Eavor Demobilizes Rigs from Geretsried: What It Really Means for Closed-Loop Geothermal For three years, two drilling rigs on a farm estate near Geretsried, a Bavarian town about 40 km south of Munich, stood as the symbol of the world's most ambitious closed-loop geothermal experiment. Now in October 2026, Eavor Technologies, the Calgary-based developer of the Eavor-Loop, has told the town and its heating utility that both rigs would leave the site . The company said keeping idle rigs and specialist services on site was costly, and that releasing them would help put the project in the strongest position to continue with Loop 2 once its commercial structure is reworked . On the surface, this is a logistics decision. Underneath, it is one of the clearest signals yet about where first-of-a-kind geothermal technology stands, and how hard it is to turn a technical proof into a bankable business. This article explains exactly what happened, what the move means and what it does not mean...
The Great Rift Valley’s Steam-Powered Revolution
By : Robert Buluma
Deep beneath Kenya’s Great Rift Valley lies a resource that is quietly transforming the nation’s economic and environmental future. With an estimated geothermal potential of 10,000 MW, Kenya possesses one of the world’s most abundant sources of clean, reliable baseload power. In 2026, the country is not merely tapping this potential—it is rapidly emerging as Africa’s undisputed geothermal superpower. From completing landmark projects that push the nation past the 1 GW installed capacity milestone to unlocking vast new fields in Suswa and Baringo-Silali, Kenya’s geothermal sector is undergoing a historic expansion. This article provides a comprehensive, insight-driven analysis of Kenya’s geothermal landscape in 2026, detailing key projects nearing completion, strategic expansion plans through 2030, and the policy innovations attracting billions in private investment.
Part One: The Current Landscape — Installed Capacity and Energy Mix
From 45 MW to a Gigawatt: A Nation’s Energy Transformation
Kenya’s journey into geothermal energy began modestly in 1981 with a single 15 MW unit at Olkaria. Four decades later, the sector has evolved into the backbone of the national grid. By early 2026, Kenya’s installed geothermal capacity stood at approximately 984 MW. The state-owned Kenya Electricity Generating Company (KenGen) remains the dominant player, operating 753 MW of this capacity—more than three-quarters of the national total.
Geothermal energy consistently supplies over 40 percent of Kenya’s electricity, the highest share of any country in the world. In the second half of the 2025/26 fiscal year, geothermal contributed 40.06% of grid energy, compared to hydropower’s 22.36% and wind’s 12.98%. With renewables overall accounting for nearly 80% of supply, Kenya’s electricity mix is among the cleanest in Africa. The government has committed to reaching 100% clean energy generation and universal electricity access by 2030, a target that places geothermal at the center of national strategy.
Part Two: Key Geothermal Projects Reaching Completion in 2026
The year 2026 marks a pivotal moment in Kenya’s geothermal history, with over 190 MW of new capacity coming online through multiple projects. These additions will push Kenya firmly past the 1 GW installed capacity milestone and cement its leadership in the African geothermal sector.
Menengai Geothermal Field: The 105 MW First Phase Nears Completion
Situated near Nakuru, the Menengai geothermal field represents one of Kenya’s most ambitious public-private partnerships. The first development phase targets 105 MW across three 35 MW independent power producer (IPP) plants.
The first plant, developed by Sosian Energy, has been operational since 2023. In 2026, the second and third projects are reaching completion:
· OrPower 22 (Kaishan Group) : The 35 MW Menengai III plant successfully completed its 30-day stability operation test on 5 March 2026 and officially commenced commercial operations on 10 March 2026. The total project cost is $91.9 million. The plant is expected to generate approximately 301 GWh of clean baseload electricity annually.
· Globeleq: The third 35 MW plant advanced toward operation by mid-2026. In April 2026, the project entered its commissioning phase, with steam admitted to the turbine for the first time. However, in late May 2026, a delay in grid connection was announced due to the Geothermal Development Company’s (GDC) failure to provide contracted steam supply, highlighting the operational challenges that can arise even in well-planned projects.
Once fully operational, the three Menengai plants will add 70 MW from the OrPower 22 and Globeleq facilities to the national grid, bringing the field’s first-phase capacity to 105 MW. Steam for all three plants is supplied by GDC.
Olkaria Complex: Rehabilitation and New Build
The Olkaria geothermal complex in Naivasha remains the heart of Kenya’s geothermal industry, with two major initiatives in 2026:
· Olkaria I Rehabilitation: KenGen is upgrading the Olkaria I power station (Units 1-3), increasing its capacity from 45 MW to 63 MW through equipment modernization. By mid-2026, work was at approximately 95% completion, with full commissioning expected by September 2026. The additional 18 MW from this rehabilitation alone will add significantly to baseload capacity.
· Olkaria VII: The Kenyan Cabinet approved the construction of the 80.3 MW Olkaria VII geothermal power plant in August 2025. Development is advancing, though a funding dispute over consultancy services has introduced uncertainty. When completed, Olkaria VII will be a flagship addition to KenGen’s portfolio.
Together, Olkaria I’s rehabilitation and the Menengai additions are expected to inject approximately 133 MW of new geothermal power into Kenya’s grid by late 2026.
Part Three: Expanding the Frontier — Suswa, Silali, and Beyond
While 2026 is defined by project completions, it is equally defined by the launch of exploration activities that will shape Kenya’s geothermal future for decades.
Suswa: Kenya’s Next Great Geothermal Field
The Suswa geothermal field in Narok County represents the next major frontier in Kenya’s expansion strategy. Estimated to hold at least 750 MW of geothermal potential, Suswa is targeted for development beginning with an initial 300 MW project.
In January 2026, GDC began mobilizing drilling rigs from Menengai to Suswa, marking the transition of the prospect into active exploration. In March 2026, the National Treasury’s Public-Private Partnership (PPP) Unit approved the project’s concept note, clearing the way for feasibility studies. By May 2026, GDC had received formal clearance to proceed with a feasibility study for an initial 50-100 MW first-phase development. GDC aims to attract investors to develop Suswa plants by June 2027.
Baringo-Silali: Drilling Progress and Future Power Generation
In the Baringo-Silali region, GDC has already drilled wells capable of generating up to 70 MW, with plans to increase this to 100 MW by year-end. The project is currently in pre-construction, with GDC planning to invite IPPs to build power plants at the field. Electricity from these plants is expected to be sold to Kenya Power at rates between Sh8 and Sh10 (six to seven US cents) per unit. GDC has already delivered 24 wells in the Baringo-Silali project, paving the way for another 105 MW power plant.
Other Prospects: Bogoria and Paka
The Bogoria-Silali region continues to receive significant investment, with a budget allocation of KES 2.8 billion for exploration and drilling in 2025. The nearby Paka geothermal prospect remains in pre-construction as part of the broader Baringo-Silali development corridor. While Bogoria is famous for its natural hot springs and geysers—with over 200 hot springs reaching temperatures exceeding 94°C—its commercial geothermal potential remains under evaluation.
Part Four: The 2030 Vision — Targets, Investments, and Strategy
Kenya has set an ambitious target to more than double its geothermal capacity from 940 MW to 1,824 MW by 2030, adding over 800 MW of new geothermal generation in less than a decade. This expansion is a cornerstone of the government’s commitment to transitioning to a 100% clean energy grid by 2030.
Draft National Geothermal Strategy 2026–2036
The Ministry of Energy and Petroleum has drafted a comprehensive National Geothermal Strategy 2026–2036, outlining specific targets and the legislative and market reforms needed to achieve them. The strategy recognizes that public financing alone cannot meet future power needs and proposes measures to de-risk private investment in exploration and drilling—the most capital-intensive stages of geothermal development.
The Energy and Petroleum Regulatory Authority (EPRA) is finalizing the Draft Geothermal Resources Regulations 2026, designed to streamline permitting and licensing processes while ensuring environmental, health, and safety compliance. These regulations are pivotal to promoting responsible geothermal development at scale.
Kenya’s Least Cost Power Development Plan (LCPDP)
The LCPDP identifies geothermal as a key resource for providing reliable baseload power with comparatively low production costs. Geothermal is projected to account for 47.3% of Kenya’s total electricity generation mix by 2030, reflecting its central role in meeting rapidly rising demand—which is growing by 100 to 120 MW per year.
Part Five: Financing the Expansion — Public-Private Partnerships and Multilateral Support
The Role of Development Finance
A significant financing facility has been extended to GDC for developing the Menengai steam field. Additionally, a loan to OrPower 22 for the Menengai III plant was approved in November 2025 and finalized in January 2026. The OrPower 22 plant will sell electricity to Kenya Power under a 25-year Power Purchase Agreement (PPA) , underscoring the importance of long-term off-take arrangements in attracting private capital.
Attracting Private Investment
To accelerate expansion, the government is targeting significant private sector participation. The draft National Geothermal Strategy includes proposed tax exemptions aimed at keeping wholesale geothermal power prices below KES 9 per kWh (approximately $0.07/kWh), ensuring that the benefits of low-cost generation are passed to consumers.
Private off-take agreements have also been signed to utilize geothermal steam from Olkaria and Menengai for green ammonia production and cement manufacturing, opening new industrial use cases for geothermal energy.
Part Six: The Rise of Green Industrialization — Fertilizer, Ammonia, and Beyond
One of the most transformative developments in Kenya’s geothermal sector in 2026 extends beyond electricity generation. The country is emerging as a pioneer in green industrial applications of geothermal energy.
Kaishan Group is developing a green ammonia fertilizer plant in Olkaria, combining a 165.4 MW geothermal power generation system with a fertilizer production facility targeting 480,000 tonnes per year of fertilizer output. KenGen will supply geothermal steam to power the plant’s electrolyzers, which produce hydrogen for ammonia and calcium ammonium nitrate production.
The project is expected to:
· Reduce over 600,000 tons of carbon dioxide emissions annually—equivalent to removing 130,000 petrol- and diesel-powered vehicles from the road.
· Create more than 2,000 jobs in geothermal, hydrogen, and green industrial technology.
· Recapture non-condensable gases from geothermal steam to produce carbon dioxide for the fertilizer plant.
Chinese electrolyzer manufacturer Sungrow will supply 80 MW of electrolyzers for the project, highlighting the growing role of Chinese technology in Kenya’s green energy transition. The project has received approval from China’s National Development and Reform Commission, signaling strong bilateral support.
Part Seven: Economic and Strategic Implications
Affordable Electricity and Industrial Competitiveness
Geothermal power is among Kenya’s cheapest electricity sources. New geothermal power entering the grid in 2026 is priced at an average $0.069 per kWh (Sh8.9) —the third cheapest source after local hydropower (Sh3.83 per kWh). The Ministry of Energy is actively seeking tax breaks to keep geothermal tariffs below $0.07 per kWh, aiming to reduce overall electricity costs for homes and industries.
These low tariffs are critical to Kenya’s industrialization agenda. Manufacturing-intensive sectors that rely on stable, affordable power stand to benefit directly from geothermal expansion. Moreover, regions connected to geothermal sources, particularly around Olkaria, experience lower cost increases compared to areas dependent on thermal or imported power.
Climate Resilience and Baseload Security
Unlike hydropower—which is increasingly vulnerable to climate variability and drought—geothermal energy is weather-resistant and provides stable, dispatchable baseload power. This resilience has made geothermal the cornerstone of Kenya’s long-term energy security strategy. As climate change intensifies drought cycles in East Africa, geothermal’s reliability becomes an increasingly critical national asset.
Regional Leadership and Energy Exports
With over 1 GW of installed capacity in 2026, Kenya is the eighth-largest geothermal producer globally and undisputed leader in Africa. The country is also expanding power imports from Ethiopia (targeting 400 MW by December 2026), positioning itself as a regional energy hub. However, Kenya’s own grid capacity is under strain, with peak demand reaching 2,316 MW amid rapid electrification. Expanding geothermal capacity is essential not only for domestic needs but also for enabling future power exports to neighboring countries.
Part Eight: Challenges and the Path Forward
Operational Bottlenecks
Despite ambitious plans, the sector faces real-world challenges. The Globeleq Menengai plant delay due to steam supply constraints from GDC illustrates that infrastructure coordination between state-owned developers and private IPPs remains a hurdle. Addressing these operational bottlenecks will be essential to maintaining investor confidence.
Funding Disputes and Project Timelines
Olkaria VII’s progress has been slowed by a dispute over consultancy tenders. Resolving such disputes efficiently will be critical to keeping flagship projects on track for the 2030 target.
Regulatory Implementation
While the Draft Geothermal Resources Regulations 2026 and the National Geothermal Strategy provide a sound policy framework, translating these documents into streamlined, predictable permitting processes on the ground will determine whether Kenya can attract the estimated billions of dollars in private investment needed to reach 1,824 MW.
Conclusion: A Nation Forged by Fire and Steam
Kenya’s geothermal sector in 2026 stands at a remarkable inflection point. With the Menengai field reaching its 105 MW first-phase completion, the Olkaria I rehabilitation adding 63 MW, and the 80.3 MW Olkaria VII project advancing, the country is on the cusp of surpassing 1 GW of installed geothermal capacity—a milestone that places Kenya among the world’s elite geothermal nations.
Yet the true story is not merely about megawatts. It is about a comprehensive national strategy that integrates geothermal into the fabric of economic development: powering industries, producing green fertilizer, creating thousands of jobs, and providing climate-resilient baseload electricity to millions of Kenyan homes and businesses.
As Suswa moves from exploration to feasibility, as Baringo-Silali prepares to invite IPPs, and as green ammonia production emerges as a transformative industrial application, Kenya is demonstrating that geothermal energy is not just a power source—it is a platform for sustainable industrialization, energy security, and climate leadership. The steam rising from the Rift Valley is powering more than turbines; it is fueling a nation’s future.
See also: New Zealand's Progress on Supercritical Geothermal Forges Ahead with $60 Million Government Backing
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