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In November last year, GDC handed over three geothermal power sites to the three IPPs — Sosian Energy, Quantum East Africa and Or Power 22.
The three investors, who were selected through competitive bidding in 2013, are mandated to build operate and own three geothermal plants in Menengai, each generating 35MW.
GDC, which is financing the drilling of more wells to boost power supply, has mined steam equivalent to 110MW, which is enough for the first phase of the Menengai project.
The commission's acting director general, Pavel Oimeke, said delays in licensing, financial closure and technical hitches have contributed to delays in the setting up of the power plants by the Geothermal Development Company.
The project aims to develop the Menengai geothermal steam field to produce enough steam for 150 MW of power, which will ultimately be generated by private sector Independent Power Producers.
The project, anticipated to be completed by December 2016, will cost approximately 6 million and will enable a substantial increase in the provision of clean, reliable and affordable electricity to Kenyan households, businesses and industries.
Earliers this week, Standard Media from Kenya reports that the Sh25.5 billion (0 million) construction of three geothermal power plants in Menengai, Nakuru County, will be delayed for about two years.
Risk guarantees The project was expected to give 500,000 households and 300,000 businesses access to low-cost power under the Government’s 5,000MW initiative.
GDC Acting Managing Director Godwin Mwawongo also moved to calm fears that the project has stalled, saying all required documents would be issued.
However, once the necessary documents are handed over to the IPPs, it will take them an average of 18 months to complete the three projects.
The power stations are: This power station uses new geothermal technology jointly developed by Toshiba Corporation and Ormat Technologies Inc to harness more energy from the steam supplid to the plant by increasing efficiency.
The private IPP projects at Menengai of Sosian Energy, Quantum East Africa and Or Power 22 are delayed by around 2 years, due to the failure of governmental and other stakeholders to provide partial risk guarantees in time.