A private Kenyan power firm has signed a 20-year deal to sell 40MW from its solar plant, once built, to the East African nation’s state-run distributor
Kenergy Renewables signed the agreement to sell the electricity to Kenya Power at US$0.08 per kWh, its chief executive Khilna Dodhia told Reuters.
The company requires a letter of support from the government, which will provide clarity on when the plant will become operational, she added.
“Once you secure a power purchase agreement (PPA) that’s a sign you are on your way. But lenders require a letter of support from government to green light funding.”
The total cost of the project is estimated to be around US$60mn.
Kenergy has already invested more than US$2mn in the early stages of development for the Rumuruti project in Laikipia County in northern Kenya.
Kenya has an installed generating capacity of 2,370MW and peak demand of about 1,770MW. It relies heavily on renewables such as geothermal and hydro power, according to reports.
