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Tuesday, 24 July 2012

New Olkaria Geothermal plant in Kenya launched


Yesterday the President of Kenya, H.E. Mwai Kibaki launched the construction of a 280MW geothermal project at Olkaria, 100Kms from the capital Nairobi.  The new plant will cost approx. USD 1Billion and will be the largest geothermal power plant in Africa when completed in 2014. It will cumulatively increase Kenya’s electricity capacity by 40% from the current 1500MW, considering other projects already under development. 

This is good for the country because its current shortfall at peak demand is currently 200MW. Electricity supply is also known to be erratic and expensive compared to other countries in the region.

The project is funded by Kengen, Kenya’s national power producer, The Government of Kenya, the Japanese International Cooperation Agency( JICA), The World Bank, German Development Bank , (KFW), The French Development bank( AFD), and The European Investment bank.

The project is being undertaken by a consortium made up of Japan’s Toyota Tsusho Corp and South Korea’s Hyundai Engineering & Construction building the main power plant. Sinopec of China is developing the steam field while construction of the substation and transmission lines is being done by India’s KEC. We see a predominantly Asian team participating in this project.

The project is part of the government’s Vision 2030 plan to increase the country’s power production to 3,750MW by 2018 and 15,000MW by 2030.

In the speeches yesterday most officials talked about cheaper renewable energy through geothermal energy and this plant and others to follow going a long way in creating a capacity reserve. A capacity reserve that will prevent blackouts and power shedding during peak demand. Kenya currently has an estimated proven reserve of 7,000MW of Geothermal Power.
From my analysis I predict that when plant is complete it won’t have made a difference to the reserve capacity as it would have only gone to quench the current and growing power deficit. With the ongoing rapid rural electrification program, growing population and expanding foreign investment in business, manufacturing and commerce, the growth in demand should be about 10% per year. Even more I don’t believe the power will be cheaper, immediately, as the loans taken from the international lenders mentioned above have to be paid back with interest over period of time. My prediction is that power from this plant will be cost effective and cheaper  after around 10 years.

Currently only 15% of homes in Kenya have domestic power from the national grid, while industries go without power for an average of 6 hours a week or more( According to Ms Betty Maina, the Chairlady of the Kenya Association of Manufacturers). But all in all congratulations to the Kenyan government for successfully pushing through such a large and strategic project to increase provision of power that many Kenyans have been yearning for and that will make Kenya’s electricity more stable and cheaper in the long run.

7 comments:

  1. how does 280MW increase 1500MW by 40% its actually approx. 20%, that said check dis... https://www.facebook.com/photo.php?fbid=10151949876150641&set=a.444275975640.370112.32985985640&type=1&relevant_count=1

    Charles.

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  2. Considering we have other Geothermal projects by Orpower and Kengen under development and the transmission line from Ethiopia soon to be constructed. That will take it above 40%.

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  3. Hello,

    I just wanted to know that our total current power generation for the whole country is equivalent of What Posco Steel of South Korea produces for its factory usage (quoting Mugo Kibati). How do they do this and I don't hear them mentioned with Nuclear power generation? Is it one source or a diverse energy mix? Could you illuminate on this?

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  4. Bene,
    Pesco Steel is one of the largest steel makers in the world. Am not sure of the exact demand/generation of its total factories as it has several in S. Korea and around the world but it could be true considering the amount of energy it wanted to save by 2008 was almost equivalent to the average annual output of the Kenyan refinery in terms of oil equivalent.

    South Korea has Nuclear and thermal (i.e. coal, oil and gas). This fuels cannot be ignored as they produce base load electricity though very dirty to the environment.

    S. Koreas generation capacity is now over 210,000MW compare to Kenya's 1500MW. Vision 2030 target is 15,000MW

    S. Korea's energy mix is as follows:

    62.4% of South Korea's energy comes from thermal power sources (32 coal, oil and gas-powered generating plants),

    36.7% comes from nuclear power, and

    0.8% comes from hydropower (22 mini- or micro-hydro plants).
    Renewables – mainly biomass from household waste , at just 0.1%

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  5. Geothermal power in Africa? Wow, it is really surprising and fascinating news. It was along way before development of energy industry in African countries, besides mining traditional fuel. I'm glad for Kenya, I believe this project of geothermal power generators' implementation really should work.

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  6. Hey there! Keep up the good work! Thank you so much for sharing your knowledge about geothermal energy. You have an interesting and very informative page. I'll be looking forward to visit your page again and for your other posts as well. Glad to have a chance to drop by and learn additional information about this particular topic from your blog.
    In addition to that, I have read an article stating that in 1892, America's first district heating system in Boise, Idaho was powered directly by geothermal energy, and was copied in Klamath Falls, Oregon in 1900. A deep geothermal well was used to heat greenhouses in Boise in 1926, and geysers were used to heat greenhouses in Iceland and Tuscany at about the same time.[10] Charlie Lieb developed the first downhole heat exchanger in 1930 to heat his house. Steam and hot water from geysers began heating homes in Iceland starting in 1943.
    Generally pays for itself in 5-6 years.

    Geothermal New Hampshire

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  7. I agree, I think it would take years before Kenya experiences all the benefits of these geothermal plants.
    Nevertheless, it's good to know that the shift for renewable energy is underway and in process. It's a great start, and with the keen support of the Government, eventually geothermal energy could improve the lives of many people in Kneya.

    Geothermal power plants here in the Philippines have been providing electricity for years. While there some new geothermal plants, such as the Bulusan geothermal plant , geothermal energy development is also still in process.
    Very Informative Read, Thanks! Keep up the good work.

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