Kenya Power and private developer sign PPA for Longonot project
Kenya Power and private developer Africa Geothermal International Kenya Limited (AGIL) sign 25-year Power Purchase Agreement for the 140 MW Longonot geothermal power project adjacent to Olkaria, Kenya.
This morning Kenya news report that Kenya Power and Africa Geothermal International Kenya Limited (AGIL) have signed a power purchase agreement (PPA) for the development of the 140 MW Logonot project adjacent to Olkaria, Kenya.
Under the PPA, AGIL will develop, own and operate the project and Kenya Power purchase the power produced.
The signed PPA has a term of 25 years and will start with the start of operation, which are expected to start in 2018.
Fassine Fofana, the Chief Executive Officer of AGIL, stated that the project was a significant milestone for the geothermal industry in Kenya and East Africa as it would bring into the geothermal sector, private investment for a major greenfield project.
”This 140 MW PPA provides the AGIL stakeholders the off take certainty needed to advance the project and provides Kenya Power with an important addition to their generation plan,” said Fofana.
AGIL has performed all of the surface exploration and development activities to ready the project for drilling expected to commence in early 2014.”
Source: Citizen News