The government has issued a progress update on the Menengai Geothermal Development Project, describing it as one of Kenya’s key clean energy Public Private Partnership (PPP) initiatives.
In a statement on Wednesday, May 27, Director General of the Public-Private Partnerships Directorate, Kefa Seda, said the project continues to demonstrate how government-backed de-risking can support long-term infrastructure financing and renewable energy development.
Speaking after an inspection tour of the Menengai Geothermal Project in Nakuru County, Seda said the visit brought together Principal Secretaries and officials from the Public Private Partnerships Kenya Committee to assess the progress of the geothermal power generation programme being implemented through a partnership between the Geothermal Development Company (GDC) and Independent Power Producers (IPPs).
In the update, Seda explained how the government and private investors are sharing responsibilities in the geothermal development process.
"Under this model, GDC undertakes the high risk and capital intensive upstream activities including geothermal resource exploration, appraisal drilling, steam field development, reservoir management, and steam gathering infrastructure before supplying verified geothermal steam to private power producers for electricity generation and dispatch into the national grid," the statement read.
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Seda said the arrangement has helped improve investor confidence and financing prospects for the project.
"This government led de risking framework substantially improves project bankability, lowers investor exposure to exploration uncertainty, accelerates private sector participation, and strengthens financing viability for large scale geothermal infrastructure," the statement added.
Seda further revealed that the first phase of the development is targeting a total of 105 megawatts of electricity generation through three separate power plants.
"The first phase of the development targets 105MW through three separate 35MW power plants being developed by Sosian Menengai Geothermal Power Limited, Globeleq Menengai Limited, and OrPower Twenty Two Limited," the statement further read.
Seda noted that the completion of the projects is expected to improve the country’s electricity supply and support industrial growth.
"Upon completion, the projects are expected to strengthen baseload electricity supply, enhance grid stability, support industrial productivity, reduce pressure on thermal generation, and reinforce Kenya’s position as a global leader in renewable energy development," the statement noted.
Seda added that the Menengai Geothermal Development Project has become an important model for future infrastructure partnerships across the country.
"The Menengai model continues to provide an important reference point on how governments can strategically undertake early stage infrastructure and resource risks while leveraging private sector capital, operational expertise, and generation efficiency in delivery of commercially sustainable infrastructure," the statement concluded.
This comes a day after KenGen announced plans to apply for Electric Power Transmission and Distribution Licences for the KenGen Green Energy Park.
In a notice on Tuesday, May 26, the company said it will submit the application to the Energy and Petroleum Regulatory Authority (EPRA) on Tuesday, June 2.
According to the notice, the application relates to the development of the KenGen Green Energy Park, with the firm inviting members of the public and interested stakeholders to inspect the application documents once submitted.
Addressing concerns over the proposed licences, KenGen assured the public that the move would not negatively affect communities, institutions, or authorities within the project area.
"The grant of the Licenses will not have any adverse effect on public or local authorities, companies, persons or bodies of persons within the areas of the undertaking," the notice read.
KenGen explained where members of the public can access the application documents and related details for inspection.
"Printed copies of the application, the Licences once granted and of any other particulars required can be inspected by the public at the registered office of the Company at the Company Secretary's office KenGen Pension Plaza II, Kolobot Road, 10th Floor, KenGen Pension Plaza II, Kolobot Road, Parklands, P.O. Box 47936 - 00100 GPO, Nairobi," the notice added.
KenGen also outlined the procedure for lodging objections or representations regarding the application before the regulatory authority.
"Any public or local authority, person or body of persons desirous of making any representation on or objection to the application must do so by a letter addressed to the Regulator and marked on the outside of the cover enclosing it 'Transmission and Distribution Licences Objection' on or before the expiration of thirty (30) days from the date of application and must forward to the applicant a copy of such representation or objection," the notice concluded.
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