Kenya’s 1st Utility Scale IPP Solar Proj to Kick-off Construction Post Financial Close

Meanwhile, it is expected that the plant will reach commercial operation in mid-2020 as the construction work likely to take around twelve months.

With an aim to power Africa’s growth trajectory, Globeleq is mulling to begin the construction of Kenya’s one of the first IPP-owned utility scale solar power plants post the financial close.

This 40 MWAC (52 MW p) Malindi Solar project is located about 120 kms north-east of Mombasa in Langobaya of Malindi district in Kilifi County.

Further, the company will sell power generated from USD 69 million project via a 20-year agreement signed with Kenya Power, which is the national distribution company.

Commenting on investment in Malindi project, Globeleq, CEO, Paul Hanrahan said, “The attractive investment climate combined with strong local community support sets the stage for this important project as well as future investments in Kenya. We are extremely pleased to be making this investment into the Kenyan energy sector.”

The company said in a statement that it has been working with the project originator, Africa Energy Development Corporation (AEDC) and its partner IDEA Power in order to bring the project to construction stage by providing equity, project development and construction management experience.

“AEDC is excited to have reached this significant milestone with the Malindi project. Working with our partners, we are very pleased to contribute to sustainable economic development in Kenya and look forward to continued growth in Sub Saharan Africa,” said Zohrab Mawani, Director, Africa Energy Development Corporation (AEDC).

Moreover, AEDC will retain 10 per cent of the ownership in Malindi project. As the mandated lead arranger for financing this project, UK’s development finance institution, CDC has provided USD 52 million of debt financing including USD 20 million from a German development finance institution DEG.

Besides, global EPC player Sterling and Wilson Solar will commence civil and electrical construction works of the project.

The company, which will oversee construction and operations of the plant, further expects that during construction it will require around 250 workers and it will hire most of them from the local community.

Meanwhile, it is expected that the plant will reach commercial operation in mid-2020 as the construction work likely to take around twelve months.