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.