PRESS RELEASE
BEI/14/68
24 March 2014
European support for sub-Saharan Africa’s largest wind power project
confirmed
Europe’s long-term lending institution, the European Investment Bank has agreed to provide
EUR 200m (Ksh 23 billion) to support the Lake Turkana Wind Power project. The EUR 620
million (Ksh70 billion) scheme will transform supply of renewable energy in East Africa and
benefit from additional financial support from the European Union, through the EU-Africa
Infrastructure Trust Fund and a broad range of international investors.
As the largest single wind farm in sub-Saharan Africa the Lake Turkana scheme is expected to
generate around 20% of Kenya’s power and provide 300MW of reliable, low cost wind power to
the Kenya national grid. The project located in remote northern Kenya will be the largest ever
private investment in Kenya and include 365 wind turbines, each capable of generating 850 kW,
as well as associated power and road connections.
“Availability of affordable energy is essential for Africa and electricity from the Lake Turkana
Wind Power project will support economic growth across Kenya by helping to ensure power
supply during periods of peak demand. The European Investment Bank congratulates all those
involved in the project over recent years and is pleased to have worked alongside a wide range
of financial institution as the largest lender to the scheme. Our broad experience of large scale
renewable energy projects around the world has highlighted both energy and economic
benefits, and demonstrated how innovative schemes such as Lake Turkana can inspire further
schemes. Europe’s firm commitment to supporting long-term investment in Kenya is reflected in
nearly two-thirds of financial support being provided by European public and private investors
and the crucial role of the support of the EU-Africa Infrastructure Trust Fund in closing the deal.
Today is a milestone for the history of energy in Kenya and we look forward to the project
fulfilling high expectations once complete.” said Pim van Ballekom, European Investment Bank
Vice-President.
EU Ambassador, Lodewijk Briet, said: "Today is a historic display of how European private
finance, development investment and funding grants can combine to lead the way in building
infrastructure in sub-Saharan Africa. The European Union provided the final Euros 25 million to
close the package of investment support but it is the size of the support from European
companies and the European Investment Bank that have made this project a success.The
investment available from the European private sector provides immense opportunities for
Kenya and development in the wider region. Like many developing countries, Kenya faces
many infrastructure challenges - be it roads, energy or water - and I am delighted to say that the
Europe Union is providing large-scale support in all these areas."
Once the Lake Turkana Wind Power project is complete it is expected that Kenya will benefit
from fewer power shortages and electricity 60% cheaper than thermal power plants. The
scheme will reduce reliance on hydro that can face problems during the dry season and reduce
the need to import expensive, unpredictably priced fossil fuels.
The 162km2 site of the new wind farm in Marsabit County has been found to have some of the
most consistent winds in Africa. Daily temperature fluctuations and a valley between the Mt.
Kulal and Mt. Nyiru ranges that will help ensure more efficient electricity generation by the
project.
The European Investment Bank will provide EUR 200 million of senior debt. The European
Union through the EU-Africa Infrastructure Trust Fund will take a EUR 25 million preferred
equity share in the project to close a financing gap not covered by current or new investors.
Further financial support will also be provided by the African Development Bank, Dutch, French,
German, Finnish and Norwegian development finance institutions and commercial banks.
The site of the Lake Turkana Wind Power was selected following an extensive survey focusing
on environmental, social and sustainability, technology and commercial considerations,
including the remoteness of the area, the strength and stability of the winds, proven technology,
benign environmental setting, low population density, security, fresh water availability and road
access. To avoid bird contact with the turbines, the site is at least 9 km from the shore of Lake
Turkana and a 12 month ornithological study has been concluded and annual environmental
audits will be done for the entire wind farm operational period.
The Lake Turkana Wind Power consortium comprises KP&P Africa B.V. and Aldwych
International as co-developers, Industrial Fund for Developing Countries (IFU), Wind Power A.S.
(Vestas), Finnish Fund for Industrial Cooperation Ltd (Finnfund), and Norwegian Investment
Fund for Developing Countries (Norfund). LTWP is solely responsible for the financing,
construction and operation of the wind farm. Aldwych, an experienced power company focused
on Africa, will oversee the construction and operations of the power plant on behalf of
LTWP. Vestas will provide the maintenance of the plant in contract with LTWP. The power
produced will be bought at a fixed price by Kenya Power (KPLC) over a 20-year period in
accordance with the signed Power Purchase Agreement (PPA).
The European Investment Bank is one of the world’s largest lenders in renewable energy and
over the last five years provided more than EUR 26 billion for renewable energy projects around
the world.
Over the last five years the European Investment Bank has supported investment in a broad
range of projects, covering energy, transport, water and private sector investment totalling 10.5
billion euro across the African continent.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union
owned by its Member States. It makes long-term finance available for sound investment in order
to contribute towards EU policy goals.
Press contact
Richard Willis, +352 621 555 758, willis@eib.org
Website: www.eib.org/press – Press Office: +352 4379 21000 – press@eib.org