For the development of Samburu Solar and Transmara Solar projects in Kenya, InfraCo Africa has signed $ 2.2 million convertible loan agreements with energy developer Gigawatt Global.
Each with a capacity of 10MWAC, the sister facilities will generate clean, reliable electricity in some of the poorest counties in the country.
In the development of two solar power plants in Kenya, the government is investing KES220 million (£ 1.7 m). The Foreign and Commonwealth Office shall grant the funding for solar facilities in Samburu and Transmara, through InfraCo Africa, a private infrastructure development group (PIDG) company.
The two solar plants each with a capacity of 10MWAC will aid the poorest regions in the country with clean and reliable electricity.
The new projects will support the ambition of the Kenyan government to achieve universal access to electricity by 2022.
According to Mohammed Elmi, Chief Administrative Secretary, Ministry of Environment & Forests of Kenya, 70% of Kenya’s installed electricity capacity comes from renewable energy and could be replicated in Africa.
InfraCo Africa’s funding will enable these projects to complete development activities and secure the construction funding needed.
InfraCo Africa is part of the Private Infrastructure Development Group (PIDG), funded by the UK, Netherlands and Switzerland governments. Building on their experience in Rwanda, both projects will be developed in partnership with Gigawatt Global.
“Gigawatt Global’s pioneering mission in Kenya to target last-mile generation development is bolstered by its partnership with InfraCo Africa,” said the company’s CEO, Josef Abramowitz.
“Through the Samburu and Transmara projects, this alliance will demonstrate how solar can act as an essential cornerstone to empower rural and under-served populations,” Abramowitz added.
To date, either large – scale plants or local mini-grids / solar systems have been focused on private sector investment in Kenyan solar. Work is also underway to explore the potential of participating in a local currency purchase agreement (PPA) pilot for one or both of the solar projects.
“Recognising the challenges faced by the Kenyan power sector, we are excited to be pioneering 10MW solar IPPs and demonstrating the benefits of strategically locating small-scale generation whilst facilitating economic development within poor and under-served counties,” said Alix Graham, business development manager, InfraCo Africa.