Africa Renewables: Kenya solar energy firm signs 40 MW power deal with State-run utility

Zagtouli solar power station
Zagtouli solar power station

A private Kenyan power firm has signed a 20-year deal to sell 40 MW it will generate from a solar plant it is building to the East African nation’s State-run distributor, its chief executive said.

Kenergy Renewables signed the agreement to sell the electricity to Kenya Power at $0.08/kWh, Khilna Dodhia said in an interview on Thursday.

The company requires a letter of support from the government which will provide clarity on when the plant will become operational, she told Reuters.

“Once you secure a PPA (power purchase agreement) that’s a sign you are on your way. But lenders require a letter of support from government to green light funding,” she said.

Dodhia did not say what the total cost of the project would be, but said they typically cost $60-million to $70-million.

Kenergy has already invested more than $2-million in the early stages of development for the Rumuruti project in Laikipia County in northern Kenya, Dodhia said.

Kenya has an installed generating capacity of 2 370 MW and peak demand of about 1 770 MW. It relies heavily on renewables such as geothermal and hydro power.source: reuters

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