19 April 2013 – The Kenya Power and Lighting Company Limited has signed a Power Purchase Agreement (PPA) with Africa Geothermal International Kenya Limited (AGIL) which is establishing a 140 MW geothermal project in Longonot. The Longonot geothermal project is directly adjacent to the Olkaria geothermal complex.

Kenya Power MD Joseph Njoroge says, “geothermal power is part of the country’s strategy of diversifying the generation mix for security of supply and reducing the overall cost of electricity because it does not have fuel cost.”

Njoroge says that geothermal, unlike other renewable energy sources such as wind, solar or hydroelectric, is not dependable upon weather. Geothermal power plants in Kenya and around the world operate at high capacity factors and provide needed base load generation.

Under the power deal, 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’s commercial operation date, scheduled for 2018. Project development and construction activities will be carried out in the interim period.

CEO of AGIL, Fassine Fofana, says, “This 140 MW PPA provides the AGIL stakeholders the off-take certainty needed to advance the project.” AGIL has performed all of the surface exploration and development activities to ready the project for drilling expected to commence in early 2014.