The Kipeto wind farm is a 100 MW wind power project situated within Kajiado county of southwestern Kenya. Construction on the wind energy project began in the third quarter of 2018 and it was completed after about 22 months.
The Kipeto wind farm project became the second largest in Kenya after the Lake Turkana Wind Power Project. It was a US$323 million project which involved building an on-site substation and installing 60 wind turbines.
The scope of the project also covered the installation of generators and transformers and the laying of a 220 kV high-voltage line from the site to the Isinya substation.
The joint venture (JV) known as Kipeto Energy Ltd (KEL) was responsible for building the Kipeto Wind farm project. The JV partners comprised Africa Infrastructure Investment Managers, Craftskills Wind Energy International Ltd, International Finance Corporation, and the Maasai community of Kipeto.
Reported in 2014
World Bank to invest US$ 20m in a new wind power project in Kenya
The World Bank, through its private arm International Finance Corporation (IFC) will be investing US$ 20m in equity into a wind power project in Kajiado County.
The funds will be channeled towards the Kipeto Wind Power Project which is going to be developed on a 70-kilometer square piece of land South-west of Nairobi. The project will be in the Esilanke area currently being utilized for agricultural purposes. 100MW of electricity is expected to be generated from the plant. Kipeto will then sell this power to Kenya Power and Lighting Company at a feed-in tariff of US$ 12 cents/KWh under a 20-year PPA.
The implementer of the project is Kipeto Energy Limited (KEL), initially founded by Kenya-based Craftskills Wind Energy International Limited. KEL is majority-owned by US-based General Electric (GE) with the World Bank Group’s investment arm IFC and a community trust as its other shareholders.
KEL is part of the nation’s vision 2030 where the government aims at adding 5000MW to the national grid. General Electric will provide the wind turbines needed for this project. The total cost of the project has been set at US$ 316m. General Electric will construct a new on-site substation and a 66 kV line to transmit the generated electricity to the national power grid.
Reported in 2015
Construction of Kipeto wind farm to supply Kenya power
Kenya Power has signed an agreement with Kipeto Power that will see the generation of electricity in Oldonyo Narok, Kajiado. The construction of the Kipeto wind farm to supply Kenya’s power with 100MW will greatly boost Kenya’s supply.
Kipeto has successfully received US$ 233m in 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 utilizing renewable power that is cost-effective and environmentally friendly,” said the acting Secretary for Energy and Petroleum, Henry Rotich.
The construction of the 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 percent of the country’s energy. Wind energy presently stands at a negligible 0.4 percent 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.
Reported in 2016
Kenya power signs 100MW PPA with Kipeto wind farm
The Kipeto wind project is now one step closer to delivering more clean power to Kenyans after announcing that it has officially signed a 20–year power purchase agreement (PPA) with Kenya Power. This is a major highlight in the development of the 100MW wind farm project.
Kenya’s electricity connection has almost doubled in the past four years to 46%. The Kipeto wind project will be a chief contributor to the government’s plan to supply 70% of the homes with electricity by 2017 and global access come 2020.
The project consists of the construction, financing, operation, and maintenance of the Greenfield wind farm situated in Kajiado County. Once concluded, the 100 MW, grid-connected wind energy facility will be one of the first utility-scale wind farms to come online in the country.
The Kipeto wind project is being developed in a joint venture with one of US President Barrack Obama’s Power Africa private-sector associates and fund adviser to African Infrastructure Investment Fund 2, African Infrastructure Investment Managers (AIIM), together with Kenyan independent power project developer Craftskills Wind Energy International and the International Finance Corporation through its universal infrastructure project development fund, IFC Infraventures.
AIIM, Craftskills, and IFC Infraventures will offer equity funding for the scheme. The Overseas Private Investment Corporation, the US government’s development finance institution, is the key lender at US $233m.
China Machinery Engineering Corporation is the engineering, procurement, and construction supplier. Multinational conglomerate corporation General Electric is to provide sixty GE 1.7-103 wind turbines, offering better efficiency at low wind speeds, and will service the plant over a 15-year phase.
The 100MW wind project is part of the country’s 2030 vision to increase generating capacity to the grid so as to meet the amplified energy demand in the nation. The project is expected to attain financial close and start construction by the end of the year.
Aug 2018
Kenya to receive US $232m investment for wind power project
Kenya’s President Uhuru Kenyatta signed a US $232m deal with two US companies; the US Overseas Private Investment Corporation (OPIC) and Kipeto Wind Energy Company that will see the construction of and operation of a 100MW grid-connected wind power plant.
According to President Kenyatta, the plant which will be located south of Nairobi will provide a more reliable source of energy to the national grid and support the US Power Africa Initiative to double the number of people in Sub-Saharan Africa with access to electric power.
“This has presented major opportunities for local and foreign investors in areas such as agro-processing, textiles and leather, the maritime sector, construction, iron and steel, and oil and gas,” the Head of State informed the meeting that was attended by US Commerce Secretary Wilbur Ross and over 20 top executives of leading American companies
Also Read: Nine renewable energy projects set for construction in South Africa
Appeal for more investors
The president said Kenya intends to increase the sector’s contribution from 8.4 percent to 15 percent by 2022. He further assured the US business executives of his administration’s commitment to remove any hurdle that could impede their operations in Kenya.
“Kenya is open for business and all we want to do is package our partnership in a way that is mutually beneficial to you as a private sector and the people of Kenya,” President Kenyatta said.
Big Four agenda
President Kenyatta also invited more US investors to set shop in Kenya to benefit from the opportunities created by the Big Four development blueprint projects. He added that the Big Four agenda projects which are pegged on boosting manufacturing to create jobs, food security, provision of affordable housing, and universal healthcare coverage, present major opportunities for local and foreign investors.
“Given our long and well-established relationship, we can do more together and I invite the US companies to walk with us on the ‘Big Four’ journey,” said the President.
Additionally, the US committed another US $5m financial deal to expand the distribution of the network of Twiga Foods and improve food security and agricultural wages in Kenya.
Oct 2018
Kenya launches its second largest wind power project
Kenya has officially launched its second largest wind farm, the Kipeto Wind Power project by Overseas Private Investment Corporation (OPIC) – the US government’s development finance institution and Actis.
The African Trade Insurance Agency (ATI), the Pan-African trade and investment insurer, said it has reached a deal to provide a 10-year standby revolving and on-demand insurance cover for the wind power project to be put up at the base of Ngong Hills in Kajiado.
The emergency facility will cushion the project from short-term cash flow challenges arising from payment defaults for a maximum of six months by the near-monopoly Kenya Power for electricity supplied to the national grid.
“OPIC is proud to support the construction and operation of the Kipeto wind farm, which will add reliable energy to Kenya’s national grid,” said OPIC President and Chief Executive Officer Ray W. Washburne.
Kipeto Wind Power project
The recent launch of the Kipeto Project, which signed a 20-year power purchase agreement with Kenya Power in July 2015 is expected to significantly have a lot of impact on Kenya’s renewable wind energy ambitions, which is aligned with the government’s Vision 2030 plan to ramp up renewables.
“By helping meet increasing power demand and delivering positive ripple effects to nearly every sector of the economy, this project – which also supports the mission of Power Africa – will be a highly impactful catalyst of economic growth and regional stability,” Washburne added.
Located southwest of Nairobi on a 70km2 area of land, the energy generated from the Kipeto wind farm will be sold exclusively to the national off-taker, Kenya Power and Lighting Company (KPLC), under a 20-year power purchase agreement.
The project is the second largest in the country after the Lake Turkana Wind Power Project, which WorleyParsons provided the overall project management, engineering review, and construction management services for.
Kipeto’s pivotal role in the government’s energy strategy was on full display during President Kenyatta’s meeting this past August with President Trump in Washington. The project will contribute an additional 100MW of clean power once completed.
Reported in 2020
Major construction works at the Kipeto wind power project in Kenya complete
The major construction activities at the Kipeto Wind power project located at Esilanke area on the foothills of Ngong Hills in Kajiado county of Kenya have been completed following the completion of the installation of all the 60 wind power turbine generators by the US multinational General Electric (GE).
This is a great milestone for the project as it puts the farm on track to be fully operational by the end of this current year, supplying Kenya Power and lighting company– the national electricity distributor and retailer- with less expensive, renewable energy enough to power at least 40,000 homes, under a 20-year power purchase agreement signed in 2015.
Also Read: Kenya to commence construction of Kaptis hydropower project
The Kipeto wind power plant is expected to have a capacity of 100MW and it will also be the second largest of its kind in the East African country after the Turkana Wind Power project.
The conception of the Kipeto wind power plant project
The Kipeto Wind Farm emerged as part of US President Barack Obama’s ‘Power Africa’ initiative, which sought to add 30,000 megawatts of clean energy in sub-Saharan Africa.
At the beginning of 2016, Kipeto Energy Plc, a special purpose vehicle for the development of the project founded by Craftskills Wind Energy together with the African Infrastructure Investment Managers (AIIM), International Finance Corporation (IFC), and Kipeto Local Community Trust, contracted China Machinery Engineering Corporation to perform engineering design, procurement and construction of the wind farm at a contract price of over US$ 212M.
In December 2018, Actis LLP acquired the equity interests of both the IFC and the AIIM to become the largest shareholder of the Kipeto wind power project.
Within the same period, the project reached financial closure and GE was contracted to supply 60 GE 1.7-103 wind turbines for the farm.
Reported in 2021
100MW Kipeto wind farm in Kenya connected to the national grid
The 100MW Kipeto wind farm in Kenya has successfully been connected to the national grid with the generation of power expected soon. Kipeto Energy Plc connected a 17km (220KV) high voltage transmission line, linking the facility to the national grid at the Isinya Substation, and signaling the start of the go-live process.
The project’s 60 GE 1.7-103 wind turbines, each capable of producing 1.7MW, will be switched on in stages as part of a gradual ramp-up process, with all commercial tests due to be concluded within the next few months.
According to Dr. Kenneth Namunje, chairman and director of Kipeto Energy Plc, with the assistance of KPLC and Ketraco, KEP is delighted that the final connection and energization sees the transmission line and associated equipment being handed over to KPLC for future care and operation. “I would like to thank the local community for their ongoing support of this project, which has been paramount from day one,” he said.
Robert Skjodt, CEO of BioTherm Energy said that construction of the Kipeto wind project was done to the highest standards with strong support from engineering and construction partners from Worley, China Machinery and Engineering Company, and GE, as well as the local community, to maintain strict safety protocols throughout construction.
“We are excited to be contributing to Kenya’s Vision 2030 goals and Big Four Agenda and demonstrating that solar and wind are cheaper sources of electricity than traditional fossil fuel-based power plants with a significant positive impact in the local communities,” he added.
Also Read: Lake Turkana Wind Power partners with Clir Renewables to optimize wind farm
Kipeto wind farm
Located in Kajiado county, Kipeto is Kenya’s second-largest wind power project. It has a 20-year Power Purchase Agreement with KPLC, and once it is at full capacity, Kipeto will generate 100MW of clean wind energy, providing power to approximately 250,000 households.
The Kipeto project reached a financial close in December 2018, marking the beginning of its two-year construction phase. The project is funded by equity from Actis-backed BioTherm Energy (88%) and Kenyan company Craftskills Ltd (12%) alongside senior debt from the US International Development Finance Corporation (DFC), the US Government’s development finance institution.
Reported in 2021
100MW Kipeto wind farm project in Kenya completed
The 100MW Kipeto wind farm project in Kenya has been completed. Pan-African developer BTE Renewables and Kenyan-owned renewable developer, Craftskills announced that all of the project’s 60 wind turbines are now producing power for the national grid.
Located in Kajiado County, Kipeto is Kenya’s second-largest wind power project with a 20-year Power Purchase Agreement with KPLC. It is part of former US President Barack Obama’s ‘Power Africa’ initiative, which sought to add 30,000MW of clean energy in sub-Saharan Africa.
The wind farm project reached a financial close in December of 2018, marking the beginning of its two-year construction phase. It was funded by equity from Actis-backed BioTherm Energy (88%) and Kenyan company Craftskills Ltd (12%) and a senior loan from the Development Finance Corporation (DFC), the development finance institution of the US government.
Equity interests
At the beginning of 2016, China Machinery Engineering Corporation was awarded the contract to perform engineering design, procurement, and construction of the wind farm at a contract price of over US $212m.
In December 2018, Actis LLP acquired the equity interests of both the International Finance Corporation (IFC) and the African Infrastructure Investment Managers (AIIM) to become the largest shareholder of the Kipeto wind power project. Within the same period, the project reached financial closure and GE was contracted to supply the 60 wind turbines for the farm. The energy farm will provide power to approximately 250,000 households.
“Today is a proud day for Kipeto and the local community of Kajiado as we enter into commercial operation after a 12-year journey. I am very grateful for the ongoing support of the community of Kajiado, which has been paramount for our success.
Now we are providing clean and sustainable energy for the people of Kenya with the support of KPLC and Ketraco,” said Dr. Kenneth Namunje, Chairman and Director of Kipeto Energy Plc and also Director of Craftskills.
