The exploration of two geothermal fields in Kenya, developed by PGE in collaboration with its two partners, is expected to commence later this year. 

In high-level talks held at GDC's headquarters in Nairobi on March 6, 2024, PGE and GDC discussed the support from the Kenyan government for accelerating the geothermal field development project in Suswa, a volcanic area located in the Narok region of Kenya. GDC is a geothermal developer wholly owned by the Kenyan government.

CEO of PGE, Julfi Hadi, said the meeting in Nairobi is a follow-up to the initial agreement reached with GDC and AGIL in 2023. 

On September 15, 2023, PGE and GDC signed a Non-Disclosure Agreement (NDA) for the development of geothermal potential in Kenya and Indonesia. Previously, on August 22, 2023, PGE and AGIL signed a Memorandum of Understanding (MoU) for the development of the Longonot geothermal field located in the Great Rift Valley region, Kenya. 

One of the main agendas of the follow-up meeting with GDC was to discuss the preliminary technical studies conducted by PGE on the Suswa field, estimated to have a potential resource of 200 MW. 

However, further studies are needed to confirm the resource potential through exploration drilling. Therefore, PGE and GDC have planned to sign a Joint Development Agreement (JDA) that will outline GDC's role in the exploration of the first two wells through the government drilling scheme and the possibility of further exploration on three other wells to be conducted by PGE.

"We aim to implement the JDA by mid-2024, with GDC starting drilling by the end of 2024 or early 2025," Julfi Hadi said on March 9, 2024.

According to PGE's Director of Exploration and Development, Rachmat Hidajat, after the exploration drilling, a feasibility study will be conducted to secure a power purchase agreement with a viable tariff. 

"Acceleration needs to carefully consider all stages and various aspects to make the project's progress clearer and more measurable," Rachmat said.

The phased development acceleration of the Suswa Field comprises four units of 50 MW each, with the target commercial operation date (COD) for Unit 1 in 2027. 

The main goal is to make the Suswa project a world-class geothermal field with a capacity of 500 MW. Meanwhile, PGE and AGIL have also agreed on various technical aspects, including the establishment of a joint venture to develop the Longonot field. 

Additionally, PGE and AGIL have agreed to a power purchase of 140 MW, and for the initial phase, PGE will conduct exploration drilling for 35 MW, targeting on-stream status by 2027. 

"To accelerate the implementation of this agreement, the parties will sign a definitive agreement after obtaining internal corporate approvals," Julfi Hadi said.