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GDC’s third power plant in Nakuru to boost energy mix

The power plant is the third and last power plant in the 105 MW Menengai Geothermal Project

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by STAR REPORTER

Realtime25 October 2024 - 11:55
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In Summary


  • The groundbreaking ceremony was presided over by His Excellency Dr. William Samoei Ruto, C.G.H., President of the Republic of Kenya and Commander-in-Chief of the Defence Forces.
  • The President further reiterated the viability of the nexus between green energy and economic development.

President William Ruto is taken through dynamics of geothermal harnessing at the Geothermal Development Company shortly before he broke ground for the construction of a 35-MW Power plant at the Menengai Geothermal Project, Nakuru County, on October 24, 2024 (PHOTO: PCS)



Kenyans are expected to enjoy more cheaper and reliable green power from the GDC’s Menengai Geothermal Project, in Nakuru County following the groundbreaking for the construction of a new 35 MW powerplant.

The power plant, to be constructed by Orpower Twenty-Two, is the third and last power plant in the 105 MW Menengai Geothermal Project which is owned by the Geothermal Development Company (GDC) - a state corporation.

The groundbreaking ceremony was presided over by His Excellency Dr. William Samoei Ruto, C.G.H., President of the Republic of Kenya and Commander-in-Chief of the Defence Forces.

“The commencement of this project to establish a 35MW power plant by Orpower Twenty-Two highlights our commitment to unlocking Kenya’s vast geothermal potential to drive economic growth. It is also a clear demonstration of our strength in mobilising private sector investment to develop critical infrastructure and provide essential services, thereby accelerating economic transformation,” the President said.

The President further reiterated the viability of the nexus between green energy and economic development.

“The completion of the 105MW Menengai project will elevate Kenya’s global ranking to 5th overall, establishing beyond all contestation that economic growth and clean energy development can go hand in hand,” he quipped.

Orpower Twenty-Two will invest $90 million in this project on an arrangement of Build Own Operate basis.  The power plant will take 14 months to construct.  The geothermal power plant promises to provide affordable reliable and green energy to the grid. The power producer will buy geothermal steam from GDC to generate the power. The project is expected to be completed in mid-2026.

Menengai is a greenfield geothermal project and part of the first phase of the wider Menengai complex. 

In this arrangement, GDC will supply geothermal steam to the IPP under a 25-year project implementation and steam supply agreement.

Geothermal Power from Menengai costs about KES 8/ kWh compared to fossil fuel-generated power which costs KES 22/kWh.

“Given the continually rising fossil fuel prices and the intensifying threat of climate change, investing in renewable energy is efficient, prudent, and sustainable. This is precisely what we are doing with geothermal energy. Upon completion, this plant will generate affordable power at KSh8 per kWh, significantly lower than the cost of fossil fuel alternatives,” the president observed.

On his part, Paul Ngugi, the GDC Managing Director and CEO hailed the business model deployed at the Menengai project.

The groundbreaking of the third power plant at Menengai Geothermal Project is a milestone for GDC and Kenya. It’s also an affirmation of the workability of our innovative paradigm of derisking geothermal fields and making them bankable for private investment. The third powerplant brings to completeness the Phase I of the Menengai Geothermal Project which will generate 105MW of affordable, reliable and green energy,” noted Ngugi.

The other two IPPs at Menengai are Sosian and Globeleq. Sosian is ahead of the rest. It started to generate 35MW of geothermal power late last year. Glebeleq broke ground in June 2023. Its 35MW power plant is under construction.

In its quest to accelerate the development of geothermal energy in Kenya, GDC is also drilling for geothermal steam at Paka and Silali geothermal fields in Baringo county. At Paka, GDC has harnessed 75MW of geothermal steam. The company targets to have a 105 MW power plant at Paka by 2027. Similarly, GDC has started to open the Suswa field.

The president challenged GDC to take leadership in driving Kenya towards energy transition.

“I urge the Geothermal Development Corporation (GDC) to develop and sustain a high capacity to offer effective leadership in driving Kenya's energy transition,” Ruto said.


                                                                                                                                         


 


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