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Thursday, 28 November 2013

OrPower secures Sh3.9bn loan for Olkaria project in Kenya

US energy firm OrPower 4 has receivedan additional Sh3.89 billion loan for the completion of its 100 megawatt Olkaria III geothermal project in Naivasha, Kenya, boosting the country’s quest for sufficient supply.
The amount forms the final draw from a Sh26.06 billion loan from the Overseas Private Investment Corporation (OPIC), an agency of the US government, through Ormat Technologies, Orpower 4’s parent company.
“This drawdown will be used to complete the final phase of construction at the Olkaria III complex in Naivasha, bringing the geothermal power plant capacity to over 100MW,” Ormat CEO Dita Bronicki said.
In May, Ormat began commercial operations of its Plant Two within the Olkaria III complex, increasing the company’s total generating capacity by 36 MW to 611 MW worldwide. Ormat also plans to add 16MW of generation by building a third plant, which it expects to complete in 2014.
Once Plant Three is complete total capacity at the Olkaria III complex will reach 100MW. The power is sold under a 20-year power purchase agreement (PPA) with Kenya Power.
Kenya has embarked on a wide range of renewable power generation projects in a bid to reduce dependence on unreliable rain-fed hydroelectric and thermal power.