Kenya on Tuesday launched a facility to boost investments in geothermal energy projects in East Africa.
Godfrey Kiptum, commissioner-general of the Insurance Regulatory Authority of Kenya, told journalists in Nairobi, the capital of Kenya, that the Geothermal Risk Underwriting Facility is a comprehensive program aimed at leveraging local insurance capital to de-risk renewable energy projects and catalyze private investment in the sector.
"Kenya has established a joint underwriting facility, backed by East African insurers, designed to cover early-stage development drilling risks for investors in geothermal projects," Kiptum said at a forum on geothermal development and investment.
The day-long event brought together key stakeholders in Kenya's geothermal sector, including government representatives, private sector developers, financial institutions and development partners to discuss challenges associated with financing, risk mitigation, regulatory frameworks and technological advancements.
According to the Ministry of Energy and Petroleum, Kenya currently generates about 985 megawatts (MW) of geothermal power out of an estimated potential of about 10,000 MW.
Chrispin Lupe, head of the Geo-Exploration Directorate at the Ministry of Energy and Petroleum, said that the facility also provides for technical capacity development for East African insurance sector stakeholders to enhance their ability to underwrite and manage renewable energy risks.
Lupe noted that the facility will also help regional governments through advocacy and technical assistance to adapt regulatory frameworks to better support the unique needs of the renewable energy sector.
Editor:Galia
