Sosian Energy, a Nairobi-based company, has successfully secured financing for its geothermal power plant project in the Menengai geothermal field in Nakuru County, Kenya.
The Development Bank of Southern Africa (DBSA) is the sole lender, providing $68 million for the project. In August 2023, Sosian connected its 35 MWe geothermal power plant to Kenya’s electricity grid.
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Potential impact
Sosian Energy is purchasing steam from the state-owned Geothermal Development Company (GDC) to run its plant. Under the agreement, Sosian will pay GDC US $14.5M( Ksh 1.7bn) annually over the next 25 years. The electricity generated by the Menengai III plant will be sold to Kenya Power, the state-owned electricity distribution company.
DBSA highlights the project’s potential impact, noting its production cost of $0.08/kWh, making it one of Kenya’s most profitable energy sources. The plant’s use of renewable geothermal energy ensures operation without emissions, contributing to global climate goals.
The Menengai geothermal field, with an estimated potential of 70 to 140 MWe, is a significant addition to Kenya’s diverse electricity mix, where 86% of the energy comes from renewable sources such as wind, solar, geothermal, hydro, and biomass.
