Kenya Power has signed an agreement with Kipeto Power that will see the generation of electricity in Oldonyo Narok, Kajiado. The construction of Kipeto wind farm to supply Kenya power with 100MW will greatly boost Kenya’s supply.
Kipeto has successfully received US$ 233m financing from the Overseas Private Investment Corporation (OPIC) which is the development fund of the United States government, for the wind project.
In reference to the PPA, Kipeto is stated to construct, own, operate and maintain the project, with Kenya Power purchasing the power generated.
“The PPA is an important step forward in enabling the country to meet its development goals by utilising renewable power that is cost effective and environmentally friendly,” said the acting Secretary for Energy and Petroleum, Henry Rotich.
Construction of Kipeto wind farm to supply Kenya power is currently one of the new major energy-generation projects in Kenya. Electricity from Lake Turkana Wind Power which will hopefully commence by 2016 will be priced at 8.42 US cents per unit (Sh8.3).
Kenya Electricity Generating Company (KenGen) sells its hydropower to Kenya Power at Sh3 per unit ($0.03) – the cheapest source, followed by geothermal energy at Sh7 per unit ($0.07) and thermal energy which is the most expensive at Sh19.2 per unit ($0.19).
In Kenya, renewable energy (hydro and geothermal) currently accounts for over 85 per cent of the country’s energy. Wind energy presently stands at a negligible 0.4 per cent in the country’s energy mix but this will significantly change in the coming years with the introduction of power from the Lake Turkana and Kipeto projects, which combined, will add 400 MW.