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In Kenya’s draft Energy Policy and Vision 2030, the government highlights its need to work with the private sector to develop geothermal resources and reach its targets for increasing Kenya’s installed capacity. As part of this effort, in 2008 the government created the GDC, which is Kenya’s state-owned agency responsible for geothermal exploration and development. This body absorbs exploration and early development risks by confirming the viability of potential geothermal resources through technical studies and exploratory drillings. It then offers geothermal resources to potential power developers through competitive tendering.86 The geothermal development in the Menengai field is being carried out under this model. The development in the Menengai field differs significantly from previous geothermal projects completed in Kenya because this is the first development in the Menengai field and also because of the role of the GDC. The GDC is looking for two IPPs, which will each install a 30–35 MW modular power plant on a Build-Own- Operate basis. These plants will be developed on the Menengai geothermal field, which is licensed to the GDC, and will use steam from wells that have been drilled and confirmed by the GDC. The IPPs will enter into a Project and Steam Supply Agreement with the GDC. The feed-in- tariff regime would govern the rates paid under the PPAs.87 The IPPs will also finance and install the connection to Kenya Electricity Transmission Company (KETRACO)’s substation, and will enter into a PPA to sell the electricity to Kenya Power and Lighting Company Limited (Kenya Power). This project is expected to last for 25 years and to be followed by additional developments; the GDC plans to develop a 400 MW power station at the Menengai field. Companies submitted their information for prequalification in July 2014 and the GDC planned to commission the plants by the end of 2015.88 86. Magnus Gehringer and Victor Loksha, Geothermal Handbook: Planning and Financing Power Generation (Washington, DC: The International Bank for Reconstruction and Development, Technical Report 002/12, June 2012), accessed October 22, 2014, http:// www.esmap.org/sites/esmap.org/files/DocumentLibrary/FINAL_Geothermal%20Handbook_TR002-12_Reduced.pdf. 87. The Ministry of Energy has issued the Feed-In-Tariffs Policy on Wind, Biomass, Small-Hydro, Geothermal, Biogas and Solar Resource Generated Electricity, which provides guidelines for PPAs and the feed-in tariff based on the size and type of generation. It was first issued in March 2008, and was revised in January 2010 and December 2012. 88. Geothermal Development Company, “Prequalification for Supply & Installation of Two (2) Geothermal Modular Power Plants Each of 30–35MW at Menengai Field Under Public Private Partnership on a Build Own Operate Basis,” accessed November 6, 2014, http:// www.gdc.co.ke/images/Tenders/tender_docs/076_PQ_For_Modular_Power_Plant.pdf. 47PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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