- Globeleq, an Independent Power Producer (IPP), has secured a $72 million loan for its investments in western Kenya.
- The Menengai geothermal project will build a 35 MWe power plant that will run on steam generated from the earth’s natural heat and is being implemented through a partnership between the Kenyan state-owned Geothermal Development Company (GDC) and Globeleq.
Globeleq, an Independent Power Producer (IPP), has secured a $72 million loan for its investments in western Kenya. The funding will aid the Menengai geothermal power plant construction in the Rift Valley, west Kenya. The funds are being provided by the African Development Bank (AfDB), the Trade and Development Bank of Eastern and Southern Africa (TDB) and Finnfund, a Finnish investor. However, the construction of the Menengai plant will require an investment of $108 million.
Globeleq, which is developing the Menengai geothermal project, is 70% owned by British International Investment, the financial arm of British diplomacy, and 30% by the Norwegian Investment Fund for Developing Countries (NORFUND). On the sidelines of COP27 in November 2022 in Egypt, the British government pledged more than $4 billion in investment in Kenya, including $103 million for the Menengai geothermal project.
The UK IPP also has a 25-year power purchase agreement (PPA) with the state-owned Kenya Power. With all necessary approvals, Globeleq plans to break ground on the Menengai steam plant in the first quarter of 2023. The potential of this site located in Nakuru County is estimated at 7,000 MWe by the Kenyan government. The Menengai geothermal project will build a 35 MWe power plant that will run on steam generated from the earth’s natural heat and is being implemented through a partnership between the Kenyan state-owned Geothermal Development Company (GDC) and Globeleq. Under the terms of the agreement between the two companies, Globeleq will purchase geothermal steam from GDC over 25 years.