Kipeto Energy has concluded full connection of its wind power project to the national grid, setting the stage for cheaper power and reduction of costly thermal power plants.
Kipeto will now supply 100 megawatts to Kenya Power #ticker:KPLC from all connected 60 wind turbines to the national transmission line, each generating 1.7 megawatts renewable energy.
Its completion comes as the country moves to reduce costs of purchase as a result of idle electricity on the nature of the current power-purchasing contracts and fuel prices used in electricity generation usually passed to bills.
“Today is a proud day for Kipeto and the local community of Kajiado as we enter into commercial operation after a 12-year journey…Now we are providing clean and sustainable energy for the people of Kenya with the support of KPLC and Ketraco,” said Dr Kenneth Namunje, chairman and director of Kipeto Energy Plc and Craftskills Wind Energy International.
The project will be the country’s second largest wind power project, after Lake Turkana Wind Plant with 365 wind turbines and capacity of 310 MW.
It is in a 20-year PPA with Kenya Power signed in July 2016.
The construction of Kipeto project was started in 2009 by BTE Renewables which is owned by global investor firm, Actis, and Kenyan-owned renewable developer Craftskills.
The project has a development financing of Sh34.6 billion ($321 million) - $233 million from US government through Overseas Private Investment Corporation for construction and $88 million of equity from shareholders Actis and Craftskills with 88 percent and 12 percent stake respectively.
The completion comes at a time when a taskforce is reviewing power purchase agreements (PPAs) signed between Kenya Power and all electricity generators to reduce electricity prices amid high cost of sales and reduced consumption.