Kenya’s state-owned Geothermal Development Corporation (GDC) has secured a $5 million grant from the African Union (AU) for geothermal exploration of the Paka Geothermal Project in Baringo.
The move comes after the signing of an agreement for the Geothermal Risk Mitigation Facility (), a risk mitigation facility that was set up in 2012 by the African Union Commission (AUC).
According to GDC Managing Director and CEO, Jared Othieno, the funding will go towards the cost of the exploration drilling, and is expected to support 40% of the total drilling cost (drilling and testing program) and 20% of the total infrastructure development (infrastructure upgrade) cost of the project.
Under the agreement, GDC will drill two deep geothermal wells and upgrade the existing infrastructure, thus allowing further development of the project area’s geothermal resource.
GDC is looking to produce 1,065 megawatts by 2030, with the Paka project targeted to generate 100MW.
The other members of the GMRF include the German Federal Ministry for Economic Co-operation and Development (BMZ), the EU-Africa Infrastructure Trust Fund (EU ITF) and the UK Department for International Development (DFID).