Kenya has accelerated approval of guarantees that the Lake Turkana wind farm needed to secure creditors for its 300 MW wind farm to bring RE to the national grid as a potential drought could be on the horizon. The Energy Permanent Secretary Patrick Nyoike said that the project will have letters of credit for six months totaling around $54.2 million.
The Lake Turkana Wind Project Chairman Carlo Van Wageningen said the first 50 MW would be on stream by the end of 2012 and the remainder in the first six months of 2013. The Treasury and Energy Ministry have been given permission by the Cabinet to set up escrow accounts with the government also commit itself to long-term power purchase deals at an enhanced rate of $0.12 kWh for wind power systems with a capacity of up to 100 MW.
Predictions have Kenya’s forecast looking partially gloomy as meteorologists are saying the East African country could expect a La Niña to hit next month and remain until March 2011. This could result in another drought, which if 2009 was any indicator, would be more than problematic for Kenya’s power sector.
Get your subscription NOW to receive the latest issue that will include a regional scope of Western Africa, geopolitical strategies at the expense of