Ormat Technology and Kenya Power & Lighting Company (KPLC) have signed a letter of intent, which prepares the conditions for Ormat to eventually increase the capacity of the Olkaria III geothermal power plant by up to 52 MW. The increase could potentially increase the total output capacity of the plant to 100 MW.

Olkaria III geothermal power plant in Kenya.

The expansion is to be done in two phases, the first one with 36 MW being added withing 3.5 years, and the optional second phase with up to 16 MW withing 4.5 years from the start of commercial operation of the first phase. All these plans and the power purchase agreement for the second phase are subject to approval by the government and consent by lenders who will provide financing for the project.

Olkaria III is located in Naivasha, Kenya, and is currently capable of generating 48 MW of power. The first phase of the existing plant began commercial operation in 2000, while the second phase of about 35 Mw, began operation in January 2009.

[source: Ormat Technologies]