Ormat Technologies has successfully completed construction and reached commercial operation of Plant 3 in the Olkaria III geothermal power plant complex located in Naivasha, Kenya. With Plant 3 online, the complex’s total generation capacity has increased to 110 MW. The power generated by the Olkaria III is sold under a 20-year power purchase agreement (PPA) with Kenya Power and Lighting Company Limited (KPLC).
The Olkaria III complex was financed with a $310 million debt facility provided by the Overseas Private Investment Corporation (OPIC). In November 2013, Ormat drew down the remaining $45 million available under the project finance debt facility for the completion of Plant 3.
“Olkaria III is a prime example of our multi-stage approach to project development generating higher investment returns and reducing risk,” said Dita Bronicki, chief executive officer of Ormat. “In less than one year, we’ve completed construction of two additional plants and, over the course of five years, more than doubled the facility’s generating capacity.”
Bronicki added, “Due to our operational expertise and innovative technology, we’ve accomplished that growth ahead of schedule resulting in a significant increase in revenues. As we complete this project, we remain committed to support the growing power needs of Kenya with this indigenous, reliable and environmentally friendly source of electricity. Kenya is an important market for our future growth due to its high geothermal potential and we are focusing our efforts on increasing our operation in Kenya.”