Ormat Technologies has achieved commercial operation of plant four at the Olkaria III complex in Kenya, increasing generating capacity by 29MW to 139MW.
Plant four will sell electricity to Kenya Power and Lighting Company under a 20-year power purchase agreement.
Ormat has implemented a multi-phased development strategy in Olkaria III. The first phase of Plant one commenced operation in 2000 and the second phase in 2009. Plant two commenced commercial operation in 2013 and plant three in 2014.
The company financed the first three plants with a $310m debt facility provided by the US Overseas Private Investment Corporation.
Plant 4 was financed by Ormat equity, which is covered under insurance policy from MIGA – a member of the World Bank Group – to cover its exposure to certain political risks involved in operating in developing countries.
Ormat chief executive officer Isaac Angel said: “Now that we have the commercial terms in place, we will continue to evaluate the feasibility of future expansions of the Olkaria III complex as well as other prospects to support our growth in Kenya.”
Image: an Ormat geothermal facility in Nevada (Ormat)
