Kenya breaks ground on 35MW Menengai geothermal power project

Kenya’s Deputy President Rigathi Gachagua presided over the ground-breaking ceremony of the Menengai geothermal project in Nakuru County.

The Menengai geothermal project, being developed by Globeleq, an African-independent power producer (IPP), has a capacity of 35MW and carries a price tag of US $108M. The project is expected to be commercially operational in 2025 and will utilize a steam turbine and generator manufactured by Fuji Electric.

Globeleq, a UK-based company supported by British International Investment, secured a financing agreement in late 2022 with the African Development Bank (AfDB), the Eastern and Southern African Trade and Development Bank (TDB), and Finnfund. The agreement provided US $72M in debt funding for the Menengai geothermal project.

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Menengai geothermal project

Under a 25-year project implementation and steam supply agreement, the state-owned Geothermal Development Company (GDC) of Kenya will supply the project with steam. The electricity generated from the project will be sold to Kenya Power, the national distribution company, through a power purchase agreement for the same timeframe.

The construction of the project will be carried out in three phases, with the field development having started in 2009. The overall goal is to achieve a capacity of 465 megawatts of geothermal steam. Once completed, the Menengai geothermal project will provide clean and affordable electricity to approximately 750,000 Kenyans.

During the ceremony, Deputy President Rigathi emphasized Kenya’s commitment to achieving a 100% transition to green energy due to the country being significantly affected by climate change.

Cabinet Secretary Davis Chirchir on his part praised the de-risking concept supported by the Kenyan government through GDC, stating that it is a crucial model for expediting geothermal energy development in the country and reducing power costs for investors and households. GDC has already drilled 43 wells in Menengai, assuming the initial risks associated with geothermal project development.