Kipeto wind firm has finalt secured a Power Purchase Agreement (PPA) with Kenya Power and Lighting Company. Under the PPA, the firm will construct, own, operate and maintain the project, with Kenya Power purchasing the power generated.
Financing for the project was obtained from the Overseas Private Investment Corporation (OPIC), the development fund of the United States government.Kipeto has already received $233 million (Sh23.3 billion)
OPIC President and CEO, Elizabeth Littlefield, said “financial support to Kipeto is a significant step in OPIC’s pledge to US President Barack Obama’s Power Africa Initiative.”
The terms of the PPA however were not readily released. However, electricity from Lake Turkana Wind Power, set to come on-stream by 2016, will be priced at 8.42 US cents per unit (Sh8.3).
Kenya Electricity Generating Company (KenGen) sells its hydropower to Kenya Power at $0.03 being cheapest while Thermal generators are the most expensive at ($0.19).
“This 100 MW PPA provides the Kipeto stakeholders the off take certainty needed to advance the project and provides Kenya Power with an important addition to their generation plan,” said Joseph Njoroge, Principal Secretary for Energy and Petroleum.