Aldwych raises its stake in scramble for energy market

Last week, the investors said they hoped to recoup their joint debt and equity investments by the fifth year of operation. KPLC is responsible for the revenue to service the huge loans in accordance with a power purchase agreement.

The project entails construction of a wind farm consisting of 365 wind turbines, each with a capacity of 850 kilowatts and is the first of its kind in Kenya.

The second major component of the project involves building of a 400- kilometre power transmission line from Laisamis in Marsabit through Maralal, Rumuruti and Longonot, where the wind farm will connect to the national grid.

The cost of the transmission line -- to be built on a buy, operate and transfer basis- is estimated at Sh14 billion.

LTWP hopes to supply 300 MW (or 17 per cent) of power to Kenya’s national electricity grid putting the country in the clean energy gravy train.

The Dutch consortium has leased 66,000 hectares of land on the eastern edge of the world’s largest permanent desert lake. The volcanic soil is scoured by hot winds that blow consistently year round. According to Mr Carlo Van Wageningen, chairman of the company, the average wind speeds in Turkana stands at 11 metres per second, akin to “proven reserves” in the oil sector. 

If the project succeeds, the firm estimates that there is the potential for the farm to generate a further 2,700MW of power, some of which could be exported.

Under the new arrangement, the state and not LTWP will construct a 266-mile transmission line and several substations to connect the wind farm to the national grid.

The African Development Bank (AfDB), the lead financial arranger for the project, has been asking for a government guarantee to cover the risks in the private-sector funded project.