Nairobi, Kenya, June 3, 2016— Kipeto
Energy Ltd., an IFC client and partner, today signed a 20-year Power Purchase
Agreement with Kenya Power that will increase supply of clean, renewable
energy supporting the country’s economic growth. Under the agreement,
Kipeto’s 100MW wind farm will sell its power to the national distributor
at stable costs in a market where demand for electricity is rising at 7
The new agreement marks a major milestone
for Kipeto’s large wind farm project, which is expected to reach financial
close and commence construction in the second half of 2016. Located 70
kilometers southwest of Nairobi in Kajidao County, it will be Kenya’s
second largest wind farm and the second privately financed wind energy
project. It is part of US President Obama’s ‘Power Africa’ initiative,
which aims to add 30,000 megawatts of renewable power capacity in Sub Saharan
Kipeto is being developed jointly by IFC’s
InfraVentures, which supports infrastructure projects in developing countries.
Other partners include African Infrastructure Investment Managers and Kenyan
company Craftskills Wind Energy International. The Overseas Private Investment
Corporation, the US Government’s development finance institution, is the
principal lender to the project. General Electric will supply 60 wind turbines
and will service the plant over a 15-year period.
Along with financing, IFC is advising Kipeto
management on best practices related to land, community and the environment.
Kipeto has established a community development trust, through which 5.0
percent of the wind farm’s dividends will be invested in health, education,
and other social projects to benefit Kajiado county residents. The trust
is the first of its kind in Kenya.
“Reliable, affordable energy is vital to
creating jobs and supporting economic growth in Kenya,” said Oumar Seydi,
IFC Director for Eastern and Southern Africa. “IFC supports pioneering
companies like Kipeto that are investing in renewable energy in Kenya while
benefiting the local community.”
The Kenyan government is expected to commission
more than 700 megawatts of renewable energy projects in the next three
years. IFC, a leader in renewable energy finance, is uniquely positioned
to help developing countries like Kenya transition to a low carbon future.
Over the past three years, IFC has financed $3.5 billion in renewable energy
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org