Solar projects in Kenya are set to benefit from multiple financial instruments in a bid to support green living projects and energy-efficient buildings. Since the beginning of the year, a number of financial organizations have funding arrangements with the country to this end.
The most recent entrant, the European Investment Bank (EIB), recently announced that it would give a US $7.5m loan this year for the construction of two solar power plants, underlining the growing interest by global organizations to finance local green projects.
The bank said the US $7.5m credit line will go to Radiant Energy and Eldosol Energy. They are owned by the same developers, and whose solar projects are located next to each other in Eldoret. The two parks have a capacity of 40MW each.
As a result, the US $7.5m loan will cover only part of the expenses. The developers will then raise the remaining US $10.1m through other avenues. Solar energy systems maker Orb Energy announced US $1m in financing. This is part of the efforts to promote the expansion of renewable energy in Kenya.
Reduce Electricity costs
It aims to provide finance to potential users looking to reduce electricity costs both at home and in their businesses by acquiring a rooftop solar system. The money will be boost its residential and commercial solar business in Kenya.
In January, the World Bank also approved US $150m financing for the Kenya Off-grid Solar Access Project. The funds will enable the Rural Electrification Authority (REA) to establish solar mini grids and boost transformer networks across the country.
According to REA Chairman Simon Gicharu, the mini grids will lead to an increase in solar pumping systems to provide water for drinking and irrigation in 14 underserved counties in northern and north-eastern Kenya.