A Kenyan Independent Power Producer (IPP), Kenergy Renewables, has signed a 20-year power supply contract with Kenya’s national distributor, Kenya Power.
According to Reuters, the IPP will sell clean power generated from a 40MW solar power plant that is currently being developed. Read more: French firm signs contract for a 50MW PV plant
The power will be sold at $0.08 per kilowatt hour, the firm’s chief executive, Khilna Dodhia, said in an interview on Thursday.
The company requires a letter of support from the government, which will provide clarity on when the plant will become operational, she told Reuters.
“Once you secure a PPA (power purchase agreement) that’s a sign you are on your way. But lenders require a letter of support from government to green light funding,” she said.
Dodhia said that the project cost is estimated at around $60 to $70 million; however, she did not confirm an exact cost.
Kenergy Renewables has already invested more than $2 million in the early stages of development for the Rumuruti project in Laikipia County in northern Kenya, Dodhia said.