GEOTHERMAL DEVELOPMENT IN KENYA: STATUS,

PLANNED ACTIVITIES AND REQUIRED SUPPORT

Geothermal Donors Coordination Meeting

Reykjavik, Iceland, May 26 2014

Dr. Peter Omenda

Kenya Power Sector Overview

Ministry of Energy and Petroleum

ERC

Energy Tribunal

KenGen Imports IPPs REA

GDC –steam resource

development

KETRACO – Transmission /Wholesale Market operator

KPLC – Distribution/Supply

Customers

Geothermal areas in Kenya

• The high temperature geothermal prospects in Kenya are associated with Quaternary volcanoes in the axis of the rift

• Possible resource capacity is estimated at 10,000MW

Status of Geothermal Generation

45MWe Olkaria I Power station

105 MWe Olkaria II Power station

PLANT

Olkaria I (3 UNITS X 15 MW) 45 MW

Olkaria II (3 UNITS X 35 MW) 105 MW

Olkaria III 110 MW

Oserian (TWO UNITS)* 4 MW

Eburru 2.5 MW

Olkaria (Wellhead) 30.5 MW

110 MWe Olkaria III Power station

293 MW

• Development of 460MW by 2016 is in phases as follows;

Menengai Project

Project Size Commissioning

460MW MENENGAI

100MW 2015

60MW June 2015

100MW Dec 2015

100MW June 2016

100MW Dec 2016

Prospect potential – 3,000 MW:

• 200MW Phase 1 to be commissioned by December 2016;

• Euro 80 million – KfW for steam field development

• US$ 6 million – geothermal risk mitigation fund for Infrastructure exploration drilling (including continuation premium).

BARINGO-SILALI PROJECT

Project Size Commissioning

200MW Baringo-Silali 200MW June 2016

• Field potential of 600-750MW

• Development of 150MW by 2016 to be developed in phases as follows;

• 200MUSD pledged from India Exim Bank

• Detailed Surface study completed early 2013

• ESIA license for drilling awarded

SUSWA PROJECT

Project Size Commissioning

150MW SUSWA 150MW June 2016

Olkaria Geothermal Projects-2014

Field Installed Capacity (MW)

Commissioning date

Olkaria Field

Olkaria IV 140 2014

Olkaria I, Unit 4&5 140 2014

Olkaria I unit 6 70 Production drilling, 2015

Olkaria Wellhead 70 Production drilling, 2016

Olkaria 5 140 Production drilling

Olkaria 6 140 Production drilling

Akiira One Phase 1 70 2017

AGIL, Longonot, Ph 1 70 2017

MENENGAI PROJECT-Status update

Drilling

• 80MW on wellhead

• Feasibility Study - completed

Steam gathering system • Steam gathering system for the 100 MW under

construction

Transmission Line

• Transmission line under construction

Field potential of 600-750MW

• 200MUSD pledged from India Exim Bank

• GDC has invited joint equity investors to develop the steam field with GDC

SUSWA PROJECT

Project Size Commissioning

150MW SUSWA 150MW June 2016

Geothermal Activity

Financing Options

Govt. Capital

Market DFIs

Com-

mercial

Banks

Vendor

Fin-

ance

Joint

Ven-

tures

Op-

erator/

Owner

funds

PPPs

A Resource Exploration (Risk Mitigation)

A.1 Prospecting

A.2 Detailed Surface Exploration

A.3 Exploration Drilling & Well Testing

B Resource Assessment (Risk Mitigation)

B.1 Appraisal Drilling

B.2 Feasibility Studies

C Power Plant Development & Operations

C.1 Production Drilling & Well Testing

C.2 Environmental & Social Impact Assessment(ESIA)

C.3 Steam Field Development

C.4 Substation & Transmission Line Development

C.5 Power Plant Construction/Early Generation

C.6 Resource Management (Operations) & Further

Development

OPTIONS ON FINANCING GEOTHERMAL DEVELOPMENT

1 2 3 4 5 6 7 8

955

17,615

Admin- stration

685

Consul-

tancy

500

Substation &

Transmission

585

Power Plant

6,600

Steam Field

2,810

Drilling

5,480

Total Interest During

Construction

US$ million

Approximately US$ 18 billion

required to develop the

projected 5GW of geothermal power

by 2030

ESTIMATED INVESTMENT IN GEOTHERMAL BY 2030

Project Name Capacity/No Approx Amount (MUSD)

Date due

Olkaria 7 plant 140 500 2016

Olkaria 8 plant 140 500 2016

Production drilling 80 Wells 480 2016

Steam gathering system – Olkaria 7

49 2016

Steam gathering system Olkaria 8

49 2016

Feasibility studies Olkaria 7 and 8 4 2016

Transmission - Olkaria to Suswa sub station

2016

Projects and Support-KenGen

Project Name Capacity/No

Approx Amount (MUSD)

Date due

Menengai:

Menengai II – steam gathering

60MW 21 2015

Menengai III- steam gathering

100MW 35 2016

Menengai IV - steam gathering

100MW 35 2016

Menengai V - steam gathering

100MW 35 2016

Feasibility studies for plants III-V

8

2016

Projects and Support-Menengai

Project Name – Baringo Silali

Capacity/No Approx Amount (MUSD)

Date due

Production drilling 30 wells 180 2016/17

Steam gathering system 200MW 70 2016/17

Feasibility study 2 2016/17

Transmission line Silali - Rongai

65 2016/17

Projects and Support-Silali and Suswa

Project Name-Suswa Capacity/No Approx Amount (MUSD)

Date due

Exploration, Appraisal & Production drilling

35 wells 210 2016/17

Steam gathering system 150MW 52.5 2016/17

Feasibility study 2 2016/17

Transmission line to Suswa Substation

3.6 2016/17