Globeleq acquires stake in Quantum Power, relaunches Menengai II geothermal project

KENYA – British company Globeleq, with financial support from CDC Group has partially acquired Quantum Power East Africa GT Menengai (QPEA), one of the three Independent Power Producers (IPPs) developing the 105 MW Menengai geothermal project in Kenya.

The investment is good news for Quantum Power, which has received the release from the Kenyan government since 2013 to supply 35 MW from the Menengai II geothermal power plant.

The project has been at a standstill due to difficulties in raising funds.

The Menengai geothermal project which is expected to produce 105 MW is being developed simultaneously in several phases by three independent power producers (IPPs).

The Independent Power Producers will purchase steam for the geothermal plants from the Kenyan state-owned Geothermal Development Company (GDC), which already has wells at the project site in Nakuru County in the west of the country.

In addition to Quantum Power East Africa, the Menengai I geothermal project is being developed by Orpower Twenty-Tw while the Menengai III geothermal power plant is being built by Sosian Energy.

These Independent Power Producers  will sell their output to Kenya Power (KPLC) under a Power Purchase Agreement (PPA).

Kenya has a high geothermal resource potential of around 10,000 MW along the Rift Valley with current installed geothermal capacity of 745 MW”

Currently, the most advanced project to date is Menengai III and its developer Sosian Energy has chosen the Chinese company Kaishan Renewable Energy Development, a subsidiary of Zhejiang Kaishan Compressor, to build its geothermal power plant.

Quantum Power East Africa GT Menengai should follow suit with Globeleq’s investment.

Kenya has a high geothermal resource potential of around 10,000 MW along the Kenyan Rift Valley with current installed geothermal capacity of 745 MW, with most of it in the Olkaria fields.

Exploration for geothermal resources in Kenya started in 1950’s and gained momentum in the 1960’s, when two wells were drilled at Olkaria.

From 1967, the United Nations Development Programme (UNDP) in collaboration with the Kenya Government and the then East African Power and Lighting Company Ltd., conducted geological and geophysical surveys in the area between Lake Bogoria and Olkaria and studies identified Olkaria as the most prospective area leading to the construction of the first geothermal power station between 1981 and 1984.

Kenya is currently the largest geothermal energy producer in Africa, with its power production contributing to over 40% of the country’s electricity generation.

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