Ormat completes Olkaria III expansion to 110 MW total capacity
Olkaria III geothermal plant, Kenya (source: emerging africa fund)
Alexander Richter
4 Feb 2014
Ormat Technologies completed plant three of the Olkaria III geothermal complex in Kenya bringing the total capacity of the plant to 110 MW.
In a release today, U.S. based Ormat Technologies, Inc. announced that “it successfully completed construction and reached commercial operation of Plant 3 in the Olkaria III geothermal power plant complex almost three months ahead of schedule. With Plant 3 online, the complex’s total generation capacity has increased to 110 MW. The power generated by the Olkaria III complex, located in Naivasha, Kenya, is sold under a 20-year power purchase agreement (PPA) with Kenya Power and Lighting Company Limited (KPLC).
The Olkaria III complex was financed with a $310 million debt facility provided by the Overseas Private Investment Corporation (OPIC). In November 2013, Ormat drew down the remaining $45 million available under the project finance debt facility for the completion of Plant 3.
“Olkaria III is a prime example of our multi-stage approach to project development generating higher investment returns and reducing risk. In less than one year, we’ve completed construction of two additional plants and, over the course of five years, more than doubled the facility’s generating capacity. Due to our operational expertise and innovative technology, we’ve accomplished that growth ahead of schedule resulting in a significant increase in revenues,” said Dita Bronicki, chief executive officer of Ormat. “As we complete this project, we remain committed to support the growing power needs of Kenya with this indigenous, reliable and environmentally friendly source of electricity. Kenya is an important market for our future growth due to its high geothermal potential and we are focusing our efforts on increasing our operation in Kenya.”
Source: Company release via Marketwatch
