GDC hands over sites to three private developers at Menegai
Discharging Well, Menengai Geothermal Field, Kenya (source: flickr/ GRC, creative commons)
Francisco Rojas
2 Dec 2014
These three investors (Sosian Energy, Quantum East Africa and OrPower 22) were selected through competitive bidding last year and will build, operate and own the first three power plants in Menengai, each generating 35 MW of geothermal power
Geothermal energy will soon provide big savings to the local population in Kenia. To develop this further, the Kenya government is trying to foster the development of new projects and accelerate existing ones to add more reliable power to the grid at a lower cost, by phasing out fossil fuel generators that are incredibly costly to run.
According to local news, GDC in Kenya has proceeded to handle over “power plant sites to three Independent Power Producers (IPPs) – Sosian Energy, Quantum East Africa and OrPower 22”. This aims to provide more confidence and speed the current projects.
The same source states that “the three investors selected through competitive bidding last year will build, operate and own the first three power plants in Menengai, each generating 35 megawatts of geothermal power. GDC Managing Director Silas Simiyu said, during the handing over of the sites, that the completion of the 105 MW plants will save the country about Sh13 billion annually as fuel levy. He noted that the construction work would have started in October last year, to be completed end of this year. However, the project delayed due to lengthy negotiations to sign a Power Purchasing Agreement (PPA) with Kenya Power too long. “It takes too long to negotiate the PPA with Kenya Power and more so, based on the fact that it was the first of its kind in the generation and management of geothermal power in the country. The PPA was signed sometimes this year and construction will start soon,” said Dr Simiyu. He explained that GDC will continue drilling geothermal wells to harness steam and offer the same to IPPs for energy generation.
In Menengai alone, he said GDC has mined steam equivalent to 110MW, which is enough for the first phase of the Menengai Project. “In total, GDC has more than 500MW of steam in both Menengai and Olkaria from a total of 85 geothermal wells.” National grid Quantumpower East Africa business development Director David Carroll, assured that the construction of the power plants will be completed on time. GDC started drilling in the Menengai field in February 2011, and by December next year, the three power plants to be constructed next to each other, will generate 105MW, which will then be connected to the national grid within five years. To supply steam to the three power plants, the GDC boss said the company has contracted H Young to construct a steam gathering system whose construction is underway. The pipeline will gather steam from the different wells and deliver it to a central point, from which each IPP will be billed for the steam as consumed. Dr Simiyu assured that the company is fast-tracking the process so that the projected power output can be connected to the national grid by end of next year. “This milestone makes Menengai the fastest developed geothermal field in the world. No other geothermal project in the world has been actualised within five years. To this end, GDC is excited,” said GDC board chair Faisal Abass.”
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Source: Standard Digital News Kenya
