Kenya has secured a KSh2.1 billion loan from the African Development Bank to fast-track the construction of the Menengai Geothermal Power Plant in the Rift Valley region, a development that is set to improve the supply of clean energy in the country.
Menengai Geothermal Plant to Produce Full 105MW Output
This financing will be used in the development of the 35-megawatt OrPower Twenty-Two (OTTL) geothermal plant in the Menengai geothermal field in Nakuru County, which is considered the richest source of geothermal energy in Kenya.
There are already two existing projects in the place Menengai, namely the already operational 35MW Sosian Menengai power generation project and the under-construction Globeleq Menengai power generation project that is also set to produce electricity to the tune of 35MW. This way, when the OTTL power generation project is completed, Menengai Geothermal Power Plant shall attain its full capacity regarding the power produced in the Phase I capacity of 105MW.
The power project is developed by OTTL, which acts as an independent power producer, with geothermal steam provided by the state-owned firm, Geothermal Development Company (GDC). The power to be generated will all be acquired by Kenya Power and Lighting Company (KPLC).
Once it is up and running, the Menengai power plant is expected to produce 301 gigawatt-hours per year to ease the pressure off the national grid and support economic growth.
AfDB’s Director of Energy Financial Solutions, Wale Shonibare, said the project highlights how partnerships between the public and private sectors can unlock investment in clean energy.
“The Menengai model demonstrates the ability of public-private partnership mechanisms to mobilize private capital towards geothermal energy development with resultant future gains for Kenya’s energy sector/Citizens.”
According to OTTL Director Qi Jingwen, apart from electricity generation, the benefits of the proposed Menengai geothermal power plant lie in its positive impact on the environment. “It will save an estimated 1.9 million tonnes of greenhouse gases over its 25-year life span and also feature highly advanced geothermal technologies in Africa.”
The financing provided by the AfDB forms part of the bigger picture of the Kenya’s Mission 300 Energy Compact, which includes increasing the nation’s geothermal power by almost double to 1,824MW by the end of 2030, building on the nation’s quest towards achieving 100% clean energy.
All this has come in addition to fresh funding from the International Finance Corporation, whose addition brings total debt to 8.3bn/KShs whereas the total project costs are estimated at 11.8bn/KShs.
Players in the energy industry say the Menengai Geothermal Power Plant is a crucial undertaking in the creation of a clear energy future, assuring the country of energy supply sustainability, cheaper electricity rates, and an enhanced climate change target.
