HomeRegional NewsEast AfricaKPLC enters into 20 year PPA with Kipeto Energy

KPLC enters into 20 year PPA with Kipeto Energy

On Thursday, Kenya Power (KPLC) and Kipeto Energy Limited signed a Power Purchase Agreement (PPA) for a 100MW wind power project in Oldonyo Narok near Kiserian, Kajiado County.

The PPA states that Kipeto Energy will construct, own, operate and maintain the $320 million wind power project.

KPLC drives clean power expansion

The generated clean power will be supplied to the transmission and distribution company for a 20-year period, valid from the date of commercial operation.

Kenya Power Managing Director and Chief Executive Officer, Ben Chumo said: “The PPA is an important step forward in enabling the country meet its development goals in utilising renewable power that is cost effective and environmentally friendly.”

With renewable power accounting for more than 85% of the country’s energy mix, investment in wind energy generation is part of the country’s strategy of diversifying the 5,000MW additional generation capacity to ensure adequate power as well as reduce the overall cost of electricity.

Hon. Kenneth Marende, Chairman, Kenya Power Board of Directors, said: “This PPA provides Kipeto stakeholders the off take certainty needed to advance the project and provides Kenya Power with an important addition to their distribution source.”

Renewable energy data

According to a statement released by KPLC, this project will be one of the largest committed wind power projects in the region and second to the ongoing 300MW Lake Turkana Wind Project.

Official data shows that the installed generation capacity stands at 2,341MW, which includes 821MW of hydro and 632MW of geothermal.

Wind energy currently accounts for just 0.4% in the country’s energy mix. This is expected to change with the introduction of wind power from Lake Turkana and Kipeto projects, which are expected to add a total of 400MW.

The off-grid system installed capacity in 2015 was 28MW, consisting of diesel, solar and wind power plants in areas far away from the national grid.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.