Suswa geothermal project on track, land dispute resolved
Chairman of Geothermal Development Company (GDC) Walter Osebe Nyambati (second left) with other board members follow proceedings during the company’s steam symposium being held at Sarova Woodlands Hotel in Nakuru on September 12, 2024.
Photo credit: Boniface Mwangi | Nation Media Group
The Sh156 billion geothermal project in Suswa is back on track after a land dispute that impeded its implementation was resolved, a top official of the Geothermal Development Company (GDC) said.
State-owned GDC, which has in recent months faced scrutiny from the Controller of Budget's office over slow progress in the project, said that land arbitration issues that had delayed the project have been fully resolved.
The 300-megawatt (MW) geothermal plant, which is expected to contribute significantly to Kenya's national electricity grid, has been facing delays due to disputes over land ownership and compensation claims from the local community.
These disputes slowed the pace of construction and other preparatory work, raising concerns from both the government and stakeholders over the timelines for delivering the much-anticipated project.
"We are developing critical infrastructure including roads and water reticulation systems to develop drilling operations. After months of negotiations and engaging with local stakeholders, we have successfully resolved all pending land issues. This is a major breakthrough for the project, which can now proceed without legal or logistical interruptions," GDC chairperson Walter Nyambati said on the sidelines of a conference in Nakuru.
The Controller of Budget Margaret Nyakang’o had questioned the slow progress of the project which is only one percent complete, 10 years after it was initiated in 2014. The geothermal plant in Suswa is expected to start operations in phases, contributing to the national grid by 2027.
The Suswa project received a boost this year after an Indonesian firm, PT Pertamina Geothermal Energy Tbk (PGE) reached a deal with GDC and Africa Geothermal International Ltd (AGIL) to develop it and another in Longonot.
According to the Indonesian firm, after exploration drilling at the fields, a feasibility study will be conducted to secure a power purchase agreement with a viable tariff.
A delegation from PGE visited Kenya in March this year for talks with GDC and AGIL.
During the visit, PGE and GDC announced a plan to sign a Joint Development Agreement (JDA) that will govern GDC's role in exploration at the first two wells through a government drilling scheme and the possibility of further exploration at three other wells to be conducted by PGE.
"We target the implementation of the JDA by mid-2024, with GDC's drilling target by the end of 2024 or early 2025," said PGE President Director Julfi Hadi.
The firm said that the development of the Suswa field will see the construction of four units of geothermal power plants, each with a capacity of 50MW. PGE is targeting to complete one of the 50MW units and begin operations in 2027.
Mr Nyambati said the state agency is also wooing investors interested in using geothermal steam and other resultant energy sources to set up industrial cottages in Paka area, Baringo.
The chairperson said investors have expressed interest in tapping geothermal resources that will secure the country’s growing demand for electricity.
“We are diversifying into other direct uses in geothermal energy where drilling activities are currently ongoing. These include milk pasteurization, greenhouse heating, and fish farming, he explained.
