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Turkana wind project receives boost from EU

BUSINESS
By - jackson okoth | Nov 14th 2013 | 2 min read
By - jackson okoth | November 14th 2013
BUSINESS

By Jackson  Okoth

 

Construction work plans on the 300MW wind farm in Lake Turkana is now on course.

This follows a move by the European Union (EU) to inject Sh3.5 billion (Euros 25 million) to bridge a financing gap in the project.

EU Ambassador to Kenya, Lodewijk Briet, said the union is committed to helping Kenya grow its infrastructure in key areas that will unlock economic potential, improve living conditions and ensure tomorrow’s growth.

The entire Lake Turkana Wind Project is estimated to cost Sh70 billion (600 million), making it one of the largest private investment projects in Kenya.

It will involve a consortium comprising KP&P Africa B.V., Aldwych International, Industrial Development Corporation of South Africa (IDC), Industrial Fund for Developing Countries (IFU), and Norwegian Investment Fund for Developing Countries (Norfund). Aldwych, a power company focused on Africa, will oversee the construction and operations of the power plant on behalf of LTWP.  Vestas will provide the maintenance of the plant in contract with Lake Turkana Wind Project.

Kenya Power will buy the ENERGY produced at a fixed price over a 20-year period in accordance with the signed Power Purchase Agreement (PPA).

debt financing

The EU investment grant is being provided on top of more than Sh22 billion (Euros 200 m) in debt financing that has received board approval from the European Investment Bank (EIB).  Briet noted that generating a sustainable, green supply of energy for industry and households is key to Kenya’s continued successful development. Most of the capital investment for this project is coming from European countries.

The Lake Turkana Wind Project is considered the largest single wind farm in sub-Saharan Africa.

According to the National Wind Resource Atlas, as compiled by the Ministry of Energy, Marsabit West County is generally gifted with exceptional wind resources.

The site lies at the shoreS of Lake Turkana and 2,300m above sea level.


 

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