Why GDC should have government-backed revolving fund

The government should establish a revolving fund for the Geothermal Development Company (GDC) to power Kenya’s dream of geothermal generation.

While on a tour of GDC projects in the Baringo-Silali geothermal field, the National Assembly’s Public Investment Committee on Commercial Affairs and Energy led by its chairperson David Pkosing underscored the strategic role played by GDC in realizing green energy.

A geothermal well at Paka Hills

GDC Managing Director Paul Ngugi told the parliamentarians that the parastatal operates in remote areas where logistics are a big challenge.

“GDC is forced to pave its own roads running into hundreds of kilometers and to lay water systems,” Ngugi said, noting that GDC needs more financial support to execute its mandate.

So far, GDC has successfully harnessed 75 MW of steam at Paka field for electricity generation. The parastatal has moved to Silali where drilling for steam is ongoing.

Ngugi says the Geothermal Development Company is endowed with great scientists and engineers and the only challenge is in cash flow.

Geothermal Development Company, Managing Director, Paul Ngugi

In the past, GDC successfully developed geothermal steam at the Menengai Geothermal Project in Nakuru County where Sosian Power, an IPP, is already generating 35 MW of Power. Another IPP called Globeleq is constructing a power plant to generate 35 MW.

Ngugi told the legislators that GDC has so far drilled geothermal wells with a capacity to generate 560 MW of electricity.

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