Kenya set for geothermal power expansion

A geothermal power station

A geothermal power station

Kenya is poised for massive geothermal power expansion after exploratory studies in the country exceeded all expectations.

A recent UN-backed project testing new seismic and drilling technology proved that geothermal is a viable and cost effective source of power that has the potential to produce 1,000 megawatts in Kenya.

According to Achim Steiner, United Nations Environment Programme (UNEP) executive director, geothermal is 100 percent indigenous, environmentally-friendly and a technology that has been underutilized for too long.

The Global Environment Facility (GEF)-funded project has, over the past three years used techniques known as Micro Seismic and Magneto Telluric surveys and studies for identifying promising new drilling sites at locations including Olkaria, Naivasha which is around one hour’s drive from Nairobi.

At Olkaria a geothermal plant generating 45 MW has been operating for a quarter century. A second plant was brought on stream in 2000 with a capacity of 70 MW.

The main challenge to expansion in Kenya and elsewhere along the Rift has been the risk associated with drilling and the high costs if steam is missed. The nearly Sh80 million Joint Geophysical Imaging project has aimed to overcome these risks.

The old wells in Naivasha generate about 2 MW whereas the new techniques have not only boosted the chances of hitting steam but have pinpointed wells of much higher potential, typically on average 4 to 5 MW.

Two years ago the GEF Council approved the Africa Rift Valley Geothermal Development Facility (ARGeo) backed with close to Sh1.45 billion of funding and involving UNEP and the World Bank.

The project, which will underwrite the risks of drilling in Djibouti, Eritrea, Ethiopia, Kenya, Uganda and Tanzania, is now set to commence and will be able to call on the equipment and techniques piloted by KenGen and UNEP, says Steiner.

The ARGeo initiative has strong support from Iceland, one of the world’s leading geothermal economies where well over 90 per cent of its electricity comes from ‘hot rock’ and hydro, as well as Germany which is also developing this energy technology.

Separately Kenya and private investors are also seeking support funding from the Clean Development Mechanism (CDM) of the Kyoto Protocol for a further 35 MW extension which is currently in the validation stage.

Kenya’s current electricity capacity is around 1,000 MW. The country relies heavily on hydro-electric plants, generation systems that have in recent years suffered as a result of low rainfall and water supplies. The country has set itself a goal of generating 1,200 MW from geothermal by 2015.

A contract has recently been awarded to a Chinese company to drill as part of the development of a new Olkaria IV plant. As a result of the UNEP-GEF Joint Geophysical Imaging project the number of wells likely to be needed to achieve 70 MW could be 15 versus over 30 using the previous technology. This could save as much as Sh400 million for each well drilled.

Geothermal power comes from steam made from underground water heated by the Earth’s core, which is in turn used to turn turbines. By proving that geothermal power is economically viable, the Kenyan project has created incentives to attract private companies and reach the country’s full potential. Source: UNEP

Update (June 16, 2010) – KenGen to build power plants

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