Development of the Menengai Geothermal Project, estimated to harbor a potential of 1600MW, was started in 2009. Surface studies have been completed and exploration and appraisal wells done.
The project will be developed in five (5) phases with the long-term goal of developing 465MW of geothermal steam equivalent. A total of 47 geothermal wells, with a potential of 169MW, have been drilled so far by 2019.
The Menengai Phase I project is being undertaken through a steam sales business model where GDC supplies steam to the power plants for conversion to electricity. Commissioning of the power plants is ongoing.
For the first phase of 105MW at the Menengai Geothermal Project, GDC has awarded three contracts to Independent Power Producers (IPP’s) to finance, procure, construct and operate three power plants, on a Build-Own-Operate (BOO) basis. The IPPs awarded the contracts so far include;
I. QPEA GT Menengai Limited
II. Sosian Menengai Geothermal Power Limited
III. Orpower Twenty Two Limited
The Menengai Phase II project is located at the eastern sector of the Menengai Caldera. It is expected to generate 60MW steam equivalent. The geo-scientific studies and exploratory wells have been drilled in this sector.
The Menengai Phases III, IV and V are located to the greater Northern West of the Menengai Caldera. Preliminary geoscientific studies undertaken in the Menengai North West indicated a robust geothermal resource with associated surface manifestations and young volcanic activity.
PISSA refers to Project Implementation and Steam Supply Agreement. This is an agreement between GDC and the Independent Power Producers (IPPs). It provides the contractual framework for implementation of the project in which GDC provides steam to the IPPs who then convert steam into electricity.
The Power Purchase Agreement (PPA) is an agreement between the Off-Taker (KPLC) and the Independent Power Producers (IPPs) for supply of electrical energy by the IPP and offtake and payment for the electricity by KPLC.
Steam Gathering System (SGS) is used in geothermal projects to collect and deliver steam from the steam fields to the power plants. GDC has completed the set-up of an elaborate SGS in the Menengai Geothermal Project.
The following infrastructure has been developed in the Menengai Geothermal Project:
Kenya Electricity Transmission Company (KETRACO) has constructed power evacuation facilities which comprises of a power substation and 132kV overhead transmission line, intended to evacuate power to Soilo Substation (Industrial Area in Nakuru ).
Menengai Geothermal Project is being developed through assistance from different partners and financial sponsors. These include the African Development Bank (AfDB), French Development Agency (AFD), European Investment Bank (EIB), United States Agency for International Development (USAID) and Japan International Cooperation Agency (JICA).