The African Development Bank has approved a transformative $16.5 million loan to accelerate Kenya’s clean energy transition.
This funding will drive the construction of the 35 MW OrPower Twenty-Two (OTTL) Geothermal Power Plant in the Menengai geothermal field—a flagship renewable energy project set to deliver reliable, affordable, zero-emission baseload power straight into the national grid.
Nestled in Kenya’s dramatic Rift Valley, north of Nakuru Town and about 180 km northwest of Nairobi, the Menengai geothermal field taps into one of the continent’s most promising sources of clean, sustainable energy. By harnessing the Earth’s natural heat deep underground, this project helps break Kenya’s dependence on expensive and polluting diesel generators.
The OrPower Twenty-Two plant will be the third 35 MW facility in the Menengai field, complementing the already operational Sosian Menengai Geothermal plant and the under-construction Globeleq Menengai project (also supported by African Development Bank financing). Together, these three plants will unlock the full 105 MW potential of the field’s first development phase.
The development model is both elegant and powerful: Kenya’s government-owned Geothermal Development Company (GDC) handles exploration, drilling, and steam production, supplying high-quality steam to private Independent Power Producers (IPPs) like OTTL. OTTL then constructs and operates the power plant with maximum efficiency. Kenya Power and Lighting Company purchases all the electricity generated under a secure 25-year Power Purchase Agreement.
This public-private partnership delivers clear mutual benefits. As Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department, stated: “The Menengai model demonstrates the power of public-private collaboration, where government-led resource development unlocks private investment in geothermal generation, delivering mutual benefits.” GDC secures stable revenue from steam sales to repay investments and fund further geothermal expansion across the country, while private players bring advanced technology and operational excellence.
OTTL’s Director, Qi Jingwen, highlighted the project’s deeper purpose: “We are honoured to be constructing the Orpower Menengai Geothermal Power Plant using independently developed, fully proprietary next-generation geothermal power technology thereby fulfilling our corporate mission of ‘contributing to saving the planet’.”
Once operational—targeted for early 2026—the plant will generate approximately 301 Gigawatt-hours of clean, reliable energy each year. As baseload power, it provides constant supply regardless of weather conditions or fuel price fluctuations. It will also deliver one of the lowest electricity tariffs in Kenya, helping reduce overall power costs for households, businesses, and industries.
The environmental gains are substantial: over the 25-year Power Purchase Agreement period, the project is expected to avoid roughly 1.9 million tonnes of greenhouse gas emissions—equivalent to taking hundreds of thousands of cars off the road for decades.
This initiative directly supports Kenya’s ambitious Mission 300 Energy Compact and the national target to increase geothermal capacity from the current 940 MW to 1,824 MW by 2030, advancing the country’s goal of achieving 100% clean energy through private-sector-led investment.
The Bank’s $16.5 million loan complements additional financing, including support from the International Finance Corporation, bringing total project debt to $64.4 million against an estimated total cost of $91.9 million.
Menengai is more than just another power plant—it is a scalable blueprint for Africa’s renewable energy future. Geothermal offers vast, domestic, weather-independent resources along the Rift Valley, insulated from global fuel market volatility. Kenya continues to lead East Africa in geothermal development, and projects like OrPower Twenty-Two show how international financing, forward-thinking policy, and private-sector innovation can dramatically speed up the clean energy transition.
As 2026 unfolds, Menengai stands ready to deliver more than megawatts. When OrPower Twenty-Two comes online, it will bring energy security, lower electricity bills, cleaner air, and a brighter, greener future for millions of Kenyans.
The heat beneath our feet is waiting. Thanks to visionary partnerships and strategic funding, Kenya is finally unleashing its full geothermal potential.
Source: afdb
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