Jubilee FDI - Quantum Power scales up its Menengai geothermal project from 35MW to 175MW

[spear]

Quantum Power, owner of 35 mw Menengai geothermal development, tells President @UKenyatta at #CHOGM2018 it ready to scale project five-fold.

https://t.co/yR6LhAsK8d

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Menengai Geothermal Development Project
Description:
A $746 million geothermal development project seeking to harness the potential of the Menengai geothermal steam field for the generation of 175 MW of electricity annually.

Background:

In a country where the electrification rate is only 65 percent, the Government of Kenya has adopted ambitious plans to increase the national geothermal generation capacity from the current 508 MW to 1,700 MW by 2020 and 5,530 MW by 2031. The Menengai Geothermal Development Project, in line with Kenya’s green growth vision, will play a key role in achieving these objectives and meeting Kenya’s rapidly increasing demand for power.

The project aims to develop the Menengai geothermal steam field to produce enough steam for 175 MW of power, which will ultimately be generated by private sector Independent Power Producers. The project, anticipated to be completed by December 2020, will cost approximately $746 million and will enable a substantial increase in the provision of clean, reliable and affordable electricity to Kenyan households, businesses and industries. CIF is financing a $17.5 million grant and a $7.5 million loan through the SREP fund.

Objectives and Outputs:

Located within the African Rift Valley, about 180KM northwest of Nairobi, this project will enable electricity generation equivalent to the consumption needs of up to around 185,000 households. Approximately 26,000 of these homes are based in rural areas and 110,000 are small businesses. Additionally, 1,000 GWh will be newly available for businesses and industries. Direct project beneficiaries are located in the Bahati, Kiamaina, Wanyororo, Kabatini, Engoshura, Solai, Banita, Mashiaro, Menengai Hill, Valley Farm, Kiamunyi/Olive, Ol Rongai & Kwa Gitau communities as well as beneficiaries in neighboring communities who will benefit from the project’s connections to the national grid.

The project will help avoid close to 540,000 tons of CO₂ per annum. Access to modern energy will help improve health and education opportunities, particularly for women and girls. The project also intends to seek a gender equitable employment ratio of 30 percent women, which is quite high according to current standards in rural Kenya. The transfer of a potable water facility to the community/municipality will have a direct effect in the empowerment of women who normally collect water for domestic purposes.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information

[Mathaais]

@spear

private sector Independent Power Producers

And there lies the reason why Kenyans will never realize cheap power.

[Useless_Spectator]

nimeona super senator hapo . Good to see uhuru mentoring young guys. Na korir generali. But who set the seating,who is that nigga at the head of the table?. (that is where uhuru should be. Good job though.

[spear]

@Useless Spectator

nimeona super senator hapo . Good to see uhuru mentoring young guys. Na korir generali. But who set the seating,who is that nigga at the head of the table?. (that is where uhuru should be. Good job though.

Look at the picture vizuri, President Uhuru is right in the middle. That person next is our high commissioner to uk Lazarus Amayo. S3 and Korir are our current leaders now but they will be our future top leaders after 2022. A complete national generational leaders sweep is long overdue and coming.

[obienga]

@spear

private sector Independent Power Producers.

@Mathaais

And there lies the reason why Kenyans will never realize cheap power.

Geothermal is one of the most cost effective sources of power generation. Its cost is also amongst the lowest and it qualifies as clean energy. The reason why Kenyans do not have cheap power is partly because of thermal power producers whose tariff is multiples of the other sources of energy (follow the ownership trail of Gulf Energy, Thika Power etc and you find the political connections that lead to them).

The real madness is what will send Kenya (Lamu) into environmental ruin and burden wananchi with debt and health (cancer) problems with Ksh 38.7 billion a year for 25 years guaranteed to be transferred into the already bulging pockets of some greedy Kenyans in the name of a coal power plant. Why coal has no place in Kenya’s energy future | Nation

[Mathaais]

@obienga

Geothermal is one of the most cost effective sources of power generation. Its cost is also amongst the lowest and it qualifies as clean energy. The reason why Kenyans do not have cheap power is partly because of thermal power producers whose tariff is multiples of the other sources of energy (follow the ownership trail of Gulf Energy, Thika Power etc and you find the political connections that lead to them).

The real madness is what will send Kenya (Lamu) into environmental ruin and burden wananchi with debt and health (cancer) problems with Ksh 38.7 billion a year for 25 years guaranteed to be transferred into the already bulging pockets of some greedy Kenyans in the name of a coal power plant. Why coal has no place in Kenya’s energy future | Nation

Why should the government invest in developing the geothermal sources then stop at the actual production?
Then to make it worse hand it to private producers?
These are the kind of contracts that always leave Kenyans short changed.

[obienga]

@Mathaais

Why should the government invest in developing the geothermal sources then stop at the actual production?
Then to make it worse hand it to private producers?
These are the kind of contracts that always leave Kenyans short changed.

Let us not forget that the government owns up to 70% of Kengen and 100% of GDC. If the private producers are paying a premium to compensate GDC for developing a source to be production-ready there should be no issue with such a model. I doubt they are getting into it for free. Production in itself is not a cheap affair, power plants are costly. For example you will see the UK investors willing to spend $700m to develop the resource. I don’t think its a bad contract if the tariff paid is reasonable. Geothermal tariffs are about $0.08, its not as though IPPs dictate what the tariff is, they have to factor that into their own development costs or make losses.

What makes a bad contract are the coal and thermal (diesel) businesses. We’re vilifying geothermal and not seeing the worst contract in the sector taking formation and that’s before the nuclear madness resurfaces when countries around the world are contemplating getting rid of such plants. Curiously you do not mention thermal yet its tariffs are often up to double or more that of geothermal https://www.nation.co.ke/news/Why-Sh8-1bn-has-been-slapped-on-power-bills-/1056-4251366-6xw93hz/index.html

It is through thermal that Gichuru and Okemo fleeced Kenyans. Those who are politically connected and following in their footsteps are doing it again. Once you poison the environment including water sources, there is no going back. Once you have cancer, there is a small chance one survives. Any so called “cheap coal power” will cost us a lot more in terms of healthcare and environment issues in addition to the mandatory 38 billion a year as per the contract whether we use it or not. The villain is not geothermal, solar or wind.

[Inthanite]

Good news from [COLOR=rgb(41, 105, 176)]Catheter House.