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Questions as Indonesian firm set for energy deal

Indonesian energy firm PT Pertamina Geothermal Energy is seeking entry into Kenya’s power production sector following a deal to develop two geothermal fields in Suswa and Olkaria.

With plans to build power plants with an electricity generating capacity of more than 300 megawatts (MW) in the first years in the two fields, the firm could in the coming years become one of the biggest power producers in the country.

The firm is set to partner with the State-owned Geothermal Development Company (GDC) in exploring and later developing geothermal power plants at Suswa in Nakuru County.

The plans to partner with GDC come in the wake of the controversy generated by a privately initiated investment proposal by Adani Energy Solutions to build high-voltage transmission lines in Kenya.

Players opposing the Adani proposal have cited the failure to engage Kenyans in the process of bringing the Indian firm on board. In the onboarding process of PGE into the Suswa fields, the government also appears to have skipped the competitive bidding process.

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