AfDB committed to financing geothermal development at Menengai, Kenya
With $120 million in funding committed for the geothermal development of GDC at Menengai, Kenya, the African Development Bank has confirmed the further support of development.
As key financing entity of the geothermal development of Kenya’s Geothermal Development Company (GDC), the African Development Bank (AfDB) has confirmed its commitment to further support development
During a visit to review the Menengai Geothermal Project, the bank’s Executive Director for Eastern Africa Region Dr Calleb Nyamajeje congratulated GDC for its efforts towards renewable energy and on cutting the cost of electricity. He lauded GDC for coming up with a model that ropes in Independent Power Producers (IPPs) towards geothermal development in the country.
“I am happy that IPPs are now ready to put up power plants. That is a major milestone for GDC and AfDB,” he said at the Menengai Geothermal Project in Nakuru County. GDC is drilling for steam power in Menengai. GDC Managing Director & CEO, Eng Johnson ole Nchoe said through Menengai, GDC will offer the cheapest tariff of power at $0.077 kWh (Sh7/ kWh).
As reported previously construction on three IPP geothermal power plants with a combined power generation capacity has been kicked off. With some delay, conditions precedents have been dully fulfilled by GDC, as reported by Standard Media in Kenya.
Another challenge to the kick off of construction was the issue of land utilisation for the planned plants, but with the recent leasing of the land from Kenya Forest Service, GDC has cleared that obstacle as well.
GDC further secured a positive and independent assessment of the availability of steam to last for 25 years from West Jec of Japan, supported by JICA. According to the report steam is sufficient for the development of 105 MW in geothermal power generation capacity plus 20% extra capacity.
AfDB is a key financier of the Menengai Geothermal Project at cost of $120 million.
Source: Standard Media