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"content": "geothermal exploration exercise is very expensive. Drilling one well is very expensive. It costs about US$5 million. So, it was extremely difficult for any investor, be it the Government or private sector, to invest in geothermal energy. So, the Government created the GDC and Kenya Electricity Transmission Company (KETRACO) to fast- track the drilling. The GDC was started in 2009. Mr. Speaker, Sir, the current Chief Executive Officer (CEO) is an experienced person and has all the credentials. Also, the technical staff are experienced. Dr. Silas Simiyu is a very well experienced geothermal expert in Kenya. I do not think we have anyone else in this country like him. Contrary to what my colleague, Sen. Anyang’- Nyong’o said, the board is still intact. It is only the Chairperson who changed. Mr. Speaker, Sir, we have a potential of about 7000 megawatts, but what has been exploited so far is very little. There are two power plants which will be completed, I think by June, 2014. The one in Olkaria will produce 140 megawatts and the other one will also produce 140 megawatts; making a total of 280 megawatts. It has taken about 15 years to put up those power plants. If you get a loan of, say, Kshs1 billion and invest it in drilling, after drilling and getting the steam, you still have to wait again to get a private investor or Government to put in additional funds to establish a power plant for another 15 years. Therefore, the process of drilling up to completion may take about 20 years. With the coming in of geothermal power, we can bring down the cost of electricity in this country, hence also cut the cost of production. One well produces between five and ten megawatts. So, if we want 140 megawatts, it will require drilling more than 15 wells. Drilling one well takes about two months or 60 days. But the GDC will fast-track the drilling, hence the generation of steam. Mr. Speaker, Sir, in our Report, we have said that instead of waiting until we get to 100 megawatts to establish a viable and commercial power plant, we can still employ the technology which other countries like Philippines and Malaysia have done. One you drill a well, you can connect it to a well head generation which can generate five to ten megawatts. If the drilling takes about two months, it can be connected to the grid immediately, hence enhancing our capacity in terms of generation. Instead of talking about 1700 megawatts, if we can add even ten megawatts per month, I think that we will move forward. Mr. Speaker, Sir, I want to urge my colleagues that this is an area that we need to invest in. The investment in this area and creation of GDC was to avoid donor reliance. Other countries cannot invest where they do not see the returns. Suppose they hit a dry well and they have put in money? Therefore, we need, as a Government, to put in our local resources, so that we can drill many wells and, hence, invite private investors to invest in the geothermal plants. Last year, I saw a tender in Menengai of 30 megawatts or 90 megawatts, under private partnership, where the Government will not look for money to inject in the power plant. Instead, it is inviting private investors who have the money and potential in the sector, to partner with the GDC. Since the GDC will be a partner, they will also get some revenue to invest in more exploration in other areas. Therefore, it is good that we have put in resources. Mr. Speaker, Sir, we also went to Silale which goes all the way to Turkana County. They need resources to do the road network and water. In the previous financial The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}