- This DBSA funding is a part of funding the geothermal project began receiving since its commencement.
- Sosian Energy is one of the three IPPs that builds and manages geothermal power plants in Menengai, Kenya.
The Development Bank of Southern Africa (DBSA) has announced a $68 million investment to enhance Kenya’s 35 megawatt (MW) geothermal power plant and boost clean energy production.
The DBSA signed this financing agreement with Sosian Energy, an energy company in Kenya, to strengthen the country’s electricity supply. This $68 million investment is part of several investments obtained by the 35MW geothermal plant in Kenya.
Sosian Energy, operating through Sosian Menengai Geothermal Power Ltd. (SMGPL), is one of the three Independent Power Producers (IPPs) that received the rights to build and manage geothermal power plants in Menengai, Kenya.
Sosian Energy commenced construction of its now-completed power plant in 2021.
Kenya’s Geothermal Development Company (GDC) entered into a project implementation and steam supply agreement with three independent power producers on a BOO basis for the development of three power plants under the first phase. GDC will supply steam to these producers, who will convert it into electricity under this agreement.
The other IPPs include:
- Quantum Power East Africa (QPEA) GT Menengai. In 2021, Globeleq acquired QPEA, which began constructing its power plant in June 2023. In February 2023, Globeleq awarded its power plant’s engineering, procurement, and construction contract to Toyota Tsusho of the Toyota Group.
- GDC appointed Orpower Twenty-Two, a consortium comprising Ormat, Civicon, and Symbion Power, to construct and manage the second power plant in 2013, with an operational tenure of 25 years.
Mohan Vivekanandan, DBSA’s group executive for Origination Coverage, stated that the bank will provide $68 million over 12 years to support the project.
Furthermore, the group executive expressed DBSA’s excitement in signing the loan agreement with Sosian Energy for the Sosian-Menenga geothermal project. According to him, the firm will provide the total debt amount for the transaction and disburse funding for the 35MW project in Kenya’s Rift Valley this year.
“There are just one or two more specific items to be met, and all of the funds will go towards this project, which is a renewable geothermal energy project based in Kenya, which will feed energy into the grid to support Kenya’s industrialisation, to promote economic growth, and to promote social progress in the country,” he added.
Funding Received Since Commencement
- The Globeleq’s 35MW plant, part of the first phase, achieved financial close in December 2023 with the plan to develop the power plant with an estimated investment of $117 million.
- In June 2024, The African Trade and Investment Development Insurance (ATIDI) invested US$117 million in the project.
- In December 2022, the African Development Bank (AfDB), the Eastern and Southern African Trade & Development Bank and Finnfund signed a financing agreement of $72 million with Globeleq.
- AfDB approved $29.5 million in funds and a Clean Technology Fund concessional loan of $20 million to develop the power plant by QPEA on June 6, 2018.