GDC looks to raise $350 million for Silali and Suswa development
Valley view at Suswa, Kenya (source: flickr/ Wajahat Mahmood, creative commons)
Francisco Rojas
18 Nov 2014
The funds required would go towards steam field development; $100 million for the Silali project and $250 million for the Suswa project, according to GDC Managing Director Silas Simiyu.
Local news detail that Kenya’s Geothermal Development Company (GDC) is seeking 350 million U.S. dollars towards steam field development in Silali and Suswa areas in northwest region.
“We are seeking 100 million dollars and 250 million dollars towards steam field development in Silali and Suswa respectively with negotiations at an advanced stage,” GDC Managing Director Silas Simiyu said in Naivasha on Wednesday, adding the funding would be made by government and development partners.
Simiyu noted that the country has 14 geothermal sites that have a combined potential of about 10,000MW. “Eight of these geothermal sites are being developed and they include Olkaria, Eburru, Menengai, Suswa, Longonot, Akiira and the Baringo-Silali block.”
Simiyu said the government had invested more than 67 million dollars in steam field development in Olkaria area. In Menengai, he noted that the country had already purchased seven drilling rigs and development of 115MW.
Simiyu, who was speaking during the ongoing short course on geothermal exploration in Lake Naivasha Country Club in Naivasha, noted that the government has adopted several models of geothermal development based on the desire to de-risk exploration and make sure electricity developed was competitively priced.
Under the model, the GDC undertakes exploration and drilling to harness steam which is later offered to independent power producers to convert it into electricity.
“This model has proven to be very popular with investors due to its low-risk nature and already three Independent Power Producers (IPPs) have signed with GDC,” he said.
Simiyu noted that under the model and the signed contract, the three Independent Power Producers (IPPs) would generate 105MW from Menengai. He added GDC would also drill the first three exploration wells and then partner with IPP at a ratio of 40 percent for GDC and 60 percent for the IPP.
Simiyu noted that earlier geothermal development in the country has been marked by long gestation with some of the power stations taking more than 15 years to fully operate.
Source: CoastWeek
