African Development Bank Sanctions $18.17 Million Loan for 50 MW Solar Project in Kenya

The African Development Bank (AfDB) has announced that it has sanctioned a senior loan of $18.17 million for the development of 50 MW Kopere solar power project in Nandi County, Kenya.

The project also includes the construction of a 33/132 kV substation, and a 1.8 km transmission line to evacuate the power generated to the national grid.

“This project could potentially be Kenya’s first utility-scale solar PV project under the Feed in-Tariff (FiT) policy. We are confident that the provision of long-term and concessional financing to support the project with terms that are unavailable from commercial sources will have an important demonstration effect in attracting more investors to engage with Kenya’s vast solar opportunities”, said Amadou Hott, Vice-President of AfDB for Power, Energy, Climate Change and Green Growth.

It is expected that the project will generate around 106 GWh per year and supply electricity to 600,000 households. It is also anticipated to save 1,081 kilo-ton equal of carbon dioxide in green house gas emissions per annum. It will help attain Kenya’s Intended Nationally Determined Contributions (INDC) for climate durable growth.

Wale Shonibare, AfDB’s director for Energy Financial Solutions, Policy and Regulation said, “By providing access to quality energy at a cost below the current generation costs in Kenya, the Kopere project will diversify Kenya’s energy mix, and ultimately contribute to reduced dependence on fossil fuels.”

The bank is also in the course of securing a $11.6 million concessional loan from the Climate Investment Fund’s Scaling-up Renewable Energy Program (SREP).

The solar power project is owned by Voltalia, an global renewable energy company listed on the Paris Stock Exchange.

Africa has newly become the focus of renewable energy investments and AfDB has been on the front position. Recently, AfDB also permitted a senior loan of ZAR 3 billion ($220.3 million) to the 100 MW Redstone concentrated solar power project. The project is situated in the Humansrus Solar Park, in the Northern Cape Province of South Africa and is expected to generate 466 GWh/year.

Solar PV | News published on 06/12/2018 by Moulin

 
 
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