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 ...
Croatia Approves Geothermal Exploration in Kotoriba: No Full Environmental Impact Study Required
Croatia has taken a decisive step forward in its clean energy transition with a new approval that underscores its commitment to renewable energy development. The Ministry of Environmental Protection and Green Transition has ruled that the upcoming geothermal exploration project in Kotoriba—specifically in Zones 2 and 3—does not require a full Environmental Impact Assessment (EIA). This decision effectively allows Viola Energy Generation d.o.o. to proceed with drilling up to four geothermal exploration wells, marking a major milestone for the country’s geothermal sector.
As Europe accelerates its shift toward sustainable and energy-secure solutions, Croatia’s proactive stance positions it as a rising leader in geothermal development within the region.
A Strategic Decision for Croatia’s Renewable Energy Future
In its resolution dated 30 October 2025, the Ministry concluded that the planned activities can move ahead without the need for a comprehensive EIA. This approval applies to the full suite of exploration activities, including drilling, well testing, temporary land use, and potential well abandonment.
The Ministry’s decision is significant because it reduces bureaucratic delays often associated with geothermal and energy infrastructure projects. While maintaining environmental safeguards, the ruling strikes a balance between ecological protection and the urgent need to unlock Croatia’s geothermal potential—particularly in regions with proven subsurface resources.
The Kotoriba exploration area, located in Međimurje County within the municipalities of Kotoriba and Donja Dubrava, has long been considered a promising geothermal zone. Previous hydrocarbon exploration confirmed geological structures favorable for geothermal systems, making this project not just strategic but also technically grounded.
Key Details of the Approved Geothermal Exploration Project
1. Authorization for Up to Four Deep Geothermal Wells
Viola Energy Generation is permitted to drill four geothermal exploration wells, with two wells allocated to each designated zone. These wells may reach depths of up to 4,000 meters, allowing the project to target deeper, hotter geothermal reservoirs typical of the Pannonian Basin.
Depending on the specific geological conditions encountered, the wells may be drilled either vertically or directionally. Directional drilling offers flexibility in accessing specific subsurface targets while minimizing surface disturbance.
2. Temporary but Controlled Use of Agricultural Land
Each drilling operation requires a 150 × 150 meter pad constructed on agricultural land. These pads provide the necessary footprint for drilling equipment, safety installations, and temporary workers’ facilities.
Once drilling is complete, the pad may be reduced in size or entirely rehabilitated. Productive wells may transition into operational geothermal assets, while non-productive wells will be permanently sealed and the land restored for agricultural use.
3. Minimal Environmental Impact Expected
After reviewing the project proposal and environmental documentation, the Ministry concluded that the exploration activities will not have any significant negative impact on:
- Soil quality
- Groundwater or surface water
- Air quality
- Biodiversity and protected ecosystems
- Nearby communities and settlements
No protected cultural or historical sites are located within or adjacent to the project area. Furthermore, anticipated impacts such as noise, dust emissions, and landscape alterations are temporary, localized, and manageable using industry-standard practices.
Risks associated with accidental spills of drilling fluids or fuel were assessed as low and manageable through established operational protocols.
Strict Environmental Monitoring Will Still Be Required
While the Ministry waived the need for a full EIA, it imposed a mandatory Environmental Monitoring Program. This ensures that the project maintains high environmental standards throughout the exploration period.
✔ Soil Monitoring
Viola Energy must conduct a baseline agricultural and ecological analysis of the soil—known as the “zero state”—before drilling begins.
Soil must be sampled directly at the drilling site and at least 300 meters away, with follow-up assessments conducted after operations conclude.
✔ Groundwater Monitoring
Groundwater will be monitored using piezometers, with water samples tested before, during, and after the drilling operations.
Analyses will include testing for more than 30 chemical indicators, such as:
- pH
- Conductivity
- Total dissolved solids
- Heavy metals
- Organic contaminants
If any decline in groundwater quality is detected, continuous monitoring will be required every six months until conditions return to acceptable levels.
✔ Land Restoration
All negative wells—those that do not show geothermal potential—must be permanently closed following strict technical procedures. The land must then be restored to its original agricultural function.
This ensures that long-term land degradation is avoided and that local farmers retain access to productive farmland.
Why This Approval Matters for Croatia
Croatia sits atop a substantial geothermal resource base, particularly in the Pannonian Basin, which stretches across parts of Central and Eastern Europe. Despite this potential, geothermal development has historically lagged behind other renewable sources such as solar and wind.
This ruling signals a turning point.
1. Reduced Development Timelines
Skipping the full EIA process saves months—sometimes years—of administrative delays. This accelerates exploration, enabling Croatia to move faster toward producing geothermal heat and electricity.
2. Improved Investment Climate
Investors prefer clarity. This decisive ruling enhances Croatia’s attractiveness to renewable energy developers by demonstrating:
- Regulatory efficiency
- Commitment to energy transition
- Low administrative risk
3. Strong Alignment with EU Energy Goals
The European Union’s clean energy roadmap emphasizes geothermal energy for both heating and electricity production. Croatia’s active geothermal development supports regional decarbonization targets.
4. Benefits for Local Communities
If exploration is successful, the Kotoriba region may gain:
- Long-term clean energy supply
- Local job creation
- New revenue streams for municipalities
- Technological innovation and workforce development
Such projects often attract follow-on investments such as geothermal heating networks, greenhouse agriculture, or industrial heat users.
A Green Light for a Greener Future
The Ministry’s decision reflects growing confidence in geothermal energy as a reliable, baseload, and climate-friendly energy source. As Viola Energy Generation d.o.o. prepares to begin drilling, industry observers will closely watch whether the subsurface conditions in Kotoriba reveal a commercially viable reservoir.
A successful outcome could pave the way for:
- Geothermal power plants
- Direct-use heating systems
- Industrial heat applications
- A regional model for accelerated geothermal permitting
Croatia’s commitment to sustainable energy development continues to strengthen, and the Kotoriba project represents one more bold step toward a cleaner, more secure energy future.
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