Kenya Power signs 100MW power purchase agreement for wind energy

03 Jun 2016, 12:00 am
Financial Nigeria

Summary

Under the agreement, Kipeto’s 100MW wind farm will sell clean, renewable energy at stable costs to Kenya Power.

Wind turbines

Kenya Power, a national power utility company, has signed a 20-year Power Purchase Agreement with Kipeto Energy, which is developing Kenya’s second largest wind farm project.

Under the agreement, Kipeto’s 100MW wind farm will sell clean, renewable energy to Kenya Power at stable costs in a market where demand for electricity is rising at 7 percent annually.

Kipeto Energy is a special purpose vehicle incorporated in Kenya for the development of the Kipeto Wind Power Project. The project is part of President Barack Obama’s ‘Power Africa’ initiative, which aims to add 30,000 megawatts of renewable power capacity in Sub Saharan Africa.  

Kipeto is being developed jointly by the International Finance Corporation’s InfraVentures, African Infrastructure Investment Managers and Craftskills Wind Energy International. The Overseas Private Investment Corporation, the US government’s development finance institution, is the principal lender to the project. General Electric will supply 60 wind turbines and will service the plant over a 15-year period.

“Reliable, affordable energy is vital to creating jobs and supporting economic growth in Kenya,” said Oumar Seydi, IFC’s Director for Eastern and Southern Africa. “IFC supports pioneering companies like Kipeto that are investing in renewable energy in Kenya while benefiting the local community.”

Aside from financing, the IFC is also advising Kipeto’s management on best practices related to land, community, and the environment. Kipeto has established a community development trust, through which 5 percent of the wind farm’s dividends will be invested in health, education, and other social projects to benefit Kajiado residents, the county, 70 kilometers southwest of Nairobi where the wind farm is located. 


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