Thursday, November 7, 2019

Kenya: Private Investor Would Have 75% Stake in New 140 MW Olkaria Geothermal Power Plant

KenGen to cede 75pc in geothermal venture (Business Daily)

Kenya reach the 1GW club? By Greg Rhodes, Somerville, Massachusetts, USA. Overlooking the Olkaria geothermal field in Kenya. November 2018. GRC PHOTO CONTEST 2019.
State-owned electricity producer Kenya Electricity Generating Company (KenGen) is seeking a joint venture (JV) with an external investor as it looks to raise the stock of green energy.

KenGen, which has a 1,796.4 megawatt annual capacity and supplies 75 percent of the Kenya’s electricity, said the successful firm will enter into a joint venture with KenGen and create a special purpose vehicle (SPV) to finance and develop a 140 megawatt (MW) geothermal plant in Olkaria, Naivasha. The firm will have a majority 75 percent stake.

“KenGen has drilled and tested all production wells required for the project and will be responsible for the operation, maintenance, and management of steam supply to the project,” said KenGen. “KenGen will be a shareholder in the SPV with a shareholding of 25 percent.”

“The SPV will be responsible for the development, design, financing, construction, operation and maintenance of the project.”

The power firm said it will also enter into a long-term power purchase agreement (PPA) with Kenya Power as off-taker.

Fromm the Global Geothermal News archives: