The Geothermal Development Co. (GDC) has called for tenders for eight power plants set to produce 800 MW of electricity in Kenya’s geothermal-rich Rift Valley.
GDC plans to drill 200 wells starting in January 2012 on the Bogoria-Silali block. Investors will finance, design, construct, operate and maintain the power plants. The country is attempting to install 5,000 MW of geothermal energy into its national electricity grid by 2030 with experts saying that Kenya has the potential to produce up to 7,000 MW of geothermal energy.
GDC said the latest block has the potential to produce 3,000 MW; the 800 MW is expected to reach the grid by the end of 2017 and another 1,200 MW will come online in three separate roll-outs of 400 MW phases ending in 2023.
Interested parties would need to raise at least $400 million for each 100 MW development, supported by letters of credit from credible financial institutions. “The expected capital structure for the power plant is at least 25% equity and 75% debt,” GDC reports, adding that the government would not provide any sovereign guarantees.
In mid-January, GDC announced that it would begin drilling for geothermal steam in Menengai for the first phase, totaling 400 MW and expected to be completed by 2014. GDC spokeswoman Ruth Musembi told Alternative Energy Africa that the Menengai and Bogoria-Silale blocks are completely separate. She said, “What we have done is to segment the geothermal resources into blocks, all being developed by GDC.”
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