Menengai Geothermal Plant (35MW)

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The project comprises the development of a geothermal power plant at the Menengai geothermal field, in Nakuru County, Kenya, by the Nairobi-based company Sosian Energy (Kenya). Sosian Energy, through Sosian Menengai Geothermal Power Ltd. (SMGPL), is one of three Independent Power Producers (IPPs) that were awarded rights to build and operate geothermal power plants in Menengai, Kenya. The total capacity of the facility is 35MW. The sponsor has successfully completed the financing with the lending of $68 million by the Development Bank of Southern Africa (DBSA) as a sole lender. The contract has been signed in July 2024. The repayment period is 12 years. In August 2023, Sosian connected its geothermal power plant to Kenya’s electricity grid. The company sources the steam required to operate the plant from the Kenyan state-owned Geothermal Development Company (GDC), which has drilled several geothermal wells at the project site. Under the terms of their agreement, Sosian Energy will pay KES 1.7 billion ($14.5 million) annually for the next 25 years to GDC through its special purpose company, Sosian Menengai Geothermal Power. The electricity generated by the Menengai III plant will be sold to the state-owned Kenya Power. The whole Menengai geothermal field, with an estimated potential of between 70 and 140 MW, will help Kenya further diversify its electricity mix. https://www.afrik21.africa/en/sosian-finally-finds-a-lender-for-its-35-mwe-geothermal-power-plant-in-nakuru/ ; https://www.sustainabilitymea.com/sosian-secures-funding-for-35-mw-geothermal-power-plant-in-nakuru/ ; https://www.afdb.org/sites/default/files/documents/environmental-and-social-assessments/sosian_menengai_geothermal_project-_esia_executive_summary.pdf ; https://www.nortonrosefulbright.com/en/knowledge/publications/ed7d5a3e/geothermal-projects-in-east-africa---full-steam-ahead ; https://www.standardmedia.co.ke/business/article/2000142886/generation-of-105mw-of-power-in-the-offing-as-gdc-hands-over-sites#google_vignette https://www.afrik21.africa/en/sosian-finally-finds-a-lender-for-its-35-mwe-geothermal-power-plant-in-nakuru/ ; https://www.sustainabilitymea.com/sosian-secures-funding-for-35-mw-geothermal-power-plant-in-nakuru/ ; https://www.afdb.org/sites/default/files/documents/environmental-and-social-assessments/sosian_menengai_geothermal_project-_esia_executive_summary.pdf ; https://www.nortonrosefulbright.com/en/knowledge/publications/ed7d5a3e/geothermal-projects-in-east-africa---full-steam-ahead ; https://www.standardmedia.co.ke/business/article/2000142886/generation-of-105mw-of-power-in-the-offing-as-gdc-hands-over-sites#google_vignette