Geothermal Development Company signs deal for extra geothermal power

A steam well drilled by the Geothermal Development Company (GDC) at Menengai. FILE PHOTO | BILLY MUTAI |  NATION MEDIA GROUP

In Summary

• The deals will see the GDC supply steam to three firms.
• This is expected to increase national installed capacity for generation from renewable sources by 10 per cent.

By NATION REPORTER
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The Geothermal Development Company on Thursday signed agreements with three independent power producers for generation of electricity at Menengai in Nakuru.

This will add to the existing capacity from the Olkaria fields.

The deals will see the GDC supply steam to the firms, which are, in turn, expected to deliver 105 megawatts of power from the project by the end of next year.

The firms are Quantam Power East Africa, Orpower Twenty Two and Sosian Energy.

Each of the IPPs will construct a 35-megawatt geothermal power plant.

This is expected to increase national installed capacity for generation from renewable sources by 10 per cent.

“This is a major milestone in the history of geothermal energy in Kenya and globally. Today, we have firmed up a new unique model that will see Kenyans enjoying affordable power from geothermal resources,” company chief executive Silas Simiyu said.

It comes a week after the board of directors of the African Development Bank approved a Sh1.1 billion partial risk guarantee for the project.

The guarantee will cover power producers incase GDC and Kenya Power, which is supposed to purchase electricity from the firms, fail to honour their obligations.