By Antony Gitonga

Nairobi,Kenya:The plant is expected to generate the  first 70MW of power by end of this year at Sh5.80 per unit compared to the current price of Sh8.30

Works at  the geothermal power plant in Olkaria, Naivasha are fifty per cent complete with the first 70 megawatts (MW) expected by December this year.

According to KenGen Managing Director Eddy Njoroge, works in the 280 MW plant which will cost $1 billion (Sh83.5 billion) will be complete by September 2014 as projected.

Njoroge said this will be the cheapest power project in the country at a cost of seven US cents (Sh5.80) per unit compared to the current 10 US cents (Sh8.35). “We expect the first 70MW by December 2013, another 70MW by March 2013 and the rest by June before the official take over in September 2014,” he said last week. Geothermal power has been dubbed as the next mode of energy with hydro-power turning out to be unreliable.

Njoroge added that the power output from the plant could rise to 350 MW as the steam from the current exploration had surpassed their estimates. “Power production from Olkaria could rise to 350 MW from the projected 280MW and we are in talks with our financiers so that we can use the excess funds,” he said.

Installed capacity

He noted that the steam turbines have arrived, adding that once complete the project will meet 25 per cent of the country’s power demand by 2015. The KenGen boss observed that the country’s current installed capacity is 1,300MW with hydro leading at 800 MW while geothermal stands at 210 MW. Njoroge said plans were underway to explore more power from the 204 square kilometre geothermal licensed areas in Olkaria.

He said works are on schedule, adding that some of aspects of the project so far completed include a 10 Km access road for the project; construction of the 33kV Power line to the project; waterline and tanks at Olkaria IV,  37 steam wells with a capacity to generate over 308MW of power among others.

Sinopec International Petroleum Company Ltd of China ,a  Consortium Toyota Tsusho Corporation of Japan and Hyundai Engineering Company Ltd of Korean and   KEC International of India are handling the works. 

 Njoroge said the construction of housing and social amenities for the resettlement of those affected by the project has also commenced. KenGen has already acquired 1,700 acres for resettlement action plan, which will cost $15million (Sh1.252 billion).

The Company will also construct three roomed permanent houses for all the families involved complete with bathrooms and a kitchen. Last week a planned ground breaking ceremony in the new land was called off after members of the Maasai demanded an MoU with KenGen.

Some of the demands they are making include scholarships, pasture land, employment and new land for a cultural centre. “We shall build 164 houses for 110 families though we are doing another census to establish if the numbers have changed,”  assured Njoroge.