Kenya Electricity Generating Company (KenGen) has rolled out a Sh224.41 million (€1.52 million) feasibility study to determine the possibility of extending the life of Olkaria II geothermal power plant for 25 years.
The firm has disclosed that it has hired a Turkish and Italian firm to undertake a feasibility study on the 105-megawatt (MW) power plant that has been in operation for 20 years.
KenGen says in the tender award document that it signed the feasibility study contract with a joint venture of ELC Electroconsult SPA and Pozitif Enerji on April 3. The contract will run up to April next year—just about two years before the end of its power purchase agreement (PPA) with Kenya Power.
ELC is an independent Italian engineering consultancy specialising in power transmission and distribution while Pozitif is a Turkish energy consultancy that specialises in reducing costs in energy supply process management.
The study will guide KenGen on how to go about rehabilitation or redevelopment of the Olkaria II plant that lies within the expansive Olkaria geothermal field.
The plant has three generating units of 35 MW each totalling an installed capacity of 105MW with a net power export to the national grid of 101 MW as per the Power Purchase Agreement (PPA) with Kenya Power. Units 1 and 2 were commissioned in 2003/2004 while Unit 3 was brought online in 2010.
The project was co-financed by the European Investment Bank, International Development Association, and Agence Française de Développement (AFD).
The government saw the Olkaria project as a way of lowering the cost of power by displacing expensive thermal energy and stabilising the power supply by reducing over-dependence on hydropower, which is prone to erratic weather patterns.
However, KenGen notes, that the power plant has experienced wear and tear during its two decades of operation, leading to increased operation and maintenance costs. The firm adds that spares for this plant are also proving challenging to acquire from original equipment manufacturers due to their obsolescence.
“Against this background, KenGen intends to conduct detailed investigations and studies on the current condition of Olkaria II Power Plant and assess the feasibility of rehabilitating/ redeveloping the plant and steam gathering system,” said KenGen, when it put up a tender to open the search for a consulting firm to conduct a feasibility study.
“A feasibility study on rehabilitation options is required to ascertain the possibility of extending the power plant’s life beyond its current economic life for a further 25 years.”
KenGen says there is potential to benefit from adopting new technologies, which may result in increased power output arising from better efficiencies and steam utilisation.
Despite the aging power plant, the geothermal reservoir and the steam field are still in good status and capable of sustaining production for many more years, according to KenGen.
The PPA term for the plant expires in 2028 and therefore the feasibility study on rehabilitation options will guide KenGen on whether it can extend the usefulness of the plant and sign a new PPA.
