CDC, a development finance institution of the UK government, has partnered with Globeleq, an independent power producer and developer in Africa, to provide $66 million debt financing to Malindi Solar Group.
The financing will be utilized for the development of a 52 MW solar photovoltaic power project in South-East Kenya.
The long-term financing has been made available for a period of 16 years and it is expected to improve the power situation in Malindi region, which relies on expensive thermal power and suffers from widespread load shedding.
“Power infrastructure is vital for Africa’s economic growth and for the millions of individuals, families and businesses who struggle to access the electricity they need. Our investment will bring clean energy and jobs to a region of Kenya that struggles to reach its potential because of energy shortages,” said Nick O’Donohoe, CEO of CDC in a media statement.
Kenya’s per capita electricity consumption is well below the Sub-Saharan average. It is 44 percent below the level expected for the corresponding per capita GDP. Hence, the power produced from the Malindi project will be consumed locally and create employment opportunities.
Malindi is first of the four utility-scale solar power plants in Kenya which await the beginning of construction. Globeleq will be 90 percent shareholder of the Malindi project and its partner AEDC will have the remaining 10 percent.
Paul Hanrahan, CEO of Globeleq said, “Obtaining CDC’s support to help the project move forward is essential in order to supply 52 MWp of clean, renewable power to the grid and support the Kenyan government’s targets to build new generation.”
Recently, the World Bank also approved $180 million in assistance to Kenya to strengthen the financial health of the Kenya Electricity Generation Company Limited (KenGen) and improve private sector financing in the energy sector.
Image credit: Flickr
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer