The African Trade & Investment Development Insurance (ATIDI) has committed to support the 35 MW Globeleq Menengai Geothermal Project with liquidity cover via the Regional Liquidity Support Facility (RLSF). This collaboration underscores ATIDI’s dedication to fostering sustainable development and promoting renewable energy solutions across Kenya and the region.
RLSF, a joint initiative by ATIDI, KfW Development Bank, and Norad, offers credit enhancement to renewable energy Independent Power Producers (IPPs) selling electricity to state-owned utilities. This move aims to fast-track Kenya’s transition to renewable energy by providing the necessary financial backing for major projects.
Manuel Moses, ATIDI CEO, emphasized the importance of this partnership, highlighting ATIDI’s commitment to driving positive change and advancing Kenya’s energy transition. He expressed pride in working with Globeleq, KPLC, GDC, and the Government of Kenya on this transformative project, which follows the RLSF MoU signed in February 2024.
Globeleq Interim CEO, Jonathan Hoffman, lauded ATIDI for the landmark deal, committing to future collaborations. He noted the critical role of the RLSF in providing companies the confidence to invest in major renewable power projects like the Menengai geothermal project in Kenya.
The Menengai project, valued at USD 117 million, marks the first to receive RLSF cover in Kenya. It is financed by the African Development Bank (AfDB), TDB, Finnfund, and Globeleq. The RLSF policy will cover the risk of payment default by Kenya Power & Lighting Company (KPLC) and Geothermal Development Corporation (GDC), ensuring project viability.
Kenya, now the tenth ATIDI member state to sign the RLSF MoU, joins the initiative to leverage natural resources for clean, sustainable energy. With ambitious plans to boost electricity generation to 5,000 MW by 2030, Kenya’s power sector stands to benefit significantly from this strategic partnership, advancing its goal of 100% clean energy by 2030.
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