The European Investment Bank said the €60 million (Sh7.5 billion) credit line would go to Radiant Energy and Eldosol Energy in Eldoret.
The two solar parks have a capacity of 40 megawatts each and will be connected to the national power grid and the electricity will cost Sh12.36 per unit ($0.12) under Kenya’s feed-in-tariff for solar power.
The European Investment Bank will offer a Sh7.5 billion loan this year for construction of two solar power plants, underlining the growing interest by global organisations in financing Kenyan green projects.
The bank said the €60 million (Sh7.5 billion) credit line would go to Radiant Energy and Eldosol Energy, which are owned by same developers and whose solar projects are located next to each other in Eldoret. The two solar parks have a capacity of 40 megawatts each.
“The financing will be finalised soon, this year,” said EIB East Africa head Catherine Collin.
The solar plants will be connected to the national power grid and the electricity will cost Sh12.36 per unit ($0.12) under Kenya’s feed-in-tariff for solar power.
The EIB records indicate construction of the two solar farms will cost Sh17.6 billion (€140 million).
This means the bank’s Sh7.5 billion loan will cover only a fraction of the expenses, and the developers will raise the remaining Sh10.1 billion through other avenues, including equity.
