The African Trade and Investment Development Insurance (ATIDI) will provide a US$ 117 million liquidity cover to Globeleq’s 35 MW Geothermal project in Menengai, which would offset payment defaults by the National utility, KPLC.
- The liquidity cover is part of ATIDI’s Regional Liquidity Support Facility (RLSF) that offers credit to Independent Power Producers (IPPs) that sell electricity derived from renewable sources to the National grid.
- The RSLF is a joint initiative of ATIDI, KfW development bank, and the Norwegian Agency for Development Cooperation (NORAD).
- The MoU between ATIDI and Globeleq was signed on the first day of the Africa Energy Forum in Barcelona, Spain.
“This partnership, coming so soon after the signing of the RLSF MoU in February 2024, underscores our commitment to fostering sustainable development and promoting renewable energy solutions across Kenya and the region,” said ATIDI CEO, Manuel Moses.
Kenya hosts ATIDI’s African headquarters after being the tenth country to sign an MoU with the firm. Other African countries that can receive the RSLF credit include: Benin, Burundi, Côte d’Ivoire, Ghana, Madagascar, Malawi, Togo, Uganda and Zambia.
“The Regional Liquidity Support Facility is a critically important product that gives companies the comfort around payment from customers that they need in order to invest in major renewable power projects in Africa such as our Menengai geothermal project in Kenya,” said Interim CEO of Globeleq, Jonathan Hoffman.
“This imaginative product from ATIDI, KfW and Norad provides critical liquidity support against payment default allowing companies like Globeleq to invest with confidence,” Hoffman added.
The RSLF is financed by different partners among them the African Development Bank (AfDB), Finnfund, and the Eastern and Southern African Development Bank (TDB).
The Geothermal Development Corporation (GDC) will provide Globeleq’s project with steam for 25 years, and the power generated will be exclusively sold to KPLC for a similar timeframe. The RSLF has been instrumental in generating 171 MW of electricity after providing more than US$ 320 million to its continental partners.
The Kenyan government plans to ramp up its geothermal power production to 5,000 MW by 2030. The current capacity sits at slightly more than 3,000 MW. Independent Power Producers in the sector will play a crucial role in achieving this goal.
“We are proud to collaborate with Globeleq, KPLC, GDC, and the Government of Kenya on this transformative project. Together, we are driving positive change and advancing Kenya’s energy transition. Given Globeleq’s huge and growing portfolio of renewable energy projects across the continent, we look forward to building on this partnership,” said Manuel Moses.
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