothermal is not only about megawatts, but also about people, innovation, and sustainability.
As the world pushes harder toward decarbonization, geothermal’s role is set to grow and professionals like him will remain at the forefront of this clean energy revolution.
We sincerely thank Lydur Skulason for generously sharing his time and insights. His experience and perspective bring invaluable depth to the conversation on geothermal energy and its future.
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