The African Development Bank (AfDB) Board of Directors approved a $16.5 million loan in November to support the development of the 35 MW OrPower Twenty-Two (OTTL) Geothermal Power Plant, a key renewable energy project in Kenya. The plant aims to increase the country’s baseload generation capacity and accelerate its transition to clean energy.
The OTTL project is being developed by an Independent Power Producer in the Menengai geothermal field, located north of Nakuru Town, approximately 180 km northwest of Nairobi. It represents the third power plant in the field, complementing the operational 35 MW Sosian Menengai Geothermal plant and the 35 MW Globeleq Menengai Geothermal project, which is still under construction with separate AfDB financing. Together, these plants are expected to unlock the full 105 MW potential of the first phase of the Menengai geothermal field.
The field was originally developed with a $145 million AfDB loan to the Geothermal Development Company (GDC), a government-owned entity responsible for drilling and supplying high-quality steam to the new plant. Kenya Power and Lighting Company, also state-owned, will act as the sole off-taker under a 25-year Power Purchase Agreement.
The project is set to deliver affordable, sustainable baseload electricity at one of the lowest tariffs in Kenya, helping reduce overall energy costs. Once operational, it will generate roughly 301 Gigawatt hours of clean energy annually, enhancing supply reliability, diversifying the energy mix, and reducing dependence on diesel-powered generation. The plant is also expected to avoid 1.9 million tonnes of greenhouse gas emissions over the 25-year PPA period.
Wale Shonibare, Director of AfDB’s Energy Financial Solutions, Policy, and Regulations Department, highlighted the Menengai model as a successful example of public-private collaboration. The model allows GDC to monetize its investment through stable steam sales while private companies efficiently generate power. OTTL Director Qi Jingwen emphasized that the project uses fully proprietary next-generation geothermal technology and benefits from international financial support to expand green energy development in Africa.
The project aligns with AfDB’s energy priorities and Kenya’s broader development goals, directly supporting Pillar I of the country’s Mission 300 Energy Compact. By contributing to Kenya’s target of increasing geothermal capacity from 940 MW to 1,824 MW by 2030, it also promotes the country’s transition toward 100% clean energy through private sector investment. The AfDB’s financing will be complemented by additional funding from the International Finance Corporation (IFC), bringing the total project debt to $64.4 million out of an estimated $91.9 million project cost.
