Olkaria I and IV projects to decrease power prices in Kenya
Wellhead geothermal plant by Green Energy Group on location with KenGen in Olkaria, Kenya (source: Green Energy Group)
Alexander Richter
7 Oca 2014
The geothermal projects at Olkaria I and IV are expected to decrease power prices to consumers and businesses to about a third of current prices of ca $0.18 per kWh. While slightly delayed, the projects are expected to be ready by August 2014.
Local news report from a recent visit of the Kenyan Cabinet Secretary in the Ministry of Energy to Olkaria. At the visit with KenGen’s CEO and government representatives, the projects were described as key to bringing down electricity tariffs for households and businesses.
The first phase of 140 MW development was supposed to be completed between January and February 2014, but it now does not look like it will be ready . The second phase of another 140 MW is still expected to be ready until July and August 2014. Contractors and the developer have reassured that remaining work on Phase 2 will be ready in the set timeline.
When the plants go online, they are expected to drop down power prices as the cost of energy is only around $0.02 per kWh. Currently consumers pay Sh16 per kWh ($0.18), but this is expected to drop to Sh6 per kWh ($0.06).
It is expected that another 350 MW in geothermal power generation capacity could be added at Olkaria, 600 MW at Suswa and the Baringo-Silale area with a potential of 140 MW.
Source: Standard Media, Capital FM
