Climate Investment Funds (CTF) with support from African Development Bank has approved a concessional loan of KES299 billion to co-finance up to two geothermal projects in Rift Valley. The credit facility will build on the energy advancements already taking place at the Menengai Geothermal Field.The field is set to generate 130MW of power.

 

Climate Investment Funds (CTF) with support from African Development Bank has approved a concessional loan of KES299 billion to co-finance up to two geothermal projects in Rift Valley. The credit facility will build on the energy advancements already taking place at the Menengai Geothermal Field.The field is set to generate 130MW of power.

The CTF funds will enhance the projects’ financial viability and commercial bankability by shoring up conventional financing and breaking down barriers to private investment. The program will support up to two private-sector led geothermal generation projects structured as Independent Power Producers (IPPs).

A statement issued by AfDB Coordinator for CTF, Joao Duarte Cunha stated, “This infusion of capital will thus serve to build investor confidence and improve bankability of these vital resources. Furthermore, the success of the IPPs developed in this program can serve as a beacon for other countries looking to achieve similar green energy goals.”

Presently, geothermal accounts for 29 per cent of Kenya’s energy mix. In 2015, KenGen commissioned 280MW geothermal power plant at the Olkaria geothermal power source. The electricity generator plans to increase geothermal capacity to 560MW to the national grid by 2019.Kenya is ranked the eighth largest producer of geothermal energy in the world. By 2030, Kenya plans to have 5,530 MW of geothermal power. It is estimated that by 2020 the country’s projected installed energy capacity will triple from 2,177 MW to 6,766 MW.

The program is part of the CTF’s Dedicated Private Sector Program (DPSP), designed to finance programs that can deliver development results, impact, private sector leverage and investment at scale and can be deployed rapidly and efficiently

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