Ormat signs geothermal power agreement with Kenya utility
The Project Co. will finance, design, construct, install, operate and maintain the Menengai steam plant on a build-own-operate basis for 25 years
Ormat Technologies’ majority owned Kenyan unit (the Project Co.) owned by Ormat (51 percent), Symbion Power LLC (24.5 percent) and Civicon Ltd. (24.5 percent), signed a 25-year power purchase agreement with Kenya Power and Lighting and a project implementation and steam supply agreement with Geothermal Development Co. for the 35 MW Menengai geothermal project in Kenya.
Under the agreement, the Project Co. will finance, design, construct, install, operate and maintain the Menengai steam plant on a build-own-operate basis for 25 years.
GDC, which is wholly owned by the government of Kenya, will develop the geothermal resource, supply the steam for conversion to electricity and maintain the geothermal field through the term of the agreement. Under the PPA, KPLC will purchase all the energy generated by the project.
The Menengai project is expected to benefit from the partial risk guarantee arrangement to be provided by the African Development Bank. Moreover, this project is part of the Power Africa initiative promoted by the U.S. government. The initiative was launched by President Obama in June 2013 to increase access to power in sub-Saharan Africa. The Project Co. expects to start construction upon financial closing.