Nairobi, Kenya --- ESI-AFRICA.COM --- 20 December 2011 - The USD$900 million Lake Turkana Wind Power consortium (LWTP) "’ the largest single private investment in Kenya's history "’ will earn US$260 million over its lifespan, the sponsors have said.
Reporting this, “Business Daily” says the plant has been registered with the United Nations Framework Convention and the income will be shared with the Kenyan government and the community.
The project is expected to start producing 50 megawatts (MW) of electricity in the last quarter of 2013 and to reach full production capacity of 300MW three years later.
“Between50MW and 90MW of capacity is to be commissioned by December 2013,” the officials said in a statement.
The wind project will add 17% of clean power to the national grid, taking advantage of natural wind resource in northwest Kenya near Lake Turkana to meet up to 17 per cent of Kenya's current total installed power capacity of 1,394MW.
At 7.52 cents per kilowatt hour, the consortium tariff provides a low and consistent power price.
“If the wind is less than predicted then only LTWP suffers as Kenya Power only pays for the power produced at a fixed price per kWh,” said the officials.
It will be approximately 60% cheaper than thermal power plants, making it the lowest cost power generation option along with geothermal power.
The wind project is expected to reduce dependence on unreliable hydro and on expensive, unpredictably priced fossil fuel-based power generation.
Its joint development partners are KP&P BV Africa, Aldwych International Limited, Industrial Development Corporation of South Africa (IDC), Wind Power A.S. (Vestas), Norwegian Investment Fund for Developing Countries (Norfund) and Industrialisaeringsfonen for Udviklingslandene (IFU) Denmark.
The lead arranger of the debt financing is the African Development Bank with Standard Bank of London and Nedbank Capital of South Africa as co-arrangers. LTWP will build a wind farm consisting of 353 wind turbines, each with a capacity of 850 KW.