Geothermal handbook: PlanninG and Financing power Generation t e c h n I c a L r e p o r t 2 / 2

in kenya,
the most significant measure to promote private or community supply companies has been 
the Feed-In-Tariffs Policy on geothermal, solar, wind, biomass, and small hydropower of January 2010. 
The stated objectives of the Kenyan FIT system are to: facilitate resource mobilization by providing 
investment security and market stability for investors in electricity generation from Renewable Energy 
Sources; reduce transaction and administrative costs and delays by eliminating the conventional 
bidding processes; and encourage private investors to operate their power plants prudently and 
efficiently so as to maximize returns (GoK 2010).
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Kenya’s Geothermal Feed-In-Tariff
• The Kenyan feed-in-tariff for geothermal power is defined as a fixed tariff not exceeding US$ 0.085 per
kilowatt-hour of electrical energy supplied in bulk to the grid operator at the interconnection point. 
• This tariff will apply for 20 years from the date of the first commissioning of the geothermal power
plant.
• This tariff applies to the first 500 MW of geothermal power capacity developed in the country under
this tariff policy.
• The tariffs applies to individual geothermal power plants whose effective generation capacity does not
exceed 70 MW.
Source | Ministry of Energy, Government of Kenya 2010.
indonesia
has taken a different approach, as set out in the MEMR Regulation No. 32/20099, which 
became effective in December 2009. Under the regulation, the price ceiling for geothermal power has 
been set at US$ 0.097/kWh. A price ceiling is not a FIT, and does not guarantee any particular price