The recent landmark deal between Kenya and Tanzania to collaborate on geothermal exploitation is stirring optimism among entrepreneurs over the possibility of increased business opportunities in alternative power across the region.
"It is a huge investment opportunity for mechanical and civil engineers, electricians and geologists, just to mention a few," said Isaac Kiva, director of renewable energy at Kenya's Ministry of Energy.
The two countries signed the bilateral agreement in Nairobi on August 9th. Under the deal, Kenya's state-owned Geothermal Development Company (GDC) will provide Tanzania with technical expertise and training in geothermal power production to help to develop this alternative energy sector.
Geothermal energy comes from natural heat stored within the Earth that can manifest on the surface in the form of hot springs that can be tapped for electricity production, according to the Kenya Electricity Generating Company (KenGen).
The bilateral partnership is to begin in October, Kiva told Sabahi.
"Before geothermal fields are opened up for drilling, civil infrastructural works such as roads, electricity and water connectivity must be put in place," he said. "This, therefore, presents a golden opportunity for Kenyan firms to bid for business in an environment with little competition because of the bilateral trade nature of the agreement."
Kenyan companies to profit from the deal:
Kenyan firms stand to profit from supplying geothermal plant components, while an established company like the GDC could bid for a licence to develop exploration sites as well as bid to build geothermal power plants in Tanzania, Kiva said.
Tanzania boasts East Africa's longest volcanic rift, but it has not yet exploited sources of geothermal energy that lie there. The country has at least 50 sites with the potential to produce 650 megawatts of power, according to a November 2012 Status Report by the Geological Survey of Tanzania.
"Like the rest of East African Community member countries, Tanzania is desperately looking for alternative sources of power to fuel its growing commercial and domestic energy demands," said Jamleck Kamau, a Kenyan lawmaker who chairs the National Energy, Communication and Information committee. "We agreed to help Tanzania set up the right regulatory framework for geothermal exploration and development."
