Controller of Budget Margaret Nyakang’o has questioned the slow progress of the 300 megawatts (MW) Suswa geothermal project, which is only one percent complete 10 years after launch.
It is one of the several big-money geothermal exploration and development projects being undertaken by the Geothermal Development Company (GDC).
Estimates show that it requires $1.2 billion (Sh156.63 billion) to run to a conclusion.
“The 300MW Suswa Geothermal project under the State Department for Energy commenced in 2014 and is expected to be completed by 2029,” said Dr Nyakang’o.
She added: “Nonetheless, as of 31st June 2024, the project completion level was reported at 1 percent.”
This indicates that the project is unlikely to be completed on schedule given that there are only five years left to the stipulated 2029 deadline for power generation from the field.
The project, however, got a boost this year after Indonesian firm PT Pertamina Geothermal Energy Tbk (PGE) reached a deal with GDC and Africa Geothermal International Ltd (AGIL) to develop the Suswa and Longonot geothermal projects.
A delegation from PGE visited Kenya in March 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.
According to the Indonesian firm, after exploration drilling, a feasibility study will be conducted to secure a power purchase agreement with a viable tariff.
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 start operations in 2027.
