Sosian finally finds a lender for its 35 MWe geothermal power plant in Nakuru
Sosian Energy, one of the companies chosen to build power plants in the Menengai geothermal field, has finally found a financial partner for its project. The partner is the Development Bank of Southern Africa (DBSA).
Sosian has completed the financing of its power plant in the Menengai geothermal field in Nakuru County, Kenya. The sole lender for the project is the Development Bank of Southern Africa (DBSA), which is providing $68 million. Sosian connected its 35 MWe geothermal power plant to Kenya’s electricity grid in August 2023.
The Nairobi-based company is buying the steam needed to run its plant from the Kenyan state-owned Geothermal Development Company (GDC), which has already drilled several geothermal wells on the project site. Under the existing agreement between the two parties, Sosian Energy will pay 1.7 billion Kenyan shillings ($14.5 million) per year for the next 25 years to GDC through Sosian Menengai Geothermal Power. The special purpose company will sell the electricity generated by the Menengai III plant to the state-owned Kenya Power.
According to DBSA, Sosian’s geothermal project promises to have a significant impact in Kenya. “With a production cost of $0.08/kWh, the plant will be one of the most profitable sources of energy in Kenya. Thanks to the use of renewable energy, the plant will operate without emissions, which will contribute to achieving global climate objectives”, says the development bank based in Midrand, South Africa.
The Menengai geothermal field, whose potential is estimated at between 70 and 140 MWe, will enable Kenya to further diversify its electricity mix. The East African country already has one of the most diversified electricity mixes on the continent, with 86% of its electricity generated from renewable sources, including wind, solar, geothermal, hydro and biomass.
