GDC to focus primarily on steam development
GDC drilling site at the Menengai crater, Kenya (source: in2eastafrica.net)
Francisco Rojas
15 Sep 2014
GDC reports that it has adopted a new generation model where its primary focus is steam development which will then be sold to private power producers for electricity generation.
In a recent report to the Energy Committee of Kenya’s National Assembly GDC reports that it has adopted a new generation model where its primary focus is steam development, which will then be sold to private power producers to convert to electricity. This is expected to ensure GDC does not tie up its funding in building power plants when there are investors willing to do so.
Under this model, power plant investors will be assured of a 25-year steam supply from GDC while at the same time having a binding power purchase agreement with Kenya Power. GDC estimates that within 10 years of power production, an investor will have recouped the investment in a power plant, with the remaining 15 being profit years.
“This strategy will remove the risks that had been a deterrent to the private sector,” the firm said, adding that there are two power plants currently being built in Olkaria to generate 280MW using steam that it has developed.
And in one its biggest projects in Menengai in Nakuru, three contractors, Sosian Energy, Quantum Power East Africa and Ormat, will put up three power plants (each 35-37MW) to convert 100MW of steam into electricity. This power is expected to be connected to the national grid by December 2015. GDC has awarded H Young, a contractor, to design and build a steam-gathering system to supply steam to the three power plants.
The company has a target to deliver 810MW to the national grid by December 2016. This comprises 150MW from Suswa field, 200MW from Baringo-Silali block and 460MW from Menengai. Already 90MW have been confirmed in Menengai. GDC has also advertised for construction of another 60MW power plant.
With the bidding process for power plants taking more than a year in some cases, the power company said the new model of selling steam to investors rather than have them develop their own has helped reduce the waiting time by nearly half.
“There is change in the way geothermal is being developed in this country … by December, it is possible there will be 120MW,” Musembi said.
Source: Standard Digital Website
