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GDC to increase partnership efforts for geothermal development in Kenya

Wellhead plants of British Green Energy Geothermal (GEG) at Olkaria, Kenya (source: GEG/ Lydur Skulason)
Alexander Richter Alexander Richter 13 Mar 2017

Following its partnership approach to the development of Menengai Phase 1 and private sector taking over power plant development, GDC now aims to increase efforts to partner with the private sector for geothermal development.

Kenya’s Geothermal Development Company (GDC) has announced plans increase efforts to partner on steam development. The company aims to speed up geothermal development for power generation.

For the 105 MW Menengai Phase 1 Project, GDC has already applied that model. Under the model, GDC is taking over the drilling and steam development, while the private sector is then taking over the construction and operation of geothermal power plants. With this approach, it is aimed to speed up development and take the up-front risk to make it easier to attract financing for the development of plants.

In an interview with the Daily Nation in Kenya, Company managing director and chief executive Johnson ole Nchoe said: “The steam development model has been proven in the faster conclusion of the 320MW Olkaria I & IV geothermal project where GDC developed the steam field through grants and concessional loans and availed 412MW of steam at the well-head.

Earlier projects in Kenya have taken a long time and the GDC approach is to change that.

With steam supply developed by GDC for KenGen for two geothermal power plants with a power generation capacity of 280 MW and several wellhead power plants, GDC derives an income of Sh3 billion annually ($29 million)

 

When the development of the three private power plants at Menengai is finished, GDC expects an additional annual revenue of Sh1.7 billion. Within that period, they will be paying GDC an estimated annual revenue of Sh1.7 billion ($16 million).

All three projects in Menengai are at an early stage. While Quantum Power is clearing ground, Sosian Energy and OrPower 22 are about to move to site for preparations of groundbreaking. GDC will remain in an ownership position of the wells and steam output.

 

Source: Daily Nation