June 3 (SeeNews) - Kipeto Energy Limited, the developer of a 100 MW wind farm in Kenya, inked a 20-year power purchase agreement (PPA) with Kenya Power on Thursday.
Located in Oldonyo Narok in Kajiado county, some 50 kilometres south west from the capital Nairobi, the wind project will be the region’s second biggest after the 300 MW Lake Turkana wind project.
Kipeto Energy Limited was founded by Kenyan renewable energy developer Craftskills Wind Energy International Limited as a special purpose vehicle for the development of the 100 MW project. At present, Kipeto Energy is majority owned, with a 55% stake, by African Infrastructure Investment Fund 2, a fund managed and advised by African Infrastructure Investment Managers. Craftskills Wind Energy International has 20% interest, the International Finance Corporation (IFC) also holds 20% and the remaining 5% are owned by the Kipeto Community Trust.
The project has received USD 232.6m (EUR 208.8m) in funding by the Overseas Private Investment Corp (OPIC), the US government’s development finance institution.
China Machinery Engineering Corp (HKG:1829), or CMEC, signed a turnkey contract for the construction of the wind farm this January, saying the project will be built in 23 months from start of construction.
The Kipeto wind farm will be equipped with 60 turbines of US conglomerate General Electric Co (NYSE:GE), each with a hub height of 80 m and rotor blade of 51m. It will be among the first utility-scale wind farms in Kenya, which is targeting 2,036 MW of installed wind power capacity by 2030.
According to Kenya Power information, Kenya’s demand is expected to rise to approximately 15,000 MW in 2030. The interconnected system installed capacity as at March 2016 was 2,341 MW which includes 632 MW of geothermal energy and 821 MW of hydro power.
(USD 1 = EUR €0.898)