Kipeto becomes the second-biggest wind power project in Kenya after the 300 MW wind farm being set up by Lake Turkana Wind Power in Marsabit.
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The World Bank is set to invest about Sh1.6 billion in a 100-megawatt wind power plant in Kajiado County.
The World Bank is set to invest about Sh1.6 billion in a 100-megawatt wind power plant in Kajiado County.
The global lender, through its private arm International Finance Corporation, said the ($20 million) funding towards the Kipeto wind power project would be in the form of equity.
IFC made the disclosure through a statement on its website.
“The proposed IFC investment includes an equity investment in KEL of approximately $20.5 million – including the funding of Kipeto Trust’s free carry – for IFC’s own account,” IFC, which has a 20 per cent stake in the project said in the statement.
The wind farm will be developed on a 70-kilometre square piece of land leased from local land owners in Kajiado County, approximately 70 kiometres south-west of Nairobi. Turbines will be supplied by American company General Electric.
According to IFC, the company will off-load power to the national grid under a electricity purchase agreement already entered into with Kenya Power.
“Power Kipeto will sell its power to the Kenyan off taker KPLC at a feed-in tariff of $12 cents/kWh under a 20-year PPA,” IFC said.
“Power Kipeto will sell its power to the Kenyan off taker KPLC at a feed-in tariff of $12 cents/kWh under a 20-year PPA,” IFC said.
The project will be implemented by Kipeto Energy Limited, a special purpose vehicle comprising different shareholders from across the world.
KEL was founded by Craftskills Wind Energy International Limited, a company owned by Kenyans Kenneth Namunje, Simon Guyo and Charles Munywoki.
African Infrastructure Investment Managers is KEl’s majority shareholder with a 55 per cent stake.
African Infrastructure Investment Managers is KEl’s majority shareholder with a 55 per cent stake.
The high cost of power in Kenya has frequently been cited as one of the reasons local goods are not competitive in the global market and a turn off to investors eyeing opportunities in the country.
Total project costs are estimated at $316 million. General Electric will construct a new on-site substation and a 66 kV line to transmit the generated electricity to the national power grid.
http://www.evwind.es/2014/10/21/world-bank-is-set-to-invest-in-a-100-mw-wind-farm-in-kenya/48213
worldwatch@nodo50.org
http://www.evwind.es/2014/10/21/world-bank-is-set-to-invest-in-a-100-mw-wind-farm-in-kenya/48213
worldwatch@nodo50.org