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Geothermal Resource License: (Geothermal power projects only)

Geothermal projects must be licensed by the Ministry of Energy and Petroleum. The license allows an exploration phase of not exceeding five years and if at the end of that period no geothermal resources of a potential commercial interest is discovered the Minister requires the investor to surrender the licensed area. The Geothermal Resources License includes negotiated annual rents and royalties for the use of the resources. The rents and royalties are negotiated between the licensee and the Ministry of Energy and Petroleum. There are three phases from the issuance of the license: exploration phase (max. 5 years), appraisal phase (max. 12 months) development and production phase (max. remaining years of license – 30 years). Each phase has to be approved by the Minister. The exploration phase can also be covered by an Exploration Authority, which is described earlier. If sufficient geothermal resources are discovered, the licensee must submit an appraisal program to the Minister for approval. After approval, the licensee has 12 months to submit to the Minister a development and production program.

Details

  • Purpose: Control geothermal exploitation
  • Application Fee: None
  • Clearance Fee: Kshs, 120,000
  • Maximum Processing Time: 14 days
  • Validity: 30 years
  • Clearance Type: License
  • Legal Basis: Geothermal Resource Act 1982 and Regulations 1990
  • Annual Renewal: Application for renewal should be made not later than 12 months before expiry of the license with no fee

Investor Inputs

  • Informal letter of request to the Ministry
  • Particulars of the company and its directors
  • Statement of expertise of the company
  • Plan, description and coordinates of the area
  • Terms of license requested
  • Employment and training proposal for the locals and citizens
  • Infrastructure needed for approval of the development and production program
  • Date by which the applicant intends to commence production
  • Capacity of production envisaged
  • Marketing arrangements including details of PPA
  • Proposals for the protection of the environment
  • Statement of any adverse effects
  • Technical report on the proposed geothermal power plant
  • Detailed forecast of capital investment, operating costs and sales

Downloadable

Issuing agency