September 30 (SeeNews) - The Rural Electrification Authority (REA) has inked on Wednesday a 25-year off-take contract with Kenya Power for a 55-MW solar project in northern Kenya, an official said, as cited by Daily Nation.
Under the terms of the power purchase agreement (PPA), REA, which is developing the KES-13.7-billion (USD 135.4m/EUR 121.3m) project, will sell the generated electricity to the utility at KES 12.00 per kWh, according to the report.
The construction of the plant was supposed to begin in July, but the prolonged negotiations with Kenya Power delayed the start. Building works are now expected to be initiated “anytime soon”, REA chairman Simon Gicharu said, as quoted by the newspaper.
China Jiangxi has been contracted to build the facility in the northeastern town of Garissa. The plant will use 200,200 solar panels and will have the capacity to generate enough power to supply 625,000 households.
(KES 100 = USD 0.989/EUR 0.886)