Kenya has received a $16.5 million funding for the implementation of the OrPower Menengai Geothermal project. The loan was approved by the African Development Bank (AfDB) in November to facilitate the country’s geothermal development. The funding covers the development of the 35 megawatt OrPower Twenty-Two (OTTL) Geothermal Power Plant. It is a flagship renewable energy project set to strengthen Kenya’s baseload power generation.

Furthermore, it is expected to accelerate the nation’s clean energy transition. The project is being developed by OTTL, an Independent Power Producer (IPP) operating in the Menengai geothermal field. Once complete, the OrPower Twenty-Two facility will become the third power plant in the Menengai field. It will also compliment the operational 35 MW Sosian Menengai Geothermal Power Plant and the 35 MW Globeleq Menengai Geothermal Project.

The Globeleq Menengai is currently under construction with separate African Development Bank financing. Together, the three plants will also unlock the full 105 MW potential of the first development phase of the Menengai geothermal field. AfDB’s commitment to promote renewable energy across Africa shines through with facilitation of projects such as Congo’s hydropwer feasibility studies project.

Significance of the OrPower Menengai Geothermal Project in Kenya

The completion of the OrPower Menengai geothermal project is expect to have a major significance in various aspects. One of them is an affordable and sustainable baseload electricity to Kenya’s national grid. Furthermore, this will be done at one of the lowest tariffs in the country. This will help reduce overall electricity costs and improve supply reliability. Once fully operational, the plant is also expected to generate approximately 301 gigawatt-hours of clean, reliable electricity annually. It will also play a critical role in diversifying Kenya’s energy mix. Moreover, it will reduce dependence on costly diesel-fired power generation.

The plant is also expected to deliver significant climate benefits. These includes the avoidance of an estimated 1.9 million tonnes of greenhouse gas emissions over the 25-year duration of the PPA. OTTl Director Qi Jingwen said the project reflects the company’s commitment to climate action and technological innovation. “We are honoured to be constructing the OrPower Menengai Geothermal Power Plant using independently developed, fully proprietary next-generation geothermal power technology. We are also fulfilling our corporate mission of contributing to saving the planet,” Jingwen said. The African Development Bank’s financing complements additional funding expected from the International Finance Corporation (IFC).

Project Factsheet

Project

OrPower Twenty-Two (OTTL) Geothermal Power Plant

Capacity: 35 MW

Location: Menengai Geothermal Field, Kenya

Financing

African Development Bank loan: $16.5 million

Additional funding also expected from IFC

Developer

OrPower Twenty-Two Limited (Independent Power Producer)

Project Context

Third geothermal plant at Menengai

Also completes Phase I total capacity of 105 MW alongside Sosian and Globeleq plants

Power Output

301 GWh of electricity annually

Baseload supply at low tariff

Strategic Impact

Strengthens grid reliability

Also reduces dependence on diesel-fired generation

It also lowers overall electricity costs

Environmental Impact

Avoids 1.9 million tonnes of greenhouse gas emissions over 25 years

Status

Financing approved

Project also under development