KenGen plans to drill 42 new wells with output of 200 megawatts

The Olkaria II geothermal power plant near Naivasha, Kenya on February 15, 2018.

Photo credit: Reuters

The Kenya Electricity Generating Company (KenGen) plans to drill 42 new geothermal wells for an estimated Sh23.29 billion as it targets to deepen the share of clean energy in the national grid.

Regulatory filings showed that the wells will be built at Olkaria geothermal field in Hell’s Gate National Park over a five-year period, with KenGen estimating that the project will add 200 megawatts (MW) of geothermal power.

“The proposed project will contribute towards the promotion of renewable energy and phase-out of thermal energy sources in Kenya,” the company said.

The 42 wells will be drilled each for an average of Sh554.67 million, placing the overall cost of the project at Sh23.29 billion.

The project will sit on seven pieces of land measuring about 1580.29 acres, which KenGen leased from Kenya Wildlife Society for 50 years with effect from November 16 last year.

“The objective of the proposed project is to enhance geothermal power generation in line with the company’s good-to-great strategy and the government’s Bottom-up Economic Transformation Agenda,” KenGen said.

The firm says the proposed project requires enormous financial capital to establish and hence requires development partners such as the World Bank, European Investment Bank African Development Bank, and Japan International Cooperation Agency.

KenGen’s current total installed capacity is 1,904 MW, with geothermal accounting for 799 MW or 42 percent after hydro’s 826 MW (43 percent). Thermal takes up 253.5MW (13 percent) while wind is 25.5MW or two percent.

According to the company, the project will comprise production, monitoring, and reinjection wells that will be connected to existing and future geothermal power plants as make-up wells or new wells respectively.

The project fits in the government’s Least Cost Power Development Plan (LCPDP) 2022 -2041, which shows KenGen plans to add 663 MW of geothermal power between 2025 and 2036 and phase out 231 MW of thermal power between 2025 and 2031.

KenGen’s phase-out plan for thermal power plants as per LCPDP shows the company will this year do away with three thermal plants Muhoroni Gas Turbine I of 28 MW, Muhoroni GT II (28 MW) and Kipevu I Diesel Engine (60 MW). It will then phase out the 115 MW Kipevu III in 2031.

KenGen is licensed to generate energy in bulk, with Kenya Power being the sole off-taker of electricity under competitive power purchase agreements (PPAs).

The firm, which accounts for 61 percent of electricity consumed in the country, has a 30-year geothermal resource license from the Ministry of Energy to drill geothermal at the Olkaria Geothermal Field which covers 204 square kilometers—an equivalent of 20,400 hectares. The license was issued on September 19, 2008.

KenGen is a member of the United Nations Global Compact Kenya (UNGCK), which serves as the local network of the United Nations Global Compact that rallies businesses to deliver on Sustainable Development Goals.

The geothermal project aligns with the national target of abating greenhouse gas emissions by 32 percent by 2030 under the updated Nationally Determined Contribution.

Kenya has set a target of achieving 100 percent of its electrical energy generation from renewable sources by 2030.

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