Geothermal power to help cut production costs

The Geothermal Development Company (GDC), a government-owned firm has harnessed steam equivalent to 80MW of electricity in the past six months, signaling Kenya’s resolve to seek alternative reliable energy to bring down the cost of manufacturing and spur economic growth. 

According to experts, the company’s output has increased the quantity of geothermal energy produced in the country to 209MW. 

The plan resonates with the country’s manufacturers calls for the reduction of energy costs, currently consisting of about 40 per cent of the total manufacturing costs. 

According to the Kenya Manufacturing Association, the high cost of energy has continued to erode the country’s products competitiveness in the regional and international markets. 

The association has particularly been lamenting that the country’s energy cost — four times higher than that of its major Comesa bloc trading partner Egypt – is a hindrance to the country’s efforts of becoming a middle income economy by 2030 as per the economic blue print Vision 2030. 

Speaking in Mombasa, GDC chairman Paul Gondi said the company’s goal is to accelerate the development of geothermal energy as one way of cushioning manufacturers from high costs of production. 

“Kenya has high geothermal potential for power generation with prospects of up to 10,000MW. But we are currently harnessing only 209MW, with GDC producing 80MW, while the rest is developed by two private entities,” said Mr Gondi. 

He said that the company has acquired two rigs which will commence drilling in the Menengai area later this year, increasing the number of rigs to five. GDC uses hired rigs in drilling Ol Karia Domes and Ol Karia IV geothermal sites.

The government, he said, was keen to inject 3,000MW of geothermal electricity into the national grid by the year 2020, and increase the figure to 5,000MW by 2030. 

This will cushion manufactures from the adverse effects occasioned by perennial power outages that have forced the government to invite emergency independent power producer who use diesel to generate electricity.

This stop-gap measure has however been termed as a two-edged sword as it increases the cost of energy and causes massive pollution.

Two private firms, Ormat runs a 48MW station in the Ol Karia Complex and flower firm Oserian Development Company operates a 4MW station that supplies energy to the farm.

Mr Gondi said that the GDC is currently also drilling in the Ol Karia Domes to supply KenGen with steam equivalent of 280MW for the Ol Karia I & IV power plants. 

“Another project involves the GDC in surface exploration work in the Menengai Caldera. Currently, civil work is ongoing — paving of roads, drilling for water in preparation for drilling to commence later in the year,” he said.  

The GDC is also undertaking exploratory work in East Pokot and Turkana in northern Kenya and in Homa Hills located in Nyanza.