Page 12 - AfrElec Week 36 2021

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an equity injection into Eskom, conditional the continued utilization of the resource. regarding our Olkaria complex operations and
on it closing down coal-fired plants, and as With coal comprising the primary power its PPA. Ormat is engaged in conversations
guarantees for further borrowing, he said. generation source in South Africa, and the with the Kenya National Assembly to respond
Some of the money could also be used to country’s demand increasingly rapidly, Eskom to their requests,” the company said in the
cushion communities from the impact of the is committed to improving its environmental fillings.
coal plant closures, he said. footprint while increasing power supply. Ormat adds that the letter was sent in
Masondo first raised the possibility of “We need large geological structures to July after President Kenyatta established
forgiveness to solve Eskom’s debt problem on ensure that the carbon dioxide is captured and a taskforce to review the expensive Power
July 30. He gave little detail at the time. stored safely so it cannot escape,” stated de Purchase Agreements (PPAs) between various
“It seems very dangerous for someone at Ruyter. Independent Power Producers (IPPs) and
the head of National Treasury to be talking Despite the accelerated uptake of Kenya Power—the State power distributor.
about sovereign debt forgiveness,” said Peter renewable energy developments across the The American company indicated that
Attard Montalto, head of Capital Markets country, power demand in South Africa though it had production disruptions at the
research at Intellidex. Private investors are continues to significantly outweigh supply. Olkaria complex, shareholder interest was
“unable to undertake this given their fiduciary Rather than abandon fossil fuel power protected by the Kenya Power agreements
duty as they get nothing to fill the hole that generation, carbon capture offers the best from variation in electricity generation due to
would be left,” he said. solution to maintaining an environmentally fixed payments.
friendly power source. “The company continued to experience
ENERGY CAPITAL &POWER certain curtailments in the first and second
quarters of 2021 by KPLC in the Olkaria
CARBON CAPTURE complex. The impact of the curtailments is
CORRUPTION limited as the structure of the PPA secures
South Africa considers Kenyan MPs probe US the vast majority of the company’s revenues
with fixed capacity payments unrelated to the
carbon capture in the move energy company’s deals electricity actually generated,” it added.
Since 2000, Ormat has developed and
to a greener energy future expanded the Olkaria III complex in phases
and increased its generating capacity from 13
South Africa’s state-owned electricity utility, with Kenya Power MW to 139 MW by 2016.
Eskom, is considering the utilization of carbon The National Assembly is investigating The scope of the project covered drilling
capture technology at a number of its coal- American energy company Ormat of new wells, adding a new Ormat Energy
fired power plants, pending financial viability. Technologies’ deals with Kenya Power and Converter unit, and optimizing other existing
With the country pursuing cleaner energy Lighting Company (KPLC). units.
sources in the transition to a greener future, In its filings with the US Securities
carbon capture will enable the utilization of Exchange Commission (SEC), Ormat says
coal in a more sustainable manner. Kenyan MPs have requested details of their
Eskom CEO, Andre de Ryter, suggests operations at Olkaria and agreements with SOL AR
that carbon capture will allow the significant Kenya Power.
reduction in greenhouse gas emissions – “Ormat received a letter from the Kenya CrossBoundary Energy
of which the company is currently South National Assembly with a request to respond
Africa’s largest contributor – while enabling to various questions and to provide materials

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