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UAE company seeks deal for 105MW Baringo geothermal project

UAE company seeks deal for 105MW Baringo geothermal project

An unnamed firm from the United Arab Emirates (UAE) is in talks with the Geothermal Development Company (GDC) to develop a power plant at the Paka geothermal field in Baringo.

Energy Cabinet secretary Opiyo Wandayi said the development is one of those that have been targeted to increase the power generation capacity.

Paka is one of three areas GDC is developing for power generation in Baringo. The others are Korosi and Silali.

“There is a company from the UAE that is targeting the Paka geothermal field,” said Mr Wandayi in an interview with Business Daily.

GDC chief executive Paul Ngugi said the Paka field can generate 105 megawatts once complete. Out of this, GDC has so far harnessed steam with the capacity to generate 75 megawatts.

“We are now doing a feasibility study that will help us identify numerous aspects of the project. This will help us in modelling and tariff setting,” he said.

The State-owned company has hired a consultant to help it with the process. GDC is targeting the construction of a power plant at Paka to be completed by the end of 2026 or early 2027.

“We are very excited about the Paka project. Its progress has been very fast compared to our other projects, such as the one in Menengai,” he said.

GDC is also developing a 300-megawatt geothermal project in Suswa. The Sh156 billion project is back on track following the resolution of a land dispute that had pushed back the project for 10 years.

Indonesian firm PT Pertamina Geothermal Energy Tbk reached a deal with GDC and Africa Geothermal International Ltd to develop the project, including another project in Longonot.

“PT Pertamina, which is from Indonesia, will build a massive power plant in Suswa once we complete the necessary paperwork,” said CS Wandayi.

State-owned KenGen is also targeting to build the Olkaria VII Geothermal Power Plant, for $247,511,000 (Sh32 billion). KenGen is yet to give timelines for when the project will be completed, but it says the 80.3-megawatt plant will provide cheaper electricity and help stabilise power supply.

This comes when the government is increasingly betting on geothermal and hydroelectric energy to increase its baseload capacity. These projects will be developed once the government resumes signing new power purchase agreements (PPAs). There is currently a Parliament-imposed moratorium on new PPAs.

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