Energy

The Menengai Geothermal Project will be developed in five phases with the goal of developing 465MW of geothermal steam equivalent. (Image source: GDC)

The Geothermal Development Company, a government-owned company that is mandated to execute surface geothermal development, has announced the groundbreaking of the third geothermal power plant at the Menengai Geothermal Project

Set to take place on 24 October and presided over by Kenyan President William Ruto, the groundbreaking has been described as an important step in the country’s transition to clean and reliable energy. Further, it underscores Kenya’s commitment to sustainable energy generation and enhancing the country’s energy mix.

The groundbreaking of the 35MW power plant by OrPower 22, the third independent power producer (IPP) at the site in the eastern sector of the Menengai Caldera, is the next step in the delivery of the wider project that has a long-term goal of developing 465MW of geothermal steam equivalent.

Phase 1 of the Menengai projects targets to generate 105MW and will be met through the three IPPs on site. The first, Sosian, started to generate 35MW in late 2023 while Globeleq is currently the second power plant which will also generate 35MW.

According to the Geothermal Development Company, the delivery of the third power plant promises wide-ranging benefits, such as lower electricity costs (power from the Menengai Geothermal Project is the most competitively priced at 7 $cts/ kWh). Moreover, there will be job opportunities unlocked as it progresses, while boosting economic growth.

The KOSAP programme is part of Kenya Vision 2030, the long-term development blueprint for the country. (Image source: d.light)

d.light, a provider of transformational household products and affordable finance, has been selected to take part in the Kenyan Government’s initiative to expand the uptake of off-grid solar home systems and clean cookstoves in underserved counties

The Kenya Off-Grid Solar Access Project (KOSAP) is a flagship project of the Ministry of Energy, financed by the World Bank, that aims to provide electricity and clean cooking solutions in the remote, low-density underserved areas of the country. It is part of the Government’s goal of providing universal electricity in Kenya, helping to pave the way for the realisation of Kenya Vision 2030.

According to World Bank 2022 data, 24% of Kenyans still lack access to electricity and more than 34% of the country’s rural population without access. Moreover, only 30% of the population have access to clean fuels and technologies for cooking, with the remainder at risk from using harmful fuels such as unprocessed biomass, charcoal, coal and kerosene.

d.light’s managing director for Kenya, Karanja Njoroge, remarked, “Kenya has achieved sustained economic growth and social development in the last decade or so, and its economy is the largest and most developed in eastern and central Africa. However, many of its citizens still live without access to electricity, especially in rural areas outside the major towns and cities. These areas are also vulnerable to the effects of climate change, including droughts and desertification.”

Supporting rural Kenya

THE KOSAP programme, launched in 2018, is targeted at rectifying these deficiencies and consists of four components with a total budget of US$150mn (provided as a grant from the World Bank). The four components are focused on mini grids for community facilities, businesses and households; standalone solar home systems and clean cooking solutions for households; standalone systems solar home systems and clean cooking solutions for households; standalone systems and solar water pumps for community facilities; and capacity building for development, planning and regulation of power and renewable energy at a county government level.

d.light has been selected to participate in the second component which has been allocated US$15.7mn. d.light will provide solar power and clean cooking solutions to more than 150,000 people, with its solar products sold on an instalment plan via the company’s ‘PayGo’ service.

“Kenya was one of the first African countries in which d.light launched operations back in 2008, and our headquarters for Africa is in Nairobi,” continued Njoroge. “With our combination of tried-and-tested, market-leading products, established distribution channels, and our secure ‘PayGo’ payment system, d.light is ideally placed to participate in this latest drive to extend clean, safe, renewable energy to the people and communities in rural Kenya who need it. Thanks to the KOSAP initiative, a better quality of life is within reach for many Kenyans.”

In July, d.light announced that it had closed a securitisation facility to scale up its PayGo consumer finance in select African countries. Click here to discover the full story. 

Scatec will seek to replicate the success it has had in previous hybrid solar and battery storage projects at Kenhardt. (Image source: Adobe Stock)

Scatec ASA, a renewable energy provider, has reached financial close for the Mogobe battery energy storage system (BESS) facility in Northern Cape, South Africa

The 15-year power purchase agreement was awarded to Mogobe BESS under the first window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) which will see Scatec receive payments for making the storage capacity available for the National Transmission Company of South Africa (NTCSA).

“We are showing and supporting that dispatchable energy and grid infrastructure are cornerstones to the sustainability of South Africa’s current and future energy system,” said Roar Haugland, EVP sub-Saharan Africa, Scatec. “By unlocking more grid capacity, we are enabling further electricity access, as well as enabling more renewable energy grid connections in years to come.”

A milestone for South Africa

With a total capex for the 103MW / 412MWh project at US$170mn, Scatec’s EPC contract account for approximately 83%. The project, which will see NTCSA utilise the capacity to balance the grid, will be financed by US$154mn of non-recourse project debt with Standard Bank of South Africa acting as mandated lead arranger, and the remaining equity from the owners.

“This marks a new milestone for Scatec in South Africa and for the renewable energy transition in the country,” commented Scatec CEO Terje Pilskog. “The Mogobe BESS project is a first of a kind and reaffirms our standing as a leading renewable energy player in South Africa. We continue to see attractive growth opportunities in the market based on the need for growth in power generation, our strong position in the country and our strong and competent local team.”

“Standard Bank is proud to continue our long-standing partnership with Scatec as the lead arranger for the groundbreaking Mogobe BESS project. This facility represents a significant step forward in South Africa’s energy transition, building on our successful collaboration on projects like Kenhardt. We’re committed to financing innovative energy solutions that drive sustainable development and economic growth in South Africa and across the continent,” added Rentia van Tonder, head: power – corporate and investment banking, Standard Bank of South Africa.

This step towards a sustainable future for South Africa is a timely announcement given the recent warning from IRENA that the world is set to miss a key climate target without immediate change. Click here to discover the full story.

The HGY Series are designed to work seamlessly with micro-grids and renewable energy sources. (Image source: HIMOINSA)

HIMOINSA, a leader in power technology solutions, has launched the HGY Series, a new engine line with a capacity from 1,250kVA to 3,500kVA

According to the company, which is part of the Yanmar Group, it has future plans to reach 4,000kVA with the range which is engineered to deliver robust and sustainable solutions, particularly in areas with unstable national grids. The range, it claims, has the potential to significantly help address Africa’s growing energy needs, particularly in key sectors critical to the continent’s economic development such as healthcare, mining, oil and gas, and data centres.

Guillermo Elum, HIMOINSA's EMEA region head, remarked, “Africa is a key growth region for HIMOINSA, and our approach goes beyond merely selling products; we are committed to building local capacity. Our training programmes in Angola, South Africa, Morocco, Togo and soon, in Tanzania, ensure that African technicians and engineers are fully equipped to manage and maintain our technology, creating skilled jobs and developing expertise across the continent.”

A high-capacity solution

With the release of the HGY Series, HIMOINSA has entered the high-capacity engine segment as it bids to support the continent’s rapid industrialisation and infrastructure expansion. By offering flexible fuel options, currently capable of operating with a range of diesel types and HVO (hydrotreated vegetable oil), with future plans to support natural gas and hydrogen, the HGY Series ensures that businesses and communities across Africa have access to low-emission, efficient, and reliable power, regardless of local grid conditions.

Francisco Gracia, CEO of HIMOINSA, surmised, “We see enormous potential in Africa’s industrial and digital sectors, and the HGY Series is a powerful tool for realising that potential. From supporting vital healthcare facilities to powering new data centres that drive digital transformation; to providing continuous power for mining projects, our solutions are designed to make a tangible impact in Africa’s growth story. This launch is more than just a product introduction; it is our commitment to being a partner in Africa’s progress.”