Firm seeks more power from steam

The Geothermal Development Company (GDC) has invited bids from eligible firms for the supply and installation of three geothermal power plants at the multi- billion Menengai project in Nakuru County.

Successful investors are expected to finance, design, construct, and test the plants and upon completion in 2014, generate a total of 90MW of electricity to the national grid.

At the same time, according to the bid document by GDC, winners will be expected to operate and maintain the plant for a period of 25 years after which the lease agreement would be reviewed.

The 90MW is part of the 440MW phase one project of the Menengai project, which is set to be commissioned in the financial year 2016/2017.

The first phase of the initiative will cost the Kenyan Government nearly Sh42 billion, with the African Development Bank (AfDB) chipping in with Sh10 billion.

GREEN ENERGY

Kenya generates about 14 per cent of its electricity from geothermal sources with diesel-generated power accounting for 30 per cent and the rest from water sources.

“We want to increase green energy so that consumers can enjoy low electricity tariffs as one way of accelerating economic development in all sectors of our economy and that is why GDC is inviting bids at the Menengai geothermal project,” said the GDC manager in charge of public relations and communication, Ms Ruth Musembi.

According to the company, injection of the extra power to the national grid will be a big relief to consumers who have to endure erratic power supply due to increasing demand for both domestic and industrial energy.

“Fast-tracking the installation of the three power plants at Menengai geothermal project will address the expensive, erratic, and inadequate power supply for good,” said Ms Musembi.

She added that the generation of extra power from green energy would lower electricity tariffs by almost half, saying, “this is poised to happen within the next three years.”

Ms Musembi said once most of the GDC green energy projects are fully operational, thousands of electricity consumers, both domestic and industrial, will forget about foreign exchange (forex) and fuel cost adjustment charges.

The cost of electricity in Kenya is rising steadily and currently domestic consumers pay approximately Sh17 (19.78 US cents) per KWh but if GDC succeeds in its mission, consumers will soon start enjoying electricity tariff as low as Sh8 per KWh.

According to geologists, Kenya has the potential to generate 10,000MW from steam, with the Menengai project capable of generating 1,650MW when fully tapped.