Financial Close Achieved for Kenya’s Menengai Geothermal Power Project, Generating 35MW with Globeleq

Globeleq, Africa’s premier independent power company, in collaboration with Geothermal Development Company (GDC), has successfully concluded the financial aspects of their $117 million Menengai geothermal project in Nakuru County, Kenya. This 35MW venture marks Globeleq’s inaugural geothermal plant and signifies a pivotal step in delivering sustainable, affordable, and consistent power to Kenya’s national grid.

The project, set to commence construction shortly by Toyota Tsusho Corporation (TTC) and its subsidiary CFAO Kenya Limited, will leverage steam resources from the Menengai steam field supplied by GDC through a 25-year agreement. Upon its scheduled commercial operation in 2025, Globeleq will manage and maintain the power plant, selling electricity to Kenya Power under a 25-year power purchase agreement.

In addition to this milestone, Globeleq is actively expanding its presence in Kenya, already operating the 52 MWp Malindi Solar PV plant and planning to augment it with 40MWac more solar capacity and a 40MW/40MWh battery storage.

Mike Scholey, CEO of Globeleq, expressed enthusiasm about collaborating with stakeholders to harness natural resources for clean and reliable power generation. He extended gratitude to partners, lenders, contractors, and off-takers for their contributions to this significant achievement.

Paul Ngugi, GDC’s Managing Director and CEO, highlighted the strategic significance of the Menengai geothermal project in Kenya’s pursuit of clean energy amid efforts to decarbonize the economy.

Dr. Kevin Kariuki from the African Development Bank emphasized the Bank’s commitment to sustainable energy projects, praising the collaboration and dedication that enabled the Menengai geothermal project.

Michael Awori, CEO of TDB, and Helena Teppana, Finnfund’s Associate Director, also underscored the project’s role in supporting Kenya’s energy transition and emphasized the importance of investments in renewable energy for a greener future.

Overall, the financial close of the Menengai geothermal project stands as a testament to collaborative efforts driving sustainable energy initiatives, aligning with Kenya’s goals of meeting its electricity needs through clean energy by 2030.