Oserian Two Lakes Power’s (OLTP) geothermal power plant is an important part of Kenya’s renewable energy and climate change prevention strategy. OLTP engaged POWER Engineers for support in ensuring a total load of 8 MW can be provided to industrial clients at Oserian via a high-voltage interconnection to Kenya Power and Light Company’s (KPLC) 33 kV distribution grid located nearby to avoid short-term use of diesel generation while OLTP further develops its geothermal resources.

K&M was engaged by POWER Engineers on a project to support the development of a geothermal/solar hybrid industrial park in Naivasha, Kenya, by providing an analysis of the requirements for interconnection of the industrial park to the national grid of Kenya to supply backup power. This project will provide technical assistance for the specification and design of a synchronized interconnection between the nearby 33kV KPLC line to the OTLP 11kV mini-grid.

K&M’s scope of work includes the following:

• Assessing the commercial and economic viability of the KPLC interconnection and its impact on the cost of power to OTLP’s industrial clients
• Identifying the factors that influence the economics of the project and of combined power provision by both geothermal resources and the KPLC distribution grid
• Recommending an operating procedure for decision makers to choose between OTLP geothermal/solar and KPLC grid-provided power

As part of its scope of work, K&M considered a range of technical options coupled with capital and operating expenditures (CAPEX, OPEX) to assess the economics of grid-supplied vs. geothermal-supplied electrical energy. K&M will incorporate factors such as KPLC time-of-use and bulk rate electricity tariffs, expected utilization characteristics of OTLP electrical load (timing, intensity, duration), and estimate investment and operational requirements to model and evaluate the project economics. K&M will identify factors that influence the economics of the project and evaluate their sensitivity and impact during fluctuations. Lastly, K&M will provide clear recommendations and operating procedures that identify when to use OTLP-provided geothermal power and when to use KPLC grid-provided power.

K&M compared the two (2) options (OTLP or KPLC supplied energy) on the basis of the lowest cost per unit of electricity under standard assumptions and produce a Cost-Benefit Analysis for the project.