Kenya boosts power generation with $300m Suswa geothermal plant
Nairobi, November 19, 2018 (AltAfrica)-Kenya is set to receive US $300m from Cyrq Energy, an American company specialising in renewable energy production, for the construction 330 MW geothermal power plant in Suswa, Narok County, south-western Kenya.
Nicholas Goodman, President and CEO of Cyrq Energy, confirmed the reports and said that a feasibility study has already been carried out on the site and regulatory approval request has been sent to the competent authorities.
“The first phase of the project will be financed internally, with a mix of equity and debt, while long-term debt will be guaranteed for the other phases of the project,” said Nicholas Goodman.
Suswa geothermal project
The CEO further added that the company plans to start producing 75 MW within two years of the Kenyan authorities’ approval. The overall project is set to take an average of 3 to 4 years before completion after which electricity is first sold to the utility firm -Kenya Power under a long-term 25-year power purchase agreement.
Mr. Nicholas Goodman also a technical team and independent experts from the company assessed the geothermal resources available through a drilling programme and a study ranging from preliminary design to installation of the power plant, planned before the beginning of the project
Upon completion, the project is expected to further boost Kenya’s capacity which already ranks as the leading geothermal energy producer in Africa.
It is recalled that Kenya recently awarded a similar project, the construction of 70MW geothermal power plant in the Olkaria
Kenya Electricity Generating Company PLC (KenGen) awarded a full turn-key engineering, procurement and construction (EPC) contract to Marubeni Corporation and this will be their first geothermal power plant project in Africa.
The geothermal power project which is expected to be completed in 2021 will entail the construction of unit 6 within Olkaria1 Geothermal Power Station. The main components required for this project, including steam turbines and generators, will be provided by the Japanese firm, Fuji Electric.
Financing the geothermal power plant
This geothermal power plant will be financed by an ODA loan from Japan International Cooperation Agency (JICA), with additional loans from the European Investment Bank. Peak demand in Kenya has been increasing by an average of approximately 5% annually.
Marubeni has expressed commitment to meeting Kenya’s robust electricity demand and contributing to the Kenyan economic development.