GEOTHERMAL DEVELOPMENT IN KENYA: STATUS,
PLANNED ACTIVITIES AND REQUIRED SUPPORT
Geothermal Donors Coordination Meeting
Reykjavik, Iceland, May 26 2014
Dr. Peter Omenda
Kenya Power Sector Overview
Ministry of Energy and Petroleum
ERC
Energy Tribunal
KenGen Imports IPPs REA
GDC –steam resource
development
KETRACO – Transmission /Wholesale Market operator
KPLC – Distribution/Supply
Customers
Geothermal areas in Kenya
• The high temperature geothermal prospects in Kenya are associated with Quaternary volcanoes in the axis of the rift
• Possible resource capacity is estimated at 10,000MW
Status of Geothermal Generation
45MWe Olkaria I Power station
105 MWe Olkaria II Power station
PLANT
Olkaria I (3 UNITS X 15 MW) 45 MW
Olkaria II (3 UNITS X 35 MW) 105 MW
Olkaria III 110 MW
Oserian (TWO UNITS)* 4 MW
Eburru 2.5 MW
Olkaria (Wellhead) 30.5 MW
110 MWe Olkaria III Power station
293 MW
• Development of 460MW by 2016 is in phases as follows;
Menengai Project
Project Size Commissioning
460MW MENENGAI
100MW 2015
60MW June 2015
100MW Dec 2015
100MW June 2016
100MW Dec 2016
Prospect potential – 3,000 MW:
• 200MW Phase 1 to be commissioned by December 2016;
• Euro 80 million – KfW for steam field development
• US$ 6 million – geothermal risk mitigation fund for Infrastructure exploration drilling (including continuation premium).
BARINGO-SILALI PROJECT
Project Size Commissioning
200MW Baringo-Silali 200MW June 2016
• Field potential of 600-750MW
• Development of 150MW by 2016 to be developed in phases as follows;
• 200MUSD pledged from India Exim Bank
• Detailed Surface study completed early 2013
• ESIA license for drilling awarded
SUSWA PROJECT
Project Size Commissioning
150MW SUSWA 150MW June 2016
Olkaria Geothermal Projects-2014
Field Installed Capacity (MW)
Commissioning date
Olkaria Field
Olkaria IV 140 2014
Olkaria I, Unit 4&5 140 2014
Olkaria I unit 6 70 Production drilling, 2015
Olkaria Wellhead 70 Production drilling, 2016
Olkaria 5 140 Production drilling
Olkaria 6 140 Production drilling
Akiira One Phase 1 70 2017
AGIL, Longonot, Ph 1 70 2017
MENENGAI PROJECT-Status update
Drilling
• 80MW on wellhead
• Feasibility Study - completed
Steam gathering system • Steam gathering system for the 100 MW under
construction
Transmission Line
• Transmission line under construction
Field potential of 600-750MW
• 200MUSD pledged from India Exim Bank
• GDC has invited joint equity investors to develop the steam field with GDC
SUSWA PROJECT
Project Size Commissioning
150MW SUSWA 150MW June 2016
Geothermal Activity
Financing Options
Govt. Capital
Market DFIs
Com-
mercial
Banks
Vendor
Fin-
ance
Joint
Ven-
tures
Op-
erator/
Owner
funds
PPPs
A Resource Exploration (Risk Mitigation)
A.1 Prospecting
A.2 Detailed Surface Exploration
A.3 Exploration Drilling & Well Testing
B Resource Assessment (Risk Mitigation)
B.1 Appraisal Drilling
B.2 Feasibility Studies
C Power Plant Development & Operations
C.1 Production Drilling & Well Testing
C.2 Environmental & Social Impact Assessment(ESIA)
C.3 Steam Field Development
C.4 Substation & Transmission Line Development
C.5 Power Plant Construction/Early Generation
C.6 Resource Management (Operations) & Further
Development
OPTIONS ON FINANCING GEOTHERMAL DEVELOPMENT
1 2 3 4 5 6 7 8
955
17,615
Admin- stration
685
Consul-
tancy
500
Substation &
Transmission
585
Power Plant
6,600
Steam Field
2,810
Drilling
5,480
Total Interest During
Construction
US$ million
Approximately US$ 18 billion
required to develop the
projected 5GW of geothermal power
by 2030
ESTIMATED INVESTMENT IN GEOTHERMAL BY 2030
Project Name Capacity/No Approx Amount (MUSD)
Date due
Olkaria 7 plant 140 500 2016
Olkaria 8 plant 140 500 2016
Production drilling 80 Wells 480 2016
Steam gathering system – Olkaria 7
49 2016
Steam gathering system Olkaria 8
49 2016
Feasibility studies Olkaria 7 and 8 4 2016
Transmission - Olkaria to Suswa sub station
2016
Projects and Support-KenGen
Project Name Capacity/No
Approx Amount (MUSD)
Date due
Menengai:
Menengai II – steam gathering
60MW 21 2015
Menengai III- steam gathering
100MW 35 2016
Menengai IV - steam gathering
100MW 35 2016
Menengai V - steam gathering
100MW 35 2016
Feasibility studies for plants III-V
8
2016
Projects and Support-Menengai
Project Name – Baringo Silali
Capacity/No Approx Amount (MUSD)
Date due
Production drilling 30 wells 180 2016/17
Steam gathering system 200MW 70 2016/17
Feasibility study 2 2016/17
Transmission line Silali - Rongai
65 2016/17
Projects and Support-Silali and Suswa
Project Name-Suswa Capacity/No Approx Amount (MUSD)
Date due
Exploration, Appraisal & Production drilling
35 wells 210 2016/17
Steam gathering system 150MW 52.5 2016/17
Feasibility study 2 2016/17
Transmission line to Suswa Substation
3.6 2016/17