British power producer Globoleq received a green light to acquire a controlling stake in Quantum Power East Africa GT Menengai (QPEA), a company contracted to build a 35MW geothermal plant in Menengai.
In a gazette notice, the Competition Authority of Kenya (CAK) Director-General Wang’ombe Kariuki authorized the acquisition, expected to kick off construction of one of the three geothermal power projects with a total capacity of 105MW.
“…it is notified for general information that in the exercise of the powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorized the proposed transaction as set out herein,” reads the CAK notice.
UK’s CDC owns 70% of Globoleq while Norwegian Investment Fund Norfund owns the remaining 30%.
QPEA is one of the Private Independent Power Producer (IPP) developing the Geothermal power project in Menengai, under a steam supply contract by the Geothermal Development Company (GDC). However, the construction project has faced delays due to factors like the achievable power purchase contacts in Kenya power and the set stream supply price by GDC. The IPP projects were slated to begin operations in December 2016.
According to Media reports, QPEA said it would build a Ksh 10.76 billion million plant. The company has a 25 year Power Purchasing Agreement with Kenya Power. In the agreement, Kenya Power will pay Ksh 5.50 per kilowatt-hour and an additional 2.20 per kilowatt-hour to GDC for steam.
Globoleq is currently building a 52MW solar plant in Malindi, and owns a minority shareholding in Tasavo Kipevu II 75 MW heavy fuel power plant.