Africa-focused independent power producer (IPP) Globeleq has started construction of its 40 MW Malindi solar photovoltaic (PV) project in Malindi, Kenya.
The $69-million project, located about 120 km northeast of Mombasa, recently reached financial close.
Construction will be completed within about 12 months, with the plant expected to reach commercial operation in mid-2020.
The project is one of the first IPP-owned utility-scale power plants in Kenya to reach the construction phase.
Electricity from Malindi will be sold through the national distribution company, Kenya Power, for 20 years.
Globeleq has been working with the project originator Africa Energy Development Corporation, which will retain 10% ownership of the project.
Globeleq also partnered with IDEA Power, which will bring the project to construction by providing equity, project development and construction management experience.
UK-based development finance institution CDC, as the lead arranged, had sourced $52-million in debt financing to start the project, including $20-million from German development finance institution DEG.
The appointed engineering, procurement and construction contractor Sterling and Wilson Solar have started civil and electrical construction works.
Globeleq will oversee the construction and operation of the power plant.