Independent power producer Globeleq (IPP) recently announced the financial closing of the Malindi solar project in Kilifi County, Kenya. This step marks the beginning of the construction of the 52 MWp solar park.
“The favourable investment climate, combined with strong support from the local community, paves the way for this important project and future investments in Kenya. We are extremely pleased to make this investment in the Kenyan energy sector”. Paul Hanrahan, Globeleq’s President and CEO, made these enthusiastic remarks. The independent power producer (IPP) recently announced that it has completed the financing plan for its Malindi solar project in Kilifi County, southeast Kenya.
This financial mobilisation shows the participation of several actors in this project. These are: Africa Energy Development Corporation (AEDC), a company specialising in renewable energy production that operates in East Africa. It will own 10% of the future Malindi solar park. Commonwealth Development Corporation (CDC Group), the British government’s development finance agency, is another player in this financial mobilisation. It is the largest financial partner in the project with an investment of $52 million. The roundtable includes $20 million from the German Investment Corporation (DEG), a development finance institution owned by Kreditanstalt für Wiederaufbau (KfW), the German development agency.
The beginning of the work
Idea Power is also participating financially in Malindi’s solar project. The total cost of the work is expected to be close to $70 million. The contract for the engineering, procurement and construction of the solar power plant was awarded to Sterling and Wilson Solar, a subsidiary of the Indian company Sterling and Wilson. The completion of the financial closure of the Malindi solar project paves the way for the start of construction work.
“The AEDC is delighted to have reached this important milestone for the Malindi project. Together with our partners, we are very pleased to contribute to Kenya’s sustainable economic development and look forward to continued growth in sub-Saharan Africa,” said Zohrab Mawani, Director of the AEDC. Globeleq plans to employ 250 people for the construction of the solar power plant. Most of the employees are Kenyans, and will work for a delivery of the site in 2020. The plant will then supply 52 MWp of electrical energy.
The electricity will be sold to Kenya Power (KPLC), Kenya’s national distributor, as Globeleq has signed a 20-year power purchase agreement with KPLC.
Jean Marie Takouleu