KenGen Commissions its second wellhead

KenGen this January 2014 commissioned its second wellhead generating set.  The set has a gross capacity of 12MW.  The unit was initially delayed commissioning due to delays in construction of a 33kV transmission line from the unit to the market.

Orpower 4 Inc installation reach 110MW

Orpower 4 inc, a subsidiary of Ormat Technology has now commissioned its Plant 3 achieving a total installed capacity of 110MW at Olkaria III site in Kenya.  Plant 1 is 48MW and Plant 2 and 3 are each  36MW. This is a major achievement for Ormat who did not believe they could obtain this capacity when they were issued with the licence in mid 90s.  With this success, Ormat is thinking of expanding its operations within Kenya and in the region.

GDC Looking for a developer for Suswa Project

Geothermal Development Company (GDC) plans to accelerate the development of geothermal energy in Kenya by undertaking geothermal development at Suswa Prospect. Detailed surface studies comprising of geology, geophysics, surface heat measurement, baseline environmental and social economic assessment of the prospect  has been done the field potential is estimated at about 750 MW.

The current project aims to realize about 300 MW between year 2016 and 2018.

GDC has called for EOI with the intention of engaging investors/partners who will get the opportunity to jointly together with GDC develop the steam field.  Thereafter the investor will install the first 100MW at the site with others to follow thereafter.

Under this project, GDC will obtain all land rights, permits and undertake construction of the road network, drilling water reticulation system, drilling of exploration and appraisal wells to confirm presence of the resource. In addition, jointly with the selected partners, GDC will undertake all the remaining drilling works (production and re-injection), feasibility study(s) and construction of the necessary steam gathering and reinjection network. GDC’s investment will comprise a total of 20% to 40% of the required capital for this development phase or as may be agreed between the parties.

After power plants commissioning by the development partners, GDC will be responsible for reservoir management and the brine reinjection system.

The Investors, under a joint steam development contract, will finance between 60% and 80% of the require capital for the steam development. The investors will recoup their investments through regular payments made from revenue generated through steam sales in a manner to be negotiated and agreed  over a period of 20 years or any other agreed period.

Further, the Investors will finance, design, construct, operate and maintain the power plants. While steam field is under development, the investor will have the opportunity to install wellhead generation units for early power generation.

This EOI closes on February 20, 2014.