Steam gathering system at the Menengai geothermal field in Kenya (source: Sosian Energy)
The African Development Bank further supports development of the Menengai geothermal field in Kenya with a $16.5 million loan to IPP OrPower 22.
The Board of Directors of the African Development Bank Group (AfDB) has approved a loan of $16.5 million to support the 35-MW geothermal power plant under development by OrPower 22 (OTTL) at the Menengai field in Kenya. Construction of the power plant has already been completed and it is expected to start operations by March 2026.
The AfDB has played a prominent role in the development of the Menengai field. It had initially provided financing of $145 million to the Geothermal Development Company (GDC), the government-owned corporation that drilled wells in the field and constructed the steam gathering system and associated infrastructure. The bank then provided financing support to Quantum Power East Africa in 2018, which was then acquired by UK-owned Globeleq in 2021. In 2022, Globeleq received further financing from AfDB.
The OrPower 22 geothermal power plant will be the second power plant to go online in the Menengai, following the first one by Sosian back in 2023. The third power plant, by Globeleq, is expected to finish construction by June 2026. Electricity produced from the OrPower 22 power plant will be purchased by Kenya Power and Lighting Company, which will be the sole offtaker for the plant, under a 25-year Power Purchase Agreement (PPA).
“The Menengai model demonstrates the power of public-private collaboration, where government-led resource development unlocks private investment in geothermal generation, delivering mutual benefits,” commented Wale Shonibare, Director of the AfDB’s Energy Financial Solutions, Policy, and Regulations Departmen
“Geothermal Development Company secures stable revenues from steam sales, allowing it to monetise its significant investment in Menengai and reinvest in expanding geothermal development nationwide, while the private sector drives efficient power generation.”
“We are honoured to be constructing the Orpower Menengai Geothermal Power Plant using independently developed, fully proprietary next-generation geothermal power technology thereby fulfilling our corporate mission of ‘contributing to saving the planet’,” OTTL Director, Qi Jingwen said. “Support by international financial institutions will enable deeper participation in the development of new green energy in Africa.”
Source: African Development Bank