• The African Development Bank approved a $16.5 million loan to finance a 35-MW geothermal plant in Kenya.
• The OrPower Twenty-Two project will sell electricity to Kenya Power under a 25-year power purchase agreement.
• The Menengai geothermal field will reach 105 MW of installed capacity in its first phase.

The African Development Bank approved a $16.5 million loan to Kenya to support the construction of a 35-megawatt geothermal power plant, the pan-African lender said on January 22.

The financing will support the OrPower Twenty-Two project, which an independent power producer is developing in the Menengai geothermal field in Nakuru county, in the country’s central-west region. Kenyan authorities identified the Menengai site as a priority zone for geothermal development.

The OrPower Twenty-Two plant will become the third 35-MW facility installed at the Menengai field. One plant of similar capacity already operates at the site, while a second project remains under development with separate financing.

Kenya Power and Lighting Company, the state-owned electricity distributor, will purchase power from the new facility under a 25-year power purchase agreement.

The plant will generate about 301 gigawatt-hours of electricity per year once fully operational. The three Menengai projects will lift installed capacity in the first development phase to 105 MW. Kenya’s state-owned Geothermal Development Company will supply steam to the power plants.

Renewed Global Interest in Geothermal Energy

The International Energy Agency describes geothermal power as a largely underexploited technology, accounting for less than 1% of the global energy mix, but reports growing interest worldwide.

In an analysis published in January 2025, the IEA linked renewed momentum in geothermal development to rising global electricity demand and recent technological advances, Agence Ecofin reported.

Progress in deep drilling techniques and enhanced geothermal systems now allows developers to exploit resources that were previously difficult to access. The agency said these advances expand the potential for geothermal projects across a wider range of geographic areas.

In its report The Future of Geothermal Energy, published in December 2024, the IEA said geothermal energy could account for up to 15% of global electricity demand growth by 2050 in some scenarios, assuming favorable economic and technological conditions.

This article was initially published by Abdel-Latif Boureima

Adapted in English by Ange J.A de BERRY QUENUM