UK’s development finance institution is planning to sink $66 million to build a 52 MWp solar park in Kenya

Malindi, Kenya.  (TripAdvisor)
  • The Commonwealth Development Corporation (CDC Group) is planning to invest $66m in the Malindi solar project.
  • The project will be led by Malindi Solar Group, a company created ad hoc by Globeleq.
  • KPLC has already signed a 20-year power purchase agreement (PPA) with Globeleq.

United Kingdom’s development finance institution is set to build a solar project worth Sh6.6 billion in Malindi, a coastal town in southeastern Kenya.

The Commonwealth Development Corporation (CDC Group) is planning to invest $66m in the Malindi solar project. British Prime Minister of Foreign Affairs, Jeremy Hunt revealed the plans during his tour in Kenya.

Mr. Hunt announced a series of investments and said that the British government’s development finance agency will contribute US $50m while its partner, Globeleg, an independent power producer (IPP) the remaining $16m.

The funds will be a loan refundable over 16 years.

The project will be led by Malindi Solar Group, a company created ad hoc by Globeleq. The latter, 70% owned by CDC and 30% by Norfund, will build a 52 MWp solar park in Malindi.

The energy produced will be consumed by locals as the region is still facing load shedding. In Kenya solar utilization is mainly for photovoltaic (PV) systems, drying and water heating. The solar PV systems are used mainly for telecommunication, cathodic protection of pipelines, lighting and water pumping.

While a vibrant solar energy market has developed in Kenya over the years there still remains some barriers affecting full exploitation of solar energy resource such as high initial capital costs, low awareness of the potential opportunities and economic benefits offered by solar technologies, and a lack of adherence to system standards by suppliers.

The sale of electricity from the solar park will be made by the Kenya Power and Lighting Company (KPLC), which provides public electricity service in Kenya. KPLC has already signed a 20-year power purchase agreement (PPA) with Globeleq.

Construction of the solar project will also strengthens Globeleq’s presence in East Africa.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Sonko’s reaction as daughter Sandra Mbuvi goes international

Sonko’s reaction as daughter Sandra Mbuvi goes international

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Eliud Kipchoge's special Sh20,000 earphones he can't live without

Eliud Kipchoge's special Sh20,000 earphones he can't live without

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

Davido and Chioma spotted together for the first time since rumoured breakup

Davido and Chioma spotted together for the first time since rumoured breakup

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

Diana Marua in jubilation as she celebrates new milestone [Photo]

Diana Marua in jubilation as she celebrates new milestone [Photo]

5 things you should never do to please a woman

5 things you should never do to please a woman