Ormat secures 25-year PPA for 35-MW geothermal project in Kenya

Nov 3, 2014 - US firm Ormat Technologies Inc (NYSE:ORA) said today it had signed a 25-year power purchase agreement (PPA) plus a steam supply deal for a 35-MW geothermal project in Kenya.

The geothermal power company will build the Menengai plant in partnership with US-based power infrastructure installer Symbion Power LLC and local engineering and construction firm Civicon Ltd. Ormat owns 51% in the project company, while Symbion and Civicon each hold 24.5% stakes in it.

The jointly-owned firm will finance, design, construct, install, operate and maintain the facility on a build-own-operate (BOO) basis for a period of 25 years. During that time, it will sell the plant’s output to Kenya Power and Lighting Co Ltd (KPLC).

State-owned Geothermal Development Company (GDC) has agreed to develop and maintain the geothermal resource in addition to supplying the steam needed for conversion to electricity.

The project company will begin construction once the scheme reaches financial close. The development is expected to benefit from a Partial Risk Guarantee (PRG) by the African Development Bank.

“This will be our fifth plant in Kenya and once it is operational, we will supply 145 MW to the Kenyan grid,” said Isaac Angel, Ormat’s CEO.

To date, Ormat Technologies has engineered, manufactured and built geothermal and recovered energy generation (REG) plants with a combined capacity of over 1,800 MW gross. Its current portfolio includes power stations totalling 626 MW net, located in the US, Guatemala and Kenya.

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