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    Geothermal Power Development: Presentation To Institutional Investor Africa Investment Conference

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    Kenya Ict Board
    The document discusses Kenya's plans to develop geothermal power from 2016-2030. It involves drilling 900 wells and constructing 3,200MWe of power plants in phases, with 1,000MWe by 2014 and 2,200MWe by 2016. Geothermal power will provide reliable base load electricity, reduce costs, and lessen reliance on imports. It will also mitigate climate change and increase electrification. The project is led by the government through KENGEN and GDC and will tap resources at Olkaria, Menengai, Silali and Bogoria blocks.

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    Geothermal Power Development: Presentation To Institutional Investor Africa Investment Conference

    Uploaded by

    Kenya Ict Board
    886 views16 pages
    The document discusses Kenya's plans to develop geothermal power from 2016-2030. It involves drilling 900 wells and constructing 3,200MWe of power plants in phases, with 1,000MWe by 2014 and 2,200MWe by 2016. Geothermal power will provide reliable base load electricity, reduce costs, and lessen reliance on imports. It will also mitigate climate change and increase electrification. The project is led by the government through KENGEN and GDC and will tap resources at Olkaria, Menengai, Silali and Bogoria blocks.

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    Geothermal Energy

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    The document discusses Kenya's plans to develop geothermal power from 2016-2030. It involves drilling 900 wells and constructing 3,200MWe of power plants in phases, with 1,000MWe by 2014 and 2,200MWe by 2016. Geothermal power will provide reliable base load electricity, reduce costs, and lessen reliance on imports. It will also mitigate climate change and increase electrification. The project is led by the government through KENGEN and GDC and will tap resources at Olkaria, Menengai, Silali and Bogoria blocks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    886 views16 pages

    Geothermal Power Development: Presentation To Institutional Investor Africa Investment Conference

    Uploaded by

    Kenya Ict Board
    The document discusses Kenya's plans to develop geothermal power from 2016-2030. It involves drilling 900 wells and constructing 3,200MWe of power plants in phases, with 1,000MWe by 2014 and 2,200MWe by 2016. Geothermal power will provide reliable base load electricity, reduce costs, and lessen reliance on imports. It will also mitigate climate change and increase electrification. The project is led by the government through KENGEN and GDC and will tap resources at Olkaria, Menengai, Silali and Bogoria blocks.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 16

    Geothermal Power

    Development
    Presentation to Institutional Investor
    Africa Investment Conference
    Project Profile
     Drilling of 900 geothermal wells in Kenya’s Great
    Rift Valley.
    Project  Construction of 3,200MWe power plants by 2016
    Profile
     1,000MWe by 2014
     2,200MWe by 2016

     Provision of reliable base-load electricity supply


    Economic
     Reduced cost of electricity to improve economic
    Benefits competitiveness.
     Reduced country reliance on imported fossil fuels
    and weather-dependent hydro

     Mitigate climate change


    Social
    Benefits  Increase electrification access and reduce poverty
     Improve quality of life
    Sponsors Profile
     Ownership: 70% by Government of
    Kenya Kenya and 30% private
    Electricity  Asset Base: US$ 1.9 billion
    Generating
     Total installed capacity: 1,195MW
    Company Ltd
    (KENGEN)  Market share: 80%
     Mandate: Power Generation

     Ownership: 100% by Government of Kenya

    Geothermal  Mandate: Geothermal Resource


    Development Development
    Company  Drilling Capacity: 5 Rigs (procuring others)
    (GDC)
     Resource Capacity: 10,000MWe (Steam
    Equivalent)
    Project Drivers
     Stabilize and meet power supply demand
     Reduce reliance on hydro and fossil fuel

    1500 Peak Demand (MW)


    1450
    1400
    1350 1,342
    1300
    1250
    1200 1,188
    1150
    1100 1,107
    1050 1,050
    1000 1,010
    983
    950
    900 916
    850 867
    828
    800 780
    750
    700
    650
    600
    2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
    Project Drivers
     Peak Demand Projections

    2010/11 2014/15 2018/19 2023/24 2026/27 2029/30


    Project Drivers
     Earmarked Energy Sources 33,330

    Kenya plans
    to tap 6,200
    10,000MWe
    of geothermal
    power by
    2030
    12,100

    9,900

    * * * * * * *
    Project Description
    Phase I & II
    Year No. of Wells Capacity (MW)

    2013 150 -
    Phase 1 2014 150 1,000

    PHASE I 1,000

    Year No. of Wells Capacity (MW)

    2015 300 -
    Phase 2
    2016 300 2,200

    PHASE II 2,200
    Project Description
    Project Sites 3.Bogoria-Silali Block
    • 3,000MWe potential
    (800MWe by 2016)

    2.Menengai Block
    • 1,600MWe potential
    (400MWe by 2014
    and 1000MWe by
    2016)

    1.Olkaria Block
    • 1,200MWe potential
    by 2016
    • 150MWe currently
    online
    Project
    Description
    Institutional Framework
    National
    Off-Taker 2 Off-Taker 3
    Distributor
    Power Purchase
    Agreement

    KENGEN or IPPs

    Geothermal Prospects
    Mene-
    Olkaria Paka Silali
    ngai Bogoria

    Geothermal Resource
    Assessment & Development

    Geothermal Development Local & Foreign


    Company Sources of Financing
    Project Description
    Current Status - 2011
    Capital Costs
    US$ million
    Risk Mitigation
    12,000

    1.Government setting-up a
    3,500 fund for underwriting drilling
    risk
    2.Geothermal Development
    Company(GDC) will guarantee
    steam availability

    5,500

    500

    Total Drilling Steam Power Substation Consul- Admin- Interest

    Fiel Pla & tant strat During


    d nt Transm s ion Constr
    ission uction
    Expected Tariff-USD
    0.09/KWh

      Revenue Streams Units Amount

    Phase I Phase II
          (2014) (2016)
    (1,000MWe) (2,200MWe)
    Fixed Capacity Charge Rate
    1 USD/kW/yr 579 576
    (FCCR)
    Fixed Operations & Maintenance
    2 USD/kW/yr 84 84
    Charge Rate (FOMCR) - Escalable

    Variable Operating & Maintenance


    3 USD/kWh 0.009 0.009
    Charge Rate ((VOMCR)
    Capacity Payments
    4  USD/kW/yr 663 660
    (FCCR+FOMCR)
      Total Annual Revenues USD Million 704 1,545
    Financial & Technical Inputs

    Financial Inputs Technical Inputs


    1.ROE(net of tax) = 1.Term (PPA) =
    17% 25yrs

    2.Auxiliary Capacity = 5%
    2.Debt: Equity = 75:25
    3.Average Load = 95%
    3.Cost of Debt = 6.5%
    Green Energy Initiative– (A Case for Oserian
    Flowers
    Kenya gearingin
    up Kenya)
    to be the top Green Economy in Africa

    i) Roses Greenhouse
    Heating and Injection
    of CO2 to aid in
    photosynthesis

    ii) Soil fumigation and


    sterilization of liquid
    recycled plant
    fertilizers
    Geotherman Energy – Generating over 4 million
    CERs p.a by power
    Current Kenya’s 2016sources are 63% from
    green sources
    Geothermal Sites Cumulative Carbon Reductions - CERs
    Million tonnes of CO2 equivalents 8.24

    7.24

    6.24

    Olkaria II geothermal
    5.24
    project was
    2.5 MW Eburu 2011
    140 MW Menengai 2016 registered for CDM
    4.24
    140 MW Menengai 2015
    140 MW Menengai II 2014
    on 4th Dec. 2010
    140 MW Olkaria 2013
    140 MW Olkaria 2012 3.24
    35 MW Olkaria 3rd unit 2010
    280 MW Menengai 2018
    2.24
    2.00

    0.40
    0.20

    * * * * * * * * * 2020
    THANK YOU

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