KENYA: LAKE TURKANA POWER NAMED AFRICA'S TOP RENEWABLE ENERGY DEAL

Lake Turkana Wind Power project has been nominated the “African Renewable Deal of the Year 2014” by Thomson Reuters Project Finance International.

A report on the wind power plant by the finance intelligence service firm says one of the project’s biggest achievements was to successfully secure the massive funding required.

“To mobilise nearly €625m (Sh70 billion) of monies (the largest ever private-sector financing in Kenya) is no mean feat. Add to that no less than 10 European and African development finance institutions providing debt and equity, two commercial banks, two hedging banks, five main contractors, three government counterparties and changing laws,” says the report.

The last round of funding was completed this month in a transaction led by African Development Bank after an eight-year process.

Standard Bank of South Africa and Nedbank were the co-arrangers for the project expected to produce 310 megawatts when completed in 2017.

The project is the largest wind plant in Africa and also broke the record for the single-largest sales order for wind turbines by a Copenhagen firm.
Vestas, a Danish firm, said the 365 turbines needed for the project is the biggest order in the firm’s 69-year history.

It is estimated the project will save the country €150 million (Sh17 billion) every year due to reduced importation of fuel used in thermal power plants.

Wind energy is proving to be a popular source for investors in green energy, based on the wind farms that are in the offing.

Other projects coming up include the 100-megawatt Kipeto wind farm in Kajiado County that has backing of the International Finance Corporation and that is estimated will cost $300 million (Sh27 billion).

Listed utility provider Kenya Electricity Generating Company (KenGen) has invested in wind power at its Ngong wind farm, which makes it the biggest producer of the moment.

The firm’s 25.5-megawatt wind farm is now up and running. KenGen said the project cost Sh4.5 billion.

Additionally the firm plans to put up a $270 million (Sh29.9 billion) 100-megawatt wind farm in Meru County.

Kinangop Wind Park under construction by Aeolus Kenya will add 60.8 megawatts to the national grid. Bluesea, a private company, also plans to add 40 megawatts in Meru County while TransCentury is developing a 50 megawatts wind farm in Limuru, Kiambu.

These plants are part of the government’s plan to add 5,000 megawatts to the national grid in the next three years.

Business Daily, Kenya