Lake Turkana wind plant is a 310 MW onshore wind farm in Marsabit County, Kenya. Construction on the project began in 2014 and was completed in 2018. The wind farm was connected to Kenya’s national grid in September, but the official inauguration was celebrated in July 2019.
The Lake Turkana wind plant project represents Kenya’s biggest private investment, which amounts to about $680 million. The energy project was designed with the capacity to generate 1,400GWh of electricity annually over the course of its 25-year life span. Presently, wind farm accounts for about 17% of Kenya’s total installed capacity.
Reported earlier
Jun 2014
Africa’s largest wind power project receives US$253m from OPIC
The biggest wind power farm project in Africa located in Turkana in Kenya was officially inaugurated by President Uhuru Kenyatta in a function that saw many investors put their money into renewable energy production specifically wind energy.
The multi-million Turkana wind project which costs US$ 692m is also the largest single private sector initiative in Africa with a number of investors participating.
This development is anticipated to produce 310 MW of electricity and the first 90 MW of power produced is expected to be connected to the national grid before the end of 2016. This initiative will also enable the country to reduce the amount of thermal energy used.
It will consist of 365 turbines and is expected to achieve a 68 percent load capacity factor, which will make it the most efficient wind power farm in the world.
The Kenyan president was very pleased while breaking ground for the project to commence and said that Kenya will continue investing more in green energy and will continue creating the right environment for more investors in the energy sector.
The project is funded by many banks including the development banks of Denmark, the Netherlands, the European Investment Bank, The African Development Bank (AfDB), South Africa’s Nedbank, and Standard Chartered Bank.
Currently, Kenya is a pacesetter in geothermal energy production with the successful completion of the Lake Turkana Wind Power project.
The country is expected to witness similar initiatives as the potential for wind power projects exists in many parts of the country.
Sep 2014
Spain to pick Firm over Kenya’s LTWP stalled Power line
Kenya has asked Spain to nominate a new firm to complete the much-delayed Lake Turkana Wind transmission. This comes after its termination of an earlier contract awarded to a debt-ridden Spanish contractor.
Charles Keter, the Energy secretary said that since the power line receives funds from the Spanish government, Nairobi has asked Madrid to look out for a new contractor to complete works on the 428-kilometer high-voltage line started by Isolux. In July Isolux filed for bankruptcy in Spain.
Spanish Contractor
“We have asked Spain for a shortlist of competent companies. The project has to be under a Spanish contractor. This is because the credit is from the Spanish government,” Mr. Keter said in an interview.
“We expect to hear from them and chart the way forward,” he further added.
The total cost of the Loiyangalani-Suswa line power line is $152.6. The line will evacuate electricity from the 300MW Lake Turkana Wind Power, publicized as Africa’s largest wind farm.
Isolux last week moved to court to challenge the contract termination notice dated August 14 from the Kenya Transmission Company, which is overseeing the project.
The government is racing to boost works on the project set upon by multiple headwinds, and avoid paying a monthly fine of $7M for failure to complete the transmission line in time with the Lake Turkana wind farm.
Only 70 percent of the work was complete by the time Kenya pulled the plug on Isolux last week. The Madrid-based firm bagged the tender for the power line in 2011 and Isolux was initially to complete the job by end of 2013.
However, debt and liquidity challenges at Isolux’s parent firm have greatly affected the delivery of the line. This has since seen the firm miss a revised completion date of October 2016. This in turn forced Kenyan taxpayers in March this year to bail out the cash-strapped Isolux.
Dec 2014
Lake Turkana wind power farm project in Kenya to commence after signing of a new deal
Construction of the Lake Turkana Wind Power farm is expected to commence in February 2015, after the signing of an agreement for related risk guarantee insurance by two banks.
The signing of the deal puts an end to a long search for an insurer for the project by Lake Turkana Wind Power Limited. The search had stalled the implementation of the project increasing the total cost of the project from the initially estimated cost of US$717m to US$ 764m. This was due to the extension of contracts the company had entered into with contractors.
The African Development Bank (AfDB) and the Standard Chartered Bank now will insure Lake Turkana Wind Power Limited for a maximum of US$ 24m, an initiative that will allow for the continuation of construction works for the project.
The guarantee covers the risk of failure by the government through the Kenya Electricity Transmission Company (Ketraco) to develop the necessary infrastructure to take the electricity generated into the national grid. It will also cushion Lake Turkana Wind Power Limited if Kenya Power fails to pay as agreed in the power purchase agreement between the two.
The Lake Turkana Wind Power project (LTWP), which sits on 40,000 acres (162km2) of land in Loyangalani District – Marsabit West County in Northern Kenya, will provide 300 MW. Construction of the wind farm is expected to take 32 months.
The project has already received US$ 253m from the Overseas Private Investment Corporation according to earlier reports this year and will provide power enough to serve 2.5 million Kenyans.
Feb 2015
Vestas supplies wind turbines for Kenya’s wind farm; the firm’s largest single order
Vestas has supplied 365 wind turbines that will see Kenya’s Lake Turkana Wind Power Project (LTWP) give off 310 megawatts. The order becomes the largest single order for the company. The wind power project was commissioned in March 2014. It is estimated to cost US$ 766.6m and is expected to be the largest wind farm in Africa. It will be constructed on 40,000 acres, and construction was to commence this month.
The wind power farm project will be financed by several companies which include; OPIC, Vestas, KP&P BV Africa, Aldwych International Limited, Norfund, Finnfund, and the Danish Investment Fund.
Kenyan Government has an initial target of 5,000MW electricity generation by 2017 and 18, 000mw and anticipates that the energy demand will increase to reach 18,000MW by the year 2030, part of which will be generated from LTWP.
Alternative sources of power will come from oil and gas sector, especially with recent discoveries.
Kenya is currently moving in a new direction in terms of power generation and it is embracing natural gas, especially from recently discovered gas in northern Kenya and is also thirsty to boost the country’s power base so as to meet the ever-growing demand for electricity utility in the region.
Kenyan Lake Turkana Wind Power Project ordered 365 wind turbines, the largest single order for Vestas, which accounted for the company’s 13.75 percent of sales made in its last quarter of 2014. Kenya is hoping to generate 13% of its electricity from the wind power project.
The project will be insured at a cost of US$ 24m by the African Development Bank (AfDB) and the Standard Chartered Bank following the signing of a related agreement last year. Kenya Electricity Transmission Company (KETRACO) will also construct a 450km transmission line that will see more people connected to the grid by linking Nairobi’s outskirts to Loyangalani.
Jul 2015
Kenya: Africa’s biggest wind power project commences
The biggest wind power farm project in Africa located in Turkana in Kenya was officially inaugurated by President Uhuru Kenyatta in a function that saw many investors put their money into renewable energy production specifically wind energy.
The multi-million Turkana wind project which costs US$ 692m is also the largest single private sector initiative in Africa with a number of investors participating.
This development is anticipated to produce 310 MW of electricity and the first 90 MW of power produced is expected to be connected to the national grid before the end of 2016. This initiative will also enable the country to reduce the amount of thermal energy used.
It will consist of 365 turbines and is expected to achieve a 68 percent load capacity factor, which will make it the most efficient wind power farm in the world.
The Kenyan president was very pleased while breaking ground for the project to commence and said that Kenya will continue investing more in green energy and will continue creating the right environment for more investors in the energy sector.
The project is funded by many banks including the development banks of Denmark, the Netherlands, the European Investment Bank, The African Development Bank (AfDB), South Africa’s Nedbank, and Standard Chartered Bank.
Currently, Kenya is a pacesetter in geothermal energy production with the successful completion of the Lake Turkana Wind Power project.
The country is expected to witness similar initiatives as the potential for wind power projects exists in many parts of the country.
Oct 2015
Google eyes share in Lake Turkana wind power construction project in Kenya
Information Technology giant Google has announced that it was buying a 12.5 percent stake in Africa’s largest wind farm that is the Lake Turkana Wind Power construction project in Kenya. The IT firm has agreed to purchase the stake in the wind farm project in Kenya from the project’s third-largest investor Vestas when it becomes operational in 2018.
Google is set to invest US$40,000 in the Lake Turkana wind power construction project in Kenya. The announcement by Google to fund the project makes it part of a diverse group of international investors supporting the project, key among them the Overseas Private Investment Corporation (Opic), the US government’s development finance institution, and Vestas, which is also supplying turbines for the wind farm.
Google Energy lead for Africa Joseph much said that the decision to invest in the biggest wind farm in Africa was informed by the fact that the project makes economic sense. He added that the project had the potential to have a massive impact on Kenya’s energy grid, helping to accelerate the deployment of renewable energy in one of the world’s fastest-growing countries.
In recent years, Kenya has shifted its power generation focus to renewable sources such as geothermal, wind, and hydropower. The country targets to expand installed capacity by about 5,000 megawatts by 2017.
Currently, Wind power generates only 1.1 percent of Kenya’s energy mix compared to 36 percent from hydro sources, 26 percent from geothermal, and 30.1 percent from thermal sources.
Although originally planned for completion in 2011, the project has been hit by delays partly because it was awaiting a 428-km high-voltage line linking the area. The transmission line was finally approved in August 2014 and will now take about two years to construct.
Constructed in a corridor of land that receives steady winds throughout the year, the wind farm construction project in the Lake Turkana area lies over 40,000 acres. But the wind firm could be built on a further 110,000 acres.
Opic president and chief executive Elizabeth Littlefield said that the LTWPP shows their commitment to the progress of President Barack Obama’s initiative Power Africa.
In 2014, Opic approved $250 million in debt financing and $46 million in political risk insurance to support the LTWPP.
Seen as a major deterrent factor to economic growth, Google has committed more than $2 billion globally to advance 22 clean energy projects. Last year, the US-based international firm invested $12 million in the Jasper Power Project which is a 96MW South African solar photovoltaic plant –the first renewable energy investment in Africa by Google.
IT firm Google runs big data centers to power the billions of searches it processes every day making billions of profits annually. In recent years, however, it has branched out into new projects beyond its core internet business.
Oct 2016
Lake Turkana wind power project in Kenya stays on track
As the Mega wind farm in Kenya which is the Lake Turkana Wind Power Project- rises from the arid landscape of northwest Kenya’s Marsabit County, one thing is certain-the wind project will not only transform the country’s energy prospects but Africa’s energy landscape.
Seen as a viable project, technology giant Google announced that it was buying a 12.5 percent stake in Africa’s largest wind farm that is the Lake Turkana Wind Power construction project in Kenya.
A spot check on the Lake Turkana Wind Power project shows that Developers are nearing the halfway mark in the raising of 365 wind turbines that will deliver emissions-free electricity to support the country’s growing economy.
One of the stakeholders- Vestas Wind Systems installed the 154th turbine at the Lake Turkana Wind Power project, just kilometers from the massive saline lake, popularly known as the Jade Sea for its translucent blue-green water.
The raising of the 850-kilowatt V52 generator, which Vestas calls “the turbine that goes anywhere,” marked another milestone for the project’s developers and hundreds of workers toiling in the harsh conditions of western Marsabit County.
The planned 310-megawatt facility, occupying 40,000 acres near the village of Sarima on the lake’s southeast shore, is Kenya’s largest private investment to date, at nearly $700 million. Completion of the Lake Turkana Wind Power project is set for 2017.
The mega wind farm in Kenya is expected to power roughly 1.5 million homes and will account for roughly 15 percent of the country’s daily electricity load officials involved in the project have said. The project puts Kenya as a bold and visionary leader as far as clean energy is concerned.
Kenya prides itself in one wind farm operating in the Ngong Hills outside Nairobi. The wind project was commissioned as a pilot for Kenya Electricity Generating Co. Ltd. (KenGen) in 1993 with two turbines donated from Belgium. It was recommissioned in 2009 and expanded last year from 5.1 MW to 25.5 MW of capacity.
Oct 2016
Lake Turkana Wind Power begins turbine tests
Lake Turkana Wind Power Ltd (LTWP) has commenced testing the turbines at its Marsabit wind farm for power generation. The company is gearing up to start feeding the national grid with electricity next year.
The wind farm is expected to generate an initial 90MW by the second quarter of 2016 before reaching a full capacity of 310MW by June 2016. The wind farm is also expected to play a critical role in reducing power costs in the country by increasing the amount of cheap electricity generated from renewable energy sources.
According to Phylip Leferink LTWP’s General Manager, the company has installed 40% or rather 155 of the 365 turbines needed and had started testing them. The project is however considered to be the largest wind farm in Africa once completed.
“The Vestas turbines are already being tested for power generation. We expect to complete the installation process of the full wind farm by June 2017, with a turbine being installed daily,” said Leferink.
“By managing to hoist these turbines within the stipulated time, the team has not only achieved a technological feat but also navigated through a logistical challenge of getting all the turbines in Loiyangalani, which is 1,200km from the port of Mombasa. This is a clear demonstration that we are on course to launch the largest wind farm in Africa on time,” he added.
Marsabit wind farm sits on 40,000 acres of land and is located in an area that receives steady wind throughout the year. However, LTWP has a 20-year deal to sell electricity at Sh8.6 per kilowatt/hour (kWh) to Kenya Power from its Marsabit wind farm.
The power will be evacuated and transmitted to the national grid through a double circuit 400kv, 428km transmission line currently being constructed by the Kenya Electricity Transmission Company (Ketraco).
Other wind power projects that are in the pipeline include Kinangop Wind Park (Nyandarua County), Kipeto Energy Wind Park (in Kajiado County), and the planned Mount Meru Wind park (Meru County).
Nonetheless, KenGen is also undertaking the expansion of its Ngong Wind Park. Some of these projects have faced delays due to a mix of challenges that include land acquisition. German development agency GIZ adds that inadequate transport infrastructure in areas with high potential for wind power plants has also slowed project implementation.
According to GIZ, high-potential areas tend to be far from electricity demand centers. Security in reaching these areas can be of concern. The supply of auxiliary equipment, related services, and the availability of technical know-how concerning wind generation are also limited.
Kenya relies heavily on renewables such as hydro-power and geothermal. However, the country aims to expand installed capacity to more than 6,000MW by 2017 through the commissioning of more power plants. Meanwhile, Kenya has installed a power-generating capacity of 2,333 megawatts by the end of 2015, an increase from 1,800MW in 2013.
Nov 2016
Kenya’s Lake Turkana Wind Power project nears completion
Kenya’s pursuit for cheaper power is beckoning with the US$ 6.8 billion Lake Turkana Wind Power (LTWP) project expected in the second quarter of 2016.
Phylip Leferink, General Manager of the project said he is pleased with the advancement in the haulage of turbines to the site from the port of Mombasa and between May and June the firm will be set to add more power to the national grid.
He stated once the transmission lines are ready, the project may start a month in advance .“We have installed more than 200 turbines in the past six months, out of the wind 365 turbines required on completion,” he said.
“The 310 MW turbines, which are linked to 52-meter rotors, are raised on towers stretching up to 44 meters high across the arid Sarima Village, in Marsabit County. Once finished, the project will be the leading wind farm in Africa,” said Mr. Leferink.
The wind farm aspires to provide dependable, low-cost wind power to Kenya’s national grid, equal to roughly 18 percent of the nation’s current installed electricity generating capacity. The firm said the turbines are already being tested for power generation.
The wind farm is estimated to be done by June 2017, with a turbine being installed every day. “By managing to hoist these turbines within the predetermined time, the team has not only attained a technological accomplishment but also navigated via a logistical challenge of getting all the turbines here in Loiyangalani, which is 1200 KM from the port of Mombasa,” he said.
Delays in the completion of transmission lines linking the Lake Turkana Wind Power project to the national grid are anticipated to obscure the firm’s plan in delivering electricity to the grid. The transmission line was projected to be done by October, but the state-owned Kenya Electricity Transmission Company (KETRACO) is behind schedule after it was smacked by a compensation dispute with the communities along the line.
The wind company says it is still on course. The assembly of the turbines commenced in March 2016 after the civil works on the foundations of an initial lot of turbines had been done.
The turbine technology is of Danish origin but the manufacturing of the turbines, blades, and towers was done in the Vestas manufacturing facilities in China. “We are pleased with the progress that we have made so far; we are working with our project partners to guarantee that we complete this wind farm within the set time. This will ensure that we will soon be able to play a paramount role in Kenya’s energy supply and make an important input towards the nation’s economic growth,” Leferink explained. The firm targets to introduce the first 90 MW of wind power into the national grid by the second quarter of 2017.
When operating at complete capacity, Lake Turkana Wind Power will add 310 MW of renewable generation capacity to Kenya’s grid. This production from the wind farm will be sufficient to power more than 1 million Kenyan homes.
The Marsabit-based wind farm has a 20-year deal to sell electricity at Sh8.6 per kilowatt/hour (kWh) to Kenya Power. The farm sits on 40,000 acres of land in a region that gets stable winds throughout the year.
The power will be evacuated and conveyed to the national grid through a double circuit 400kV, 438km transmission line that is presently being built by Kenya Electricity Transmission Company (Ketraco). Kenya, which depends heavily on renewables such as geothermal and hydro-power, aspires to expand installed capacity to about 6,700 MW by 2017.
Nov 2016
EU pledges more funding for Lake Turkana Wind project
The European Investment Bank action Jonathan Taylor has declared more capital investment funds for the ongoing Lake Turkana wind project in Kenya. (EIB) Vice-President responsible for climate action Jonathan Taylor has declared more capital investment funds for the ongoing Lake Turkana wind project in Kenya.
Taylor made his declaration statement at the ongoing UN world climate change conference (COP22) in Marrakech, some renewable energy projects are gaining praise and additional capital investment.
However, the European Union has cited the project as a global example of a good investment in sustainable energy. The 310MW wind power project, located in Kenya, East Africa, is said to be the largest wind farm on the African continent.
Last month, the wind project developers declared having installed 155 of 365 turbines in the past 6 months.
“Transformational projects such as the Noor solar power plant at Ouarzazate [Morocco] and Lake Turkana wind farm in northern Kenya demonstrate how private investment across Africa can be unlocked to strengthen sustainable energy generation,” said Jonathan Taylor.
Meanwhile, the Vice-President announced that the bank has already given Sh 23bn (US$226m) to support the project, and pledged additional financial support from the European Union, through the EU-Africa Infrastructure Trust Fund and a broad range of international investors.
Moreover, as the largest single wind farm in sub-Saharan Africa, the project is expected to generate around 20% of Kenya’s power, providing reliable, low-cost wind power to the country’s national grid.
According to Taylor, the availability of affordable energy is essential for Africa, and electricity from the Lake Turkana Wind Power project will support economic growth across Kenya by helping to ensure power supply during periods of peak demand.
On completion, the project will encompass 365 wind turbines, each with a generation capacity of 850kW, the associated overhead electric grid collection system, and a high-voltage substation that will be connected to the national grid.
However, the power produced will be bought at a fixed price of Sh8.6 ($0.084)/kWh by Kenya Power over a 20-year period in accordance with the power purchase agreement (PPA).
June 2017
Turkana Wind Farm delayed until 2018
The 300MW Lake Turkana wind farm which was anticipated to come online this month will now wait until 2018. The 365 turbines which were installed by Danish firm Vestas Wind Systems will not be active until next year.
This is due to the lack of transmission infrastructure that is needed to connect the water source to users around Turkana.
This is despite the Kenyan government taking over the payment in March for the procurement of the power transmission line for the project in a bid to ensure that the project completion date is met.
The head of Vestas’ Central European and sub-Saharan business Nils de Baar, at the Africa Energy Forum in Copenhagen, spoke of the project’s sighting connection of the wind farms to the grid. This, he added, could have contributed to the delays in the completion as well as activation of the project.
The project which costs approximately $678 million project is Kenya’s largest single private investment and is being monitored closely by investors looking for opportunities in African renewable energy.
In an earlier report, the Energy Cabinet Secretary Charles Keter said that the government had moved in to pay sub-contractors and suppliers owed by Madrid-based Isolux. Keter stated at the time that the company owed the suppliers nearly $15m for the supplies, assuring the contractors that they would deal with them directly and seek refunds from the Spanish government.
He also added that suppliers will be issued with letters of credit in order to guarantee timely payments
July 2017
Kenya commissions US$17m electricity project in Turkana
Kenya has commissioned a mega electricity project that connects the largely arid Turkana County to the national grid, boosting the residents’ access to reliable and affordable electricity for the first time in history.
Speaking when he commissioned the project, President Kenyatta said the residents of Turkana will no longer operate under the darkness as they will also enjoy light just like their fellow Kenyans in other parts of the country.
The Kshs 1.69 billion Lokichar sub-station electricity project, implemented through the Rural Electrification Authority, is an initial step towards providing sufficient energy for sustained development in line with the Jubilee’s development agenda for the vast arid county that was neglected by previous regimes.
“From now on there will be no darkness in Turkana, this morning we switched on a Government diesel-powered generator in Kakuma and they will no longer be paying Kshs 50 per day to people who privately own diesel generators. They will instead only be charged Kshs 250 per month,” said President Kenyatta.
The project currently covers Lokichar and Kalemung’orok towns but plans are underway to extend it to Lodwar and other towns in the county. Turkana County is emerging be a major source of electric power in Kenya.
Kengen’s Turkwel Hydro Power Plant, situated in the southwest of Turkana County, produces hydroelectric power which is connected to the national power grid at Lessos.
President Uhuru said that with this project in place, the perennial power blackouts will soon be a thing of the past. The residents will now enjoy electricity without experiencing outages.
The President, who was accompanied by Deputy President William Ruto, pointed out that the commissioning of the project is another step towards lighting up the whole county of Turkana, saying soon Lodwar town will be connected to the national grid thereby doing away with diesel-powered generators.
Aug 2017
Lake Turkana Wind Power Limited starts billing Kenya Power for idle wind farm
The Developer of the Lake Turkana Wind Power project Lake Turkana Wind Power Limited is billing Kenya’s Electricity company Kenya Power every month. This is a result of the failure of the government to distribute their products. This comes despite recent discussions to delay the billing.
The government of Kenya could be getting an Sh700 million monthly burden. “An inter-ministerial committee has since been formed to address the matter,” said Ken Tarus Kenya Power’s managing director.
Construction Delays
The 310 megawatts wind farm was to supply the first 50 megawatts to the grid in October 2016. Delays in construction have caused a delay in electricity clearing from the northern town of Marsabit to the Suswa substation.
The government committed to linking the mega wind park to the grid by January 2017. This would allow the owners of the project to earn income from power sales in time to pay bank loans in June. In case of any delays, the government agreed to pay the owners of the wind project a monthly fee of Sh700 million.
The aim of the fine is to repay investors for the expenses they incur on energy projects when electricity is not supplied to the grid for sale to end users. The transmission line was approved in August 2014
Other investors include the Industrial Fund for Developing Countries, Norwegian Investment Fund for Developing Countries, Vestas Eastern Africa and Google, KP&P Africa B.V., and Industrial Development Corporation of South Africa.
Led by geothermal at nearly half of the energy mix, wind power in Kenya accounts for only one percent of what the Kenyan economy actually takes in.
Sep 2017
Spain to pick Firm over Kenya’s LTWP stalled Power line
Kenya has asked Spain to nominate a new firm to complete the much-delayed Lake Turkana Wind transmission. This comes after its termination of an earlier contract awarded to a debt-ridden Spanish contractor.
Charles Keter, the Energy secretary said that since the power line receives funds from the Spanish government, Nairobi has asked Madrid to look out for a new contractor to complete works on the 428-kilometer high-voltage line started by Isolux. In July Isolux filed for bankruptcy in Spain.
Spanish Contractor
“We have asked Spain for a shortlist of competent companies. The project has to be under a Spanish contractor. This is because the credit is from the Spanish government,” Mr. Keter said in an interview.
“We expect to hear from them and chart the way forward,” he further added.
The total cost of the Loiyangalani-Suswa line power line is $152.6. The line will evacuate electricity from the 300MW Lake Turkana Wind Power, publicized as Africa’s largest wind farm.
Isolux last week moved to court to challenge the contract termination notice dated August 14 from the Kenya Transmission Company, which is overseeing the project.
The government is racing to boost works on the project set upon by multiple headwinds, and avoid paying a monthly fine of $7M for failure to complete the transmission line in time with the Lake Turkana wind farm.
Only 70 percent of the work was complete by the time Kenya pulled the plug on Isolux last week. The Madrid-based firm bagged the tender for the power line in 2011 and Isolux was initially to complete the job by end of 2013.
However, debt and liquidity challenges at Isolux’s parent firm have greatly affected the delivery of the line. This has since seen the firm miss a revised completion date of October 2016. This in turn forced Kenyan taxpayers in March this year to bail out the cash-strapped Isolux.
Oct 2017
Kenyans set to pay owners of Lake Turkana Wind Power US $552m
Owners of Lake Turkana Wind Power are set to receive a lump sum of Sh5.7 billion from the Kenyan government. The amount is for penalties arising from the government’s failure to connect power from the project to the national grid in breach of contractual terms. The contract provided that the government would incur penalties for failing to take up power from the Lake Turkana wind project. The project was completed in January.
The payments
According to Henry Rotich the Treasury Cabinet Secretary, the payments are in line with an agreement between the government and Spanish firm Isolux Ingeneria SA which went under after its parent company in Spain filed for bankruptcy.
He added that these payments should have started in January while saying that the project borrowed money from financiers and that it has to repay the loan by selling power to Kenya Power.
Earlier, the government had indicated that the penalty would be staggered over six years. It is recoverable on power consumers’ bills.
According to Mr. Rotich, the government had to provide repayment of the debt as captured by a letter of support. This letter was guaranteed by African Development Bank (AfDB) under a partial lease guarantee. This was due to the lack of a line to evacuate power from the Turkana wind energy project.
He also added that the transmission line is currently 60 percent complete. The Kenya Electricity Transmission Company (Ketraco) terminated a contract it awarded the Spanish firm which won the contract for the Sh15.7 billion Turkana-Suswa power.
Mr. Rotich said that the Energy ministry and the Treasury have opened discussions with the government of Spain with a view to getting another Spanish contractor to complete the project as per the contractual agreement.
Feb 2018
Lake Turkana Wind Power line work on a fast lane
A consortium of Chinese firms is racing against time to complete the construction of the Lake Turkana Wind Power line on time. The firms will connect the Lake Turkana Wind Power project to the national grid by August 31 otherwise they will pay a fine of US $13m per month.
NARI Group Corporation and Power China Guizhou Engineering Company were awarded a US $96m contract to complete the transmission line linking Lake Turkana Wind Power to the national grid following the termination of a Spanish firm’s contract last year.
Isolux’s contract was terminated after it was placed under receivership, pushing back the completion of the project. Following delays to evacuate power, Lake Turkana Wind Power has already fined the government US $50.1bn.
The contract with the wind firm spelled out that the Kenyan government would be penalized for failing to take up power from the Lake Turkana wind project which was completed in January.
Transmission Lines
The Kenya Electricity Transmission Company (KETRACO) says the group of Chinese companies will install transmission lines to evacuate power from the northern town of Marsabit to the Suswa substation in Narok.
KETRACO managing director Fernandes Barasa said the government will work with the contractors to ensure the timely completion of the project. He added that the 428km Lake Turkana Wind Power line is currently 70% completed.
The largest wind farm in Africa consists of KP&P Africa, Aldwych International, Investment Fund for Developing Countries, Finnish Fund for Industrial Cooperation, Norwegian Investment Fund for Developing Countries, Sandpiper, and Vestas.
Feb 2018
Chinese firms get US $ 96m Lake Turkana Wind Power line tender
A consortium of Chinese companies has been awarded a US $96m contract to complete the transmission line linking Lake Turkana Wind Power to the national grid by August 31st, 2018; following the termination of a Spanish firm’s contract last year,
The firms, NARI Group Corporation and Power China Guizhou Engineering Company, have committed to pay a fine of US $10m per month should they fail to meet the August 31st deadline.
The 428km power line is 70% complete; this is according to Kenya Electricity Transmission Company (Ketraco) which Tuesday signed the contract with the Chinese companies. It had stopped following the termination of the contract with Spanish firm Isolux, in August last year. It had been put under receivership over debt and liquidity challenges.
The line will evacuate the wind electricity from the Northern town of Marsabit to the Suswa substation in Narok, the country’s main interchange for power from different sources. The developers of the Lake Turkana Wind Power have already fined Kenya US $57m for the delays of the high-voltage line.
Further delays
According to the energy minister, further delays beyond June would attract a US $10m fine monthly to be absorbed by taxpayers through their power bills. Failure to connect the wind farm to the national grid had left the developers stranded with power, amid pressing cash needs such as loan repayment.
Ready for launch
According to Danish wind turbine maker Vestas Wind Systems, the supplier of the wind farm’s 365 turbines, the farm was ready for launch. However, it will be idle until the government installs the transmission line.
Construction of the power line started in November 2015 but was delayed by landowners’ compensation demands and last year’s termination of the Isolux contract.
The wind farm, the largest in Africa, with a capacity of 310MW, enough to power up to one million homes, was supposed to inject the first 50MW into the grid in October 2016 and the whole capacity by last July.
The Treasury allocated US $ 57m in a September supplementary budget to be wired to Lake Turkana for last year’s delay and the fines will be recovered this year from consumers via monthly bills.
The Chinese contractors have been involved in other local works in Olkaria steam fields, Naivasha.
March 2018
Lake Turkana wind power project to come online in August
The Lake Turkana Wind power (LTWP) project will soon be connected to the national grid now that the government of Kenya has contracted a consortium of Chinese companies to complete the construction of a major transmission line that will evacuate electricity, a project that stalled in 2016, when the previous contractor, Italian company Isolux Ingeneria, went bankrupt.
The consortium which comprises the NARI Group Corporation and Power China Guizhou Engineering Company will be responsible for completing the $150-million Loiyangalani-subway power line. The contract was signed by Kenya Electricity Transmission Company ( Ketraco), which is owned by the state.
The Chinese Companies are required to complete the 428 Km 400kV line which is about 70% complete by August.
“We expect the line to be ready by August so that the LTWP project can be connected to the national grid,” Says Ketraco MD Fernandes Barasa.
According to the power purchase agreement signed with electricity utility Kenya power, the Lake Turkana Wind power project is expected to provide reliable, low-cost energy for Kenyans over a 20-year period.
Having been awarded the contract in 2011, Isolux was supposed to complete the project in 23 months.
Kenya, which is highly dependent on hydroelectricity, is desperate to tap electricity from Africa’s largest wind farm and this will soon be possible when the Lake Turkana Wind power project comes online and helps to arrest rising electricity costs caused by a severe drought that has led to the drastic decline in water levels at hydropower schemes, forcing the country to resort to expensive thermal generation.
The cost of electricity could increase further this year even after increasing by 22% over the past 12 months.
April 2018
Africa’s largest wind power project to come online in August
The Lake Turkana Wind power project will soon be connected to the national grid now that the government of Kenya has contracted a consortium of Chinese companies to complete the construction of a major transmission line that will evacuate electricity, a project that stalled in 2016, when the previous contractor, Italian company Isolux went bankrupt.
May 2018
Farmer derails construction of Lake Turkana wind farm powerline
A farmer from Nyandarua has acquired court orders preventing the continuation of the construction of electricity transmission lines that are meant to connect the Lake Turkana wind farm to the national grid, a move that could cost consumers billions of shillings in additional penalties payable to the power producer.
The farmer, from the flower farm African (Kenya Limited), said that the construction of the line cannot continue until they are paid the remaining outstanding US $27m compensation for the planned acquisition of its land for purposes of building the line.
The flower farm argued that the construction of the power lines in their farms had destroyed their irrigation system, matured flowers, and other assets that ground their operations.
Construction delays
The Chinese company Power China Guizhou Engineering Company which was hired to complete the construction of the line has to suspend the work in that section of the line until the court issues fresh orders.
Construction of the power line began late in 2015, and is way behind time, having been held up by land compensation demands and last year’s termination of the Isolux contract. This delay has cost the wind power producer billions of shillings in fines, these fines are now to be paid by taxpayers.
Various businesses along with citizens’ homes will incur a bill totaling US $10m in monthly electricity bills after failing to connect the country to the Lake Turkana Wind Power. Halting construction of the power line, which is 428 kilometers long, has left wind farm developers stranded with power since 2017 with pressing issues such as loan repayments.
The Kenyan treasury put aside and wired US $51m to Lake Turkana in September 2017 and the fine will be recovered this year from consumers via monthly bills.
“This application is hereby certified urgent and should be served upon the respondent within seven days for inter parties hearing on May 23, 2018,” Justice Mary Oundo said even as she ordered that the status quo be maintained.
The flower farm, Afriscan, is seeking compensation of US $12m for lost earnings and destroyed crops from last year and an additional US $12m to cover the entire infrastructure.
Afriscan entered an agreement with Ketraco in 2015 to allow the power lines to pass through the farm subject to prompt compensation. However, no reimbursement has been imminent even as his crops are destroyed, and his high voltage lighting system is demolished which further increases his losses.
Mr.Mwangi from Afriscan said that Kenya Electricity Transmission Company (Ketraco) forcibly entered his farm in early 2017 and began construction. This caused the farm to take a number of loans to keep developing the farm and has made it suffer from heavy losses as a result.
The flower firm also accuses the Agriculture and Food Authority of attempting to defraud it of its assets by omitting the infrastructure aspect from the report it submitted to Ketraco in February 2018.
Afriscan says it gave Ketraco an offer of US $4m as advance compensation, which the state firm allegedly ignored.
May 2018
Kenya strikes deal to defer US $10m monthly fine for Lake Turkana wind power delay
Kenya has struck a deal with Lake Turkana Wind Power to defer the monthly fine of US $10m as a penalty for delaying connecting the wind power to the national grid.
The wind farm which has already fined Kenya US $50.7m, held talks with the government and reached a consensus of suspending the penalty until September 1st to facilitate the completion of the transmission line project.
The delays from the government side were caused by a closure of a major contractor and late landowners’ compensation. This in turn led to delays in the construction of Kenya has s 428-kilometer power line, hampering electricity evacuation from the northern town of Marsabit to the Suswa substation in Narok, the country’s main interchange for power coming from different sources
“We as the government, the power transmission line financiers, and the Lake Turkana Wind Power have a new contractor on site as the former one disappeared and we have put all government agencies on high alert to facilitate its fast-tracking to beat the August 31st deadline, ”said Mr. Charles Keter, the Energy Cabinet Secretary.
The new contractors are NARI Group and Power China Guizhou Engineering Company.
Consumer Relief
The deal is a relief to consumers bearing a record of electricity prices following the use of expensive diesel generators due to bad weather which has affected the hydropower industry. Homes consuming 200 units of power paid a record high of US $42 this year, up from an average of US $ 37 year last year and US $30 in 2013.
On completion, the wind farm will provide 310MW of reliable, low-cost energy to Kenya’s national grid, approximately 15% of the country’s installed capacity; which will be bought at a fixed price by Kenya Power over a 20-year period in accordance with the Power Purchase Agreement.
Jun 2018
Lake Turkana wind power project to connect to grid by September
The Lake Turkana wind power project is expected to be connected to the national grid by September following the handing over to a Chinese contractor to set up the remaining section of high voltage wires for evacuation of the green energy.
The wind farm which has a capacity of 310MW was supposed to connect the first 50MW into the grid in October 2016 and the whole capacity bay last July. However, the project was delayed to challenges that faced Spanish companies who were the initial contractors, forcing the government to resort to another contractor, the Chinese who committed to completing the project within three months.
Project delay
“Most Spanish companies had difficulties. They went under and could not manage to source materials to complete the project. As a country, we are safe and on course. We believe by September, we will have power from wind,” said Pavel Oimeke, Energy Regulatory Commission Director-General.
Mr. Oimeke added that the power line linking the 310MW wind power plant to the national grid was 70 %complete, with the remaining work being putting up high voltage cables. He also assured consumers they will not pay US $10m on monthly electricity bills should the country fail to connect the wind power to the national grid.
“We are not paying any money to the project owners. There was money that was supposed to be paid to them, but we have agreed between the Kenyan government and project owners that part of the money will be loaded for a period of six years,” said Mr. Oimeke.
The power project which was allocated US $56m is expected to be completed by end of August and once completed clean and affordable power will be distributed to consumers.
Sep 2018
Kenya set to launch Lake Turkana Wind Power plant
Kenya is set to launch the Lake Turkana Wind Power Plant at the end of this month after an 18-month delay. Energy Cabinet Secretary Charles Keter confirmed the statement while giving the final simulation of the project at the power generation site ahead of the commissioning of the plant by President Uhuru Kenyatta.
The US $278m wind power project whose contract was awarded to a consortium of two Chinese firms – NARI Group Corporation and Power China Guizhou Engineering Company will add an additional 300MW to the national grid following the completion of a 400KV transmission line.
Reduced Power tariffs
The Energy CS said that the power plant will result in a reduction in power tariffs once the full evacuation of power from the wind farm begins.
“The completion of this project together with the 55MW we are expecting from the Garissa solar plant means we will be running less diesel even as the fuel cost charge will go up because of the new VAT on fuel,” said Mr.Charles.
Project delay
Mr. Charles further explained that the project delays affected the total cost of construction and the US $57m penalty from the Lake Turkana Wind Farm in Marsabit County for failing to complete the transmission line linking the plant to the national grid in time.
“The 428-kilometer power transmission line was initially supposed to cost Sh15 billion but the Government had to engage a new contractor after Spanish firm Isolux Corsan went bankrupt. Following the line delay, the Government had up to September 1 to complete the line or pay damages of US $10m a month to Lake Turkana Wind Company thereafter,” he said.
Energy CS Charles Keter however did not say whether taxpayers would be subject to another penalty this month given the lapse of the deadline.
Oct 2018
Kenya’s Lake Turkana Wind farm to be connected to the national grid
The 310MW Lake Turkana wind farm project in Kenya is set to be connected to the national grid by end of October this year after the finished testing of all the wind turbines to ensure they are functioning well.
Mugo Kibati, chairman of Lake Turkana Wind Power (LTWP) confirmed the reports and said that barring any unforeseen circumstances, all the 365 wind turbines will be supplying power to the national grid.
The chairman pointed out that once the project is successfully completed, it will showcase Kenya as a safe and reliable investment destination.
Also Read: Lake Turkana wind power project to connect to grid by September
Construction of the mega wind power farm was completed in January but could not produce power since the Spanish firm contracted to develop the transmission line and filed for bankruptcy. However, two Chinese firms took over the construction of the 428 km electricity transmission line to evacuate the power and completed the infrastructure in August this year.
LTWP has signed a 20-year power purchase agreement with the country’s sole power distributor Kenya Power and Lighting Company over a 20-year period in accordance with the Power Purchase Agreement.
The project proponent is the LTWP consortium comprising KP&P Africa B.V and Aldwych International as co-developers, Investment Fund for Developing Countries, Vestas Eastern Africa Limited, Finnish Fund for Industrial Cooperation Ltd, KLP Norfund Investments AS, and Sandpiper.
Feb 2019
Lake Turkana wind firm to break even in 2024
The Lake Turkana Wind Power (LTWP) firm has set a target to break even in 2024, about 10 years since the start of the project. This is according to the firm’s Executive director Rizwan Fazal.
Rizwan Fazal pointed out that the project, which began supplying electricity to Kenya Power in September 2018, shall take one decade to break even because of the kind of work that had to be done before power evacuation started.
“We have to wait. Mega projects are designed for a long period of time, it is impossible to build and start getting your money back just immediately after commissioning. We need a long-term horizon, which is five more years.” said Mr. Rizwan Fazal.
Also Read: Extension project for US $2b Hwange Power Station begins
Turnover breakdown
LTWP will trade the energy at US $9.64 per kilowatt hour (kWh) for the first six years and then shift to US $8.69 per kWh. This is meant to recover a US $92m balance as a penalty on the government for delaying the construction of the transmission line.
The project was built through a complex financing arrangement where out of the total project cost of US $71m and US $54m was sourced from a consortium of senior and subordinated lenders.
The debt will be paid twice every year – in March and September – and the last payment shall be made in 2024 according to Rizwan Fazal. This amounts to approximately US $85m) in repayment per annum.
Mr. Fazal also said that they signed a 15-year service agreement with a Danish firm, called Vestas. The agreement mandates the latter to design, manufacture, install, and service wind turbines and this shall cost 18% of LTWP’s total yield.
“The remaining amount of the turnover, after debt repayment and rewarding Vestas, shall be used to pay 500 personnel, maintain 208 kilometers of road, and undertake community projects” he concluded.
There is a possibility of the firm renegotiating with Kenya Power to extend the PPA if necessary after the technology becomes obsolete.
July 2019
Largest wind farm in Africa to be commissioned
Kenya is set to commission Lake Turkana Wind Power (LTWP) in Marsabit County, which is the largest wind farm in Africa by President Uhuru Kenyatta.
Construction of the mega wind power farm was completed last year but could not produce power since the Spanish firm contracted to develop the transmission line and filed for bankruptcy. However, two Chinese firms took over the construction of the 428 km electricity transmission line to evacuate the power and completed the infrastructure in August this year.
Lake Turkana Wind Power
The wind farm has an installed capacity of 310MW of clean, reliable, low-cost energy and has 365 wind turbines with a capacity of 850kW each. The project went ahead and was connected to the national grid in October last year after tests on the wind turbines were done after which it was handed to the power transmission line that evacuates power from the plant to the grid in Suswa, Narok County
LTWP signed a 20-year power purchase agreement with the country’s sole power distributor Kenya Power and Lighting Company over a 20-year period in accordance with the Power Purchase Agreement.
The project proponent is the LTWP consortium comprising KP&P Africa B.V and Aldwych International as co-developers, Investment Fund for Developing Countries, Vestas Eastern Africa Limited, Finnish Fund for Industrial Cooperation Ltd, KLP Norfund Investments AS, and Sandpiper.
The wind farm project is a major boost to the country’s international commitments to lower greenhouse gas emissions. Globally, Kenya is celebrated as one of the leading countries in the world with an energy mix dominated by renewable sources, especially geothermal, a technology in which our country has become a continental center of excellence. According to the ministry of energy, there was an installed capacity of 2,712 Megawatts with the country consuming a maximum of 1,860MW leaving a surplus of about 900MW.
Feb 2020
Google cancels plans to buy into Kenya’s Lake Turkana wind power farm
American technology giant Google has canceled plans to buy a 12.5% stake in Lake Turkana Wind Power (LTWP), Kenya Africa’s largest wind farm which was officially commissioned last July. Denmark-based firm, Vestas, recently disclosed that Google had ended the quest to buy its stake in LTWP after delays in the project.
Vestas explained that the 310MW Lake Turkana wind farm was initially set for completion in 2017, after which Google committed to buying the stake from the company (Vestas). However, the delays led to Google canceling the agreement last year. “Due to delays relating primarily to the transmission line, Vesta’s agreement with Google was canceled in 2019,” said Vestas.
Launching delays
The wind farm was ready for launch in 2017 but remained idle due to delays in installing transmission lines needed to get clean power to the national grid and customers. The 428km power line from Loiyangalani in northern Kenya to Suswa in Narok County was set to be completed by October 2016 but demands compensation from landowners along the route and other issues delayed it.
The line was further delayed after a Spanish firm contracted to build the line went under. Kenya then tapped a Chinese company to complete it. The Lake Turkana wind farm is expected to provide 15% of Kenya’s total electricity needs.
Jan 2021
Partnership for optimization of production of Lake Turkana wind farm
Lake Turkana Wind Power (LTWP), the developer of Lake Turkana wind farm- the single biggest operating wind farm in Africa, located in the Loiyangalani District, Marsabit County, Kenya-has entered into a partnership with Clir Renewables, a software service company in the renewable energy industry.
This partnership is focused on ensuring that the wind farm is able to take full advantage of this optimal resource, and, ultimately deliver consistent, high-yield returns for its investors as well as help the East African country to meet the growing demand for electricity with 100% renewable generation, consequently bringing down both national emissions and electricity costs.
The mandate of Clir Renewables
According to the partnership agreement, Clir will analyze data from each of Lake Turkana’s 365 turbines in the context of available resources, geospatial features, and nearby turbines.
Also Read: 100MW Assela wind farm to be constructed in Ethiopia
Through its machine learning-driven analysis, the software company will be able to see through the ‘noise’ of resource fluctuation and identify any instances of underperformance and their causes, providing LTWP with the insights necessary to increase annual energy production, monitor asset health, and manage technical financial risk.
The Clir’s team will further use this analysis to compare individual asset performance at a project, portfolio, and industry level, with insights shared with all project stakeholders via its reporting function.
Making sure that the project produces beyond expectations
Wellington Otieno, the chief technical officer at LTWP said that their aim is to make sure that this project produces beyond expectations.
“With Clir, our team of local technicians will be supported with the most up-to-date digital tools and analytics to target operations and maintenance and cut unnecessary asset downtime and this will enable us to supply Kenya with consistent, low-priced, green energy.
We are pioneering wind energy generation at scale in the African continent, and we look forward to working with Clir to fully optimize performance and show the rest of the continent, and the world as a whole, what green energy possibilities there are here.
Our hope is that LTWP will inspire many more wind energy farms in Africa as we work towards protecting our environment,” concluded Wellington Otieno.
Jan 2023
Chinese firms get US $ 96m Lake Turkana Wind Power line tender
A consortium of Chinese companies has been awarded a US $96m contract to complete the transmission line linking Lake Turkana Wind Power to the national grid by August 31st, 2018; following the termination of a Spanish firm’s contract last year,
The firms, NARI Group Corporation and Power China Guizhou Engineering Company, have committed to pay a fine of US $10m per month should they fail to meet the August 31st deadline.
The 428km power line is 70% complete; this is according to Kenya Electricity Transmission Company (Ketraco) which Tuesday signed the contract with the Chinese companies. It had stopped following the termination of the contract with Spanish firm Isolux, in August last year. It had been put under receivership over debt and liquidity challenges.
The line will evacuate the wind electricity from the Northern town of Marsabit to the Suswa substation in Narok, the country’s main interchange for power from different sources. The developers of the Lake Turkana Wind Power have already fined Kenya US $57m for the delays of the high-voltage line.
Further delays
According to the energy minister, further delays beyond June would attract a US $10m fine monthly to be absorbed by taxpayers through their power bills. Failure to connect the wind farm to the national grid had left the developers stranded with power, amid pressing cash needs such as loan repayment.
Ready for launch
According to Danish wind turbine maker Vestas Wind Systems, the supplier of the wind farm’s 365 turbines, the farm was ready for launch. However, it will be idle until the government installs the transmission line.
Construction of the power line started in November 2015 but was delayed by landowners’ compensation demands and last year’s termination of the Isolux contract.
The wind farm, the largest in Africa, with a capacity of 310MW, enough to power up to one million homes, was supposed to inject the first 50MW into the grid in October 2016 and the whole capacity by last July.
The Treasury allocated US $ 57m in a September supplementary budget to be wired to Lake Turkana for last year’s delay and the fines will be recovered this year from consumers via monthly bills.
The Chinese contractors have been involved in other local works in Olkaria steam fields, Naivasha.
