News update: 8 Apr 2013

Longonot Geothermal Project
Kenya Power & AGIL sign a 140 MW Power Purchase Agreement

The Kenya Power and Lighting Company Limited (Kenya Power) and Africa Geothermal International Kenya Limited (AGIL) have signed a Power Purchase Agreement (PPA) for development of a 140 MW Longonot Geothermal Project.

Under the PPA, AGIL will develop, construct, own, operate and maintain the geothermal project with Kenya Power purchasing the power generated. 

The PPA has a term of 25 years after the power plant commercial operation date, scheduled for 2018. Project development and construction activities will be carried out in the interim period.

Kenya Power Managing Director & Chief Executive Officer, Eng. Joseph Njoroge, said the PPA is an important step forward in enabling the country meet its Vision 2030 utilizing geothermal power that is cost effective and environmentally friendly.

Eng. Njoroge said geothermal power is part of the country’s strategy of  diversifying the generation sources mix for security of supply and reducing the overall cost of electricity because it does not have fuel cost.

“Geothermal, unlike other renewable energy sources such as wind, solar or hydroelectric, is firm not dependent upon weather.  Geothermal power plants in Kenya and around the world operate at high capacity factors and provide needed base load generation, ” he added.

Mr Fassine Fofana, Chief Executive Officer of AGIL, also said the project is a significant milestone for the geothermal industry in Kenya and all of East Africa as it brings into the geothermal sector private investment for a major greenfield project. 

”This 140 MW PPA provides the AGIL stakeholders the offtake certainty needed to advance the project and provides Kenya Power an important addition to their generation plan,” said Mr Fofana.

The Longonot Geothermal Project is directly adjacent to the Olkaria geothermal complex.  AGIL has performed all of the surface exploration and development activities to ready the project for drilling expected to commence in early 2014.


For more information, contact:

Corporate Communications Department
The Kenya Power & Lighting Company Limited
Tel. 3201622/30 or/47

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