GDC begins opening wells on Menengai floor as IPP set to start power generation

Nakuru, Thursday May 4, 2023

KNA by Anne Mwale/Dennis Rasto

The Geothermal Development Company has started opening geothermal wells at the Menengai Crater floor in preparation for a local Independent Power Producing company (IPP) that is set to start generating 35 megawatts of electricity from the steam by next month.

Geothermal exploration at Menengai started in February 2011 but since then, no power has ever been harnessed.

Sosian Energy is however on the verge of making history, having been the first IPP to generate power from some 50 wells drilled at the site.

 Eng. Edwin Odum attached to GDC’s Resource Management Department said five out of the targeted twelve wells have already been opened in the exercise that kicked off last week, adding that his team expected to complete the procedure within seven days.

Sosian Menengai Geothermal Power was initially scheduled to start operations by September last year after receiving Sh6.5 billion funding from the China-based Zhejiang Kaishan Compressor to construct a geothermal power plant.

The two parties further entered into a 14-year Sh1.8 billion operations and maintenance of systems agreement.

The IPP will now pay GDC Sh1.7 billion per year for the next 25 years, before eventually handing over the plant to the government.

Eng. Odum explained that after opening up all the wells the steam will be blown for a week, while being subjected to what he described as target plate test to ensure that it does not have substances that may cause damage to the power plants’ turbines.

He disclosed that the target plate test will be conducted by independent engineers and if the steam is confirmed to be of good quality it will be diverted to Sosian Energy.

He added, “The wells can cumulatively generate 105 megawatts. Our engineers and technicians have checked the steam gathering system and confirmed it is in good condition. All the steam is flowing effectively to the vent station near the location of the IPPs,”

Under the arrangement christened Menengai Model- GDC was to take care of upfront risks and then invite private sector players to construct, own and operate the plants for 25 years.

After drilling geothermal wells and building the steam gathering systems at the Menengai Crater fields in 2013, the Geothermal Development Company competitively selected three firms that would set up power plants in a Public Private Partnership.

The three Independent Power Producers Sosian Energy, Quantum Power East Africa and Orpower were expected to build at the crater’s floor power plants with a combined generating capacity of 105 Megawatts or 35 Megawatts each.

For a long time, there was no activity as the companies experienced difficulties in raising capital to construct the power plants.

Kenya Electricity Transmission Company (Ketraco) has set up a 132 kilovolt (kV) substation that will transmit electricity from the three power plants.

Menengai phase one is part of a 5,000 Megawatt project by the government to produce affordable, reliable and green energy.

Menengai Project is the second large-scale geothermal field being developed in Kenya after the Olkaria units in Naivasha Sub-County whose exploration is carried out by the Kenya Electricity Generating Company (KenGen).

Paul Muhende, a Civil Engineer and a planning superintendent overseeing construction of Sosian Menengai Geothermal Power said the first and second unit of the plant feature screw expanders, while the third and fourth ones are equipped with screw turbines to optimize utilization of steam from GDC wells in generating power.

Eng. Muhende explained that dry steam from GDC wells will be channelled into the screw turbines to generate electricity, while wet steam which is a by-product of the initial run will be directed into the screw expanders where as it is transformed into dry steam yet again while moving rotors that are coupled with generators to produce power.

He added “This type of engineering model makes our power plant a full system that uses the overall potential of the whole power of steam before re-injecting it into the system. In the model, dry steam is immediately re-injected into system once it runs turbines.”

Construction of the second 35-megawatt plant, at Menengai which is projected to cost Sh13.39 billion ($108 million), is expected to start by next month and be completed by 2025 following the award of an infrastructure design and building contract to a Japanese company.

Toyota Tsusho Corporation (TTC) has been picked by a London-based power firm Globeleq as the general contractor, who will design the infrastructure for the power plant as well as procure the necessary material and equipment.

Technically known as the engineering, procurement, and construction (EPC) contractor, the Japanese conglomerate is expected to commence work during the first quarter of 2023.

Globeleq Chief Executive Officer Mr Mike Scholey said his firm and the Nagoya-based company, a unit of the Toyota Motor Corporation had also executed a long-term service agreement (LTSA), which will take effect once the power plant reaches commercial operations in 2025.

In 2021, Globeleq acquired a majority stake in Quantum Power East Africa, one of the three IPPs that GDC awarded exclusive rights to set up steam driven power plants under a build-own-operate model.

British Nation Investment (BII), formerly CDC) holds 70 percent of shares in Globeleq, while the rest are owned by Norwegian DFI Norfund.

Globeleq said the investment is part of the Sh500 billion deal agreed between President Dr. William Ruto and the UK Prime Minister Rishi Sunak during the 27th UN conference on climate change in Egypt last year.

Currently an estimated 80 per cent of Kenya’s electricity is from clean sources mainly geothermal and wind and has set the ambitious target of a 100 per cent transition to clean energy by 2028.

President Dr. Ruto disclosed the ambitious target at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) in Egypt.

The president underscored the importance of ramping up the use of clean energy as a way of helping Kenya lower the cost of electricity by eliminating the fuel cost charge that thermal power plants charge for supporting the grid especially at peak demand or during low hydro-production due to drought.

Kenya has been grappling with high power bills mainly because of the fuel cost charge, the money that Kenya Power collects from consumers on behalf of the thermal power generators.

The charge significantly rises when fuel prices go up and when the amount of oil consumed by the generators increases. 

Increased use of electricity from fuel generators hits consumers with high power bills due to the high cost of fuel, underscoring why cutting reliance on thermal plants is key to lowering the cost of electricity.

For example, Kenya Power disclosed that the uptake of electricity from thermal energy plants jumped from 876-gigawatt hours (GWh) to 1,539 GWh in the 2021/22 financial year.

GDC plans to pump an extra 1065mw into the national grid in the next ten years which will be generated from Menengai (465 Mega Watts), Baringo-Silale (300 MegaWatts) and 300 Megawatts from South Rift region as the government seeks more geothermal energy.

With a proven potential of 7,000 megawatts, geothermal energy from Kenya’s geologically active Great Rift Valley forms the cornerstone of a government scheme to boost energy production.

Records from the Ministry of Energy indicate that geothermal is the leading contributor of power to the national grid, accounting for 44.12 percent followed by hydropower at 26.98 percent.

Thermal is below 13 percent. This is in contrast to 2014 when the share of thermal was at a high of 34.49 percent due to erratic rains that reduced hydropower sources.

Kenya has been deepening supply of power from cheaper sources such as wind and steam. This is expected to translate to reduced power bills for consumers.

Data from the Energy and Petroleum Regulatory Authority shows that geothermal is the biggest contributor of power to the national grid, accounting for 44.12 percent of the total supply.

According to the Renewables Global Status 2021, Kenya tops in Africa with 700 megawatts (MW) of geothermal power, retaining its place compared to last year.

The US has the largest geothermal generating capacity with 2,500 megawatts followed by the Philippines (1,900 MW), Indonesia (1,800 MW), Turkey (1,100 MW), New Zealand (1000 MW), Mexico (900 MW), Italy (800 MW) and Iceland (750 MW).

Kenya beats technological heavyweight Japan which has been ranked tenth with an output of 500 MW.

The rest of the world shares 950 MW. Ethiopia is the only other African country with developed geothermal energy (7 MW).

Geothermal is widely considered a preferable, low-cost renewable energy source due to low emissions when compared to thermal sources.

It is also cheaper than thermal power when used as an alternative to mitigate depressed hydropower generation due to drought. Kenya has a target of 5 gigawatts (GW) geothermal capacity by the year 2030.

Green energy power plants under development in Kenya include the 300 MW Lake Turkana Wind Power Plant, which is the single largest wind power plant in Africa, the 70 MW Olkaria 1 and the 140 MW OlKaria V.

Courtesy; K.N.A