State bets on geothermal energy as water shortage persists

Highly ignored in the past, geothermal power has now become a buzzword in energy circles. The state is banking on this renewable energy to spur economic growth. Standard’s Eric Wamanji talked to Dr Silas Simiyu, the CEO of the Geothermal Development Company.

QUESTION: What is Geothermal Development Company?

ANSWER: Geothermal Development Company (GDC) is 100 per cent State-owned Corporation registered under the Company’s Act to develop geothermal energy.

What is its mandate?

GDC was set up to facilitate faster geothermal development; to explore, drill, appraise and develop geothermal resources; map concession boundaries and offer competitive bidding for and administer concession contracts. After we have established the steam wells, we will concession them to either KenGen or independent power producers who will have to set up power plants. In the event that no investor is available, GDC will go ahead and set up the power plants and then feed the power to the national grid.

How was GDC formed?

Energy is key to achieving Vision 2030, which envisages Kenya becoming a middle income industrialised country. This requires about 7,000 MW of additional power. Geothermal will contribute 4,000 MWe. It can thus be seen that GDC as a vehicle to fast track the geothermal resources development process.

What are its activities?

GDC manages public resources such as rigs and other infrastructure required for faster geothermal development and facilitates development of human capacity in geothermal technology. GDC consults for geothermal energy, other geo-science, environmental studies and project management, market geothermal as environment-friendly and least cost power source.

What is the country’s potential in geothermal resources?

We have an enviable geothermal resource cutting along the rift valley, estimated at 7000 to 10, 000 MWe. This is six times more electricity than is in supply today. These sites are in Lake Magadi, Longonot, Menengai, Eburru, Olkaria, and Lake Turkana.

How come then geothermal remains largely untapped?

Geothermal energy has been tapped before but on a small scale. The Olkaria plant in Naivaisha, which adds about 14 per cent to the national grid, is the largest in Africa.

Efforts in the past have focused on the development of hydropower, which is proving to be un-reliable. As

a result, there is a shift to geothermal as a primary energy source. It is renewable, cheaper and does not pollute the environment.

So, what is GDC’s budget?

This financial year, GDC received Sh6 billion for its setup, procurement of rigs and drilling of wells at Olkaria. To realise the 4000 MW, we will drill 60 wells annually using 12 rigs at about Sh15 billion per year. Is this heavy investment worth it? At the onset, geothermal exploration and exploitation requires heavy financial commitment. However, in the long run, it is affordable. The wells once drilled will assure availability of steam for the next 25 to 30 years unlike diesel power plants where the economy and consumer bear the cost for importation of fossil fuels as a pass through costs.

How is GDC funded?

GDC is initially funded by the

Government, the World Bank, European Investment Bank and African Development Bank. However, the company is also developing a programme for early generation that will guarantee revenue stream for future development programmes.

What is GDC’s capacity for the task?

GDC has a range of expertise that rates internationally in all aspects of geothermal technology. These include PhD level geologists, geochemists, geophysicists, cartographers, environmentalists, surveyors, drilling engineer, reservoir engineers, civil engineers and electrical engineers.

In physical infrastructure,GDC is in the process of acquiring 12 deep rigs that will enable it drill at least 60 wells every year. This will translate to an equivalent of 250 MW of power every year.

What does GDC want to achieve?

GDC envisions a country where electricity is available to all to spur social and economic growth. In the next 20 years, we should be having some 4,000MW equivalent of steam. Our short term plans is to operate 12 rigs to drill the wells. We will install 5-10 MW overhead generators in six months of completing a well. With this approach, 250 MW of power can be installed annually and therefore reduce blackouts, stabilise the system and reduce costs of power.