Kenya Power and Lighting Company (KPLC) owes US geothermal firm Ormat Technology some KES4.31bn ($32.2mn) for electricity supplies, its regulatory filings show.

“In the electricity segment, we are exposed to the credit and financial condition of KPLC, which buys the power generated from our Olkaria III complex in Kenya. In 2023, KPLC accounted for 13.2 % of our total revenues” Ormat said, as quoted by Business Daily.

The US firm operates within the Naivasha-based Olkaria III complex through its wholly owned subsidiary OrPower 4, where it has an output capacity of 150 MW of geothermal power. It sells electricity to Nairobi-listed KPLC under a 20-year power purchase agreement (PPA) that ends by 2036.

KPLC reported a net loss of KES3.19bn for the full year ended June 2023 following a sharp rise in financing costs due to the weakening of the shilling. But in the six months ended December, it posted a KES319mn net profit on increased electricity sales and an upward review of tariffs, writes Business Daily.

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