GEOTHERMAL TO CUT AFRICA POWER COSTS

Geothermal power to help cut production costs
Bernard Sanga, August 30, 2010 (The East African)

"The Geothermal Development Company (GDC), a government-owned firm has harnessed steam equivalent to 80MW of electricity in the past six months, signaling Kenya’s resolve to seek alternative reliable energy to bring down the cost of manufacturing and spur economic growth…[This increases] the quantity of geothermal energy produced in the country to 209MW.

"The plan resonates with…manufacturers’ calls for the reduction of energy costs, currently consisting of about 40 per cent of the total manufacturing costs…According to the Kenya Manufacturing Association, the high cost of energy has continued to erode the country’s products competitiveness in the regional and international markets."

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"The association has particularly been lamenting that the country’s energy cost — four times higher than that of its major Comesa bloc trading partner Egypt – is a hindrance to the country’s efforts of becoming a middle income economy by 2030 as per the economic blue print Vision 2030…GDC chairman Paul Gondi said the company’s goal is to accelerate the development of [Kenya’s 10,000 MW geothermal energy potential] as one way of cushioning manufacturers from high costs of production…

"…[Gondi] said that the company has acquired two rigs which will commence drilling in the Menengai area later this year, increasing the number of rigs to five. GDC uses hired rigs in drilling Ol Karia Domes and Ol Karia IV geothermal sites."

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"The government, he said, was keen to inject 3,000MW of geothermal electricity into the national grid by the year 2020, and increase the figure to 5,000MW by 2030…This will cushion manufactures from the adverse effects occasioned by perennial power outages that have forced the government to invite emergency independent power producer who use diesel to generate electricity…This stop-gap measure…increases the cost of energy and causes massive pollution.

"…Ormat runs a 48MW station in the Ol Karia Complex and flower firm Oserian Development Company operates a 4MW station…Mr Gondi said that the GDC is currently also drilling in the Ol Karia Domes to supply KenGen with steam equivalent of 280MW for the Ol Karia I & IV power plants…The GDC is also undertaking exploratory work in East Pokot and Turkana in northern Kenya and in Homa Hills located in Nyanza."