US $66m set to be invested in Kenya’s Malindi 52MW solar project

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The Commonwealth Development Corporation (CDC Group) is set to invest US $66m in Malindi solar project. British Prime Minister of Foreign Affairs, Jeremy Hunt revealed the plans during his tour in Kenya.

He announced a series of investments and said that the British government’s development finance agency will contribute US $50m while its partner, Globeleq, an independent power producer (IPP) the remaining US $16m. The funds will be a loan refundable over 16 years.

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Malindi solar project

The project will be led by Malindi Solar Group, a company created ad hoc by Globeleq. The latter, 70% owned by CDC and 30% by Nordfund, will build a 52 MWp solar park in Malindi, a coastal town in southeastern Kenya.

The energy produced will be consumed by locals as the region is still facing load shedding. The sale of electricity from the solar park will be made by the Kenya Power and Lighting Company (KPLC), which provides public electricity service in Kenya. The lighting company has signed a 20-year power purchase agreement (PPA) with Globeleq.

Construction of the solar project will also strengthens Globeleq’s presence in East Africa. Meanwhile The British company is part of the consortium selected for the Aurora Sola 1 and 2 solar projects in Zambia.

It is estimated to produce 40 MW and both Both IPPs will sell the kW/h of electricity at US $0.045 to Zambia Electricity Supply Corporation (Zesco), the company responsible for the provision of electricity in Zambia.