Sosian Energy, Kenya’s independent power producer (IPP), signed a US$ 65 million deal with Chinese company Kaishan Renewable Energy Development, whose parent company is Zhejiang Kaishan Compressor, to build the Menengai III geothermal power plant in the Rift Valley in western Kenya.
The project has all the required permits for the construction and operation of the plant and is also authorized to sell the electricity to Kenya National Power.
Under the agreement the Chinese company is in charge of drilling geothermal wells and installing pipes to transport steam to run the turbines of the geothermal power plant. Zhejiang Kaishan also won a US$ 18 m contract to operate and maintain the future geothermal power plant of Menengai III for a period of 14 years.
The geothermal plant is expected to produce 34 MW of power after completion. The plant’s owner, Sosian Energy, is one of three PPIs selected for the Menengai geothermal project development. The other PPIs chosen by the Geothermal Development Company (GDC) public company are: Orpower Twenty Two and Quantum Power East Africa.
The three geothermal power plants under development will generate a total of 105 MW. This energy will be sold to Kenya Power, the electricity utility company.
In addition, the Quantum Power East Africa will receive a US$ 29.5 million loan from AfDB for power plant development while The Climate Investment Fund (CIF) (part of the Clean Technology Fund (CTF) has also committed US $20m towards the project.