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Geothermal

Thursday
17 Aug 2023

Baringo-Silali Field Is Kenya's Next Big Geothermal Bet

17 Aug 2023  by thinkgeoenergy   

Rig-up at Korosi prospect, Baringo-Silali, Kenya (source: GDC)
With Olkaria firmly established and the development in Menengai off to a good start, the Baringo-Silali geothermal field is expected to be the next site to help propel the growth of geothermal in Kenya. Three prospects – namely Paka, Korosi, and Silali – are currently at varying stages of exploration within the Baringo-Silali geothermal field.

The Baringo-Silali geothermal field has been described to have a total geothermal potential capacity of 3000 MW. Recently, well testing of Paka Well 8A indicated a conservative output estimate of 22 MW. This is a remarkable result for a single well and is demonstrative of the yet-untapped potential in Baringo-Silali.

“Having one well discharging steam at 22MW is equivalent to drilling about four wells that discharge at 5MW. When you consider that to drill a well costs $5 million (Sh700 million), it is a huge saving. Silali is a very productive area,” commented Cabinet Secretary for Energy and Petroleum Davis Chirchir.

Drilling at Baringo-Silali is being done by state-owned Geothermal Development Company (GDC). The company has currently already drilled wells that can support up to 70 MW of output and aims to increase this to 100 MW by the end of the year. GDC expects that there will be a geothermal power plant at Baringo-Silali feeding electricity to the grid by 2028.

GDC Chief Executive Paul Ngugi said that the first phase for the development of Baringo-Silali is targeting a total capacity of 300 MW – 100 MW each from Paka, Korosi, and Silali. Of these three, Paka is at the most advanced stage of exploration.

GDC has stated that there are plans to invite power companies to build the power plants in Baringo-Silali. CS Davis Chirchir echoes this sentiment, stating that there will be a tender and that the independent power producers (IPPs) can sell electricity to Kenya Power at between USD 6-7 cents (between Sh 8 to 10) per kWh.

A competitive tender process

In 2021, the Presidential Taskforce on Review of PPAs recommended that state firm KenGen be given the first right of refusal to the geothermal fields that GDC has de-risked through drilling and surface facilities construction. This was a measure proposed to avoid the delays that have occurred in Menengai.

“The taskforce found it inconceivable that KenGen did not qualify for projects tendered by GDC for stream conversion,” said the report by the taskforce.

Chirchir noted that KenGen can be selected as the developer if they can offer power at lower prices. However, a competitive process has to be maintained so that power prices can be kept low, thus benefiting the Kenyan end-users. Chirchir said that KenGen is also developing solar and hydro power projects and that he does not want them to be over-stretched.

“If Kengen can deliver at 4 to 5 US cents, we should do it. If somebody else can deliver at a better cost, why not?” concluded Chirchir.

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