Menengai’s Broken Promise: How Kenya’s Geothermal Model Lost the Steam Thematic image of the Olkaria Geothermal Field Kenya’s Menengai geothermal project was sold as a model of modern public-private partnership. The state would carry the difficult and expensive burden of geothermal exploration and drilling. Private power producers would then build, own and operate power plants. Geothermal Development Company would supply the steam; the independent power producers would convert it into electricity; Kenya Power would buy the output. On paper, the arrangement was elegant. In practice, Menengai has exposed a far more uncomfortable reality: Kenya’s public steam-supply model is not delivering the certainty it promised. Menengai Phase I was designed to produce 105 megawatts from three 35 MW plants. GDC’s own project page says the three plants were awarded to Globeleq Menengai Geothermal, Sosian Menengai Geothermal Power and OrPower Twenty Two under a build-own-operate structure. Yet the ...
US Geothermal Tax Credits in 2026: What Is Actually Still Alive After OBBBA For an industry that spent more than a decade building financial models around a stable federal incentive structure, 2026 has been a year of whiplash. The 30% federal geothermal tax credit that developers and homeowners built forecasts around is gone in one form and still alive in another, and even the IRS’s own public guidance has been confusing enough to trigger uncertainty across the market. That confusion is not a minor clerical issue. It is shaping investment decisions, contractor sales pitches, homeowner timelines, and project finance assumptions right now. If you work in geothermal, the key question is no longer whether federal incentives exist, but which incentive applies, to which project type, and under what ownership structure. The law that changed the timeline To understand where things stand in 2026, you have to start with the Inflation Reduction Act of 2022, which created a long runway for clean e...