Kenya to award three licenses to private developers
Discharging Well, Menengai Geothermal Field, Kenya (source: flickr/ GRC, creative commons)
Alexander Richter
26 Mar 2014
Kenya to award three new private geothermal development licenses. Companies that are named are Geothermal Development Associates, Quantum Power and Ormat Technologies.
At the recent Board Meeting of the International Geothermal Association (IGA), Kenya’s Energy Cabinet secretary Davis Chirchir announced that there will be new development licenses to be issued to three private investors.
He named Geothermal Development Associates, Quantum Power and Ormat Technologies as the recipients.
Mr Chirchir said two other corporations Schlumberger and Baker Hughes have already set up shop and are providing technical support to fast-track geothermal development.
The investors will join Orpower IV, Oserian Development Company and Africa Geothermal International Limited, Marine Power Inc, the existing private prospectors, alongside the state-owned KenGen and the Geothermal Development Company, which are exploiting the resources, at Olkaria and Menengai fields.
Quantum Power of Finland is among bidders that have been short listed in the country to build coal and Liquefied Natural Gas plants as energy policy makers move to attract investment in the country’s extensive geothermal resources.
Ormat Technologies, a US firm, designs, builds, owns and operates geothermal power plants in the United States, Nicaragua, Kenya and Guatemala. As of February 2011, the company had installed a generation capacity of 553 megawatts.
Government is committing a substantial amount of resources into building up its geothermal infrastructure, with investors expected to partner with GDC in upcoming projects at Menengai and Olkaria that are being implemented through Public Private Partnerships. GDC is developing the steam resource at four primary areas Menengai, Bogoria, Silali and Suswa).
The government is also planning on partnering with Independent Power Producers to sell geothermal steam/brine at the plant, for use by the IPPs to convert the resource to energy, through a power conversion contract.
GDC is also evaluating potential joint development agreements with private developers to help develop the new steam fields. The Government is encouraging private development of additional resource areas through concession agreements with private IPPs.
“Investments in geothermal energy guarantees investors significant returns,” said Chirchir, adding that the alternative energy is expected to play a key role in the Government initiative to provide an additional 5,000 MW by December 2016.
Source: Daily Nation
