CHANGING LIVES WITH
Established in 2009, Kipeto Energy PLC (KEP) has been developing the Kipeto Wind Energy Project, with the aim of supplying 100 megawatts (MW) of clean renewable energy to the national grid. The project will construct 60 wind turbines and a 17 km 220kV transmission line to evacuate the power to lsinya substation, in the Kajiado County. The Project has $320m of committed financing and is now under construction, with operations expected to begin at the end of 2020.
The project has a 20 year Power Purchase Agreement signed with Kenya Power and Lighting Company in July 2016, a signed Letter of Support from the Government of Kenya and the required permits and environmental approvals.
The turbines will be provided by General Electric who will also provide operations and maintenance services for the project once operational. China Machinery Engineering Corporation (CMEC) will be providing Engineering, Procurement and Construction (EPC) services. The EPC contract was signed with CMEC in March 2018, and the contractor began construction works in Q3 2018.
The US government via the Overseas Private Investment Corporation (OPIC) has committed to provide USD 233 million in senior debt to fund construction alongside approximately USD 88 million of equity from shareholders Actis (88%) and Craftskills Wind Energy International (CWEIL) (12%).
CWEIL is a Kenyan wind developer led by Dr. Kenneth Namunje and Simon Guyo, who originally applied to the Ministry of Energy for rights to develop the Kipeto site in 2009. They have a deep relationship with the local community.
Actis is a leading pan-emerging markets investor with a 70 year heritage. Actis has been investing in power generation, real estate and other businesses in Kenya for decades, as the founding investor in Globeleq (investor and operator of the Tsavo power plant), AutoXpress, Garden City, Nairobi Business Park and Mentor Management. Since 2002, Actis Energy has committed USD 5 billion to 33 investments across more than 35 countries, a total of 18GW of installed generating capacity and impacting more than 80 million electricity consumers. Actis is providing the equity capital to KEP through its renewable energy company, Biotherm Energy. Biotherm Energy has a further 284MW of wind and solar projects in construction in South Africa.
KEP has leased and secured more than 60 plots within the Kipeto area for the wind turbine footprint and the Transmission Line through voluntary participation of landowners. KEP has also built 83 houses for landowners within the turbine area footprint.