Quantum Power East Africa GT Menengai Ltd has received funding from the Climate Investment Funds (CIF) and the Clean Technology Fund (CTF) after the African Development Bank (AfDB) approved a senior loan of $29.5 million and a concessional loan of $20 million.
The funds will finance the construction of a 35MW geothermal power plant at the Menengai geothermal field in Nakuru. The plant will become one of the three modular plants on the field with a joint capacity of 105MW.
The project is part of CTF’s “Geothermal Concessional Finance Program under the Dedicated Private Sector Program” which aims to financially support initiatives that contribute to development and can be implemented fast and efficiently.
Amadou Hott, Vice-President, Power, Energy, Climate and Green Growth at the African Development Bank said: “Kenya has nearly 7,000 MW of geothermal potential, yet only about 200 MW is currently being developed. […] The partnership between the African Development Bank and the CIF to contribute to Kenya’s efforts in scaling up the development of this renewable resource and boost economic growth is commendable. The deployment of CTF funds is directly contributing to unlocking the power of the private sector in driving long-lasting market transformation and mitigating risks in the geothermal power sector.”
The Pro-Environment Menengai Geothermal Project
The Quantum Power-Menengai Geothermal Project is the second independent geothermal project in the country. The project will boost public-private partnerships and help the country to exploit geothermal to offer low-cost, reliable, and environmentally friendly electricity.
The project also promotes the government’s Big Four agenda and supports AfDB’s commitment to ‘Light up and power Africa’ and ‘Industrialize Africa.’
Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank said: “The African Development Bank has invested considerable resources and time in the development of the Menengai geothermal steam field with the objective of enabling Kenya to find a productive source of steam for on-grid power generation. The financial package being extended to this project shows strong commitment towards improving Kenya’s energy sector as well as tangible efforts to curb climate change and encourage green growth on the continent.”
In addition, the project will play a part in green growth through developing renewable energy infrastructure and increase base-load. The project has the potential to supply power to 48,800 households each year at a low production cost of seven cents per kWh.