Globeleq reaches financial close for Menengai geothermal plant

Globeleq has announced it has reached a financial close for the Menengai geothermal plant in Nakuru County in Kenya. The financial close follows the COP28 global gathering, where 118 countries, including Kenya, committed to tripling renewable power capacity by 2030.

The African Development Bank (AfDB) served as the mandated lead arranger (MLA) for the US $117M financing, in collaboration with the Eastern and Southern African Trade & Development Bank (TDB) and Finnfund.

The Menengai geothermal plant is a greenfield project forming part of the first phase of the larger Menengai complex. Globeleq, is leading the project, contributing equity, project development, and  construction management expertise.

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Vision 2030

The Menengai geothermal project aligns with Kenya’s Vision 2030, aiming to enhance the country’s energy supply and security through the use of renewable energy sources. The geothermal plant is expected to be operational in 2025 and will input renewable energy directly into Kenya’s national grid.

After completion, Globeleq will operate and maintain the geothermal power plant. The electricity generated will be sold to Kenya Power, the national distribution company, under a power purchase agreement for 25 years.

The project is expected to create around 200 job opportunities for local workers during the construction phase. Once operational, 35-40 permanent jobs will be available for both staff and contractors.