One of Kenya’s most important energy projects that had stalled owing to a lack of finances is back on track after a consortium of financial institutions provided $870-million for its implementation.
The Lake Turkana wind power (LTWP) project, which had remained in limbo for eight years, is to be financed by entities led by the African Development Bank (AfDB).
The project, with a capacity to generate 300 MW, is critical to Kenya’s ambitions to meet its energy demands to fuel the East African nation’s growing economy.
The project is among projects expected to assist Kenya in attaining its Vision 2030 master plan, which seeks to transform Kenya into a middle- level economy. It is the first of its kind in East Africa and will be the largest wind project in Africa.
“The signing of the financing agreements represents a major breakthrough to completing the biggest clean power energy project in Africa, spanning years of negotiations and fundraising,” says LTWP chairperson Carlo van Wageningen.
LTWP, an independent power producer, has already signed a 20-year power purchase agreement with State-owned Kenya Power.
Other financiers of the project are the European Investment Bank, South Africa’s Standard Bank and Nedbank, FMO, Proparco, East African Development Bank, PTA Bank, EKF, Triodos and DEG. The government of the Netherlands has also provided a grant of $13.8-million and the European Union (EU) a subsidised facility amounting to $13.5-million through the EU-Africa Infrastructure Trust Fund.
The project will comprise 365 wind turbines (each with a capacity of 850 kW), the associated overhead electric grid collection system and a high-voltage substation. Completion of the project is slated for 2016.
The Kenya government has already awarded Spanish engineering company Isolux Corsan the contract to construct a 400 kV power line to evacuate power from the project.
The line will cover a distance of 428 km and will be built at a cost of $208-million. The project also involves the construction of four substations along the power line.