Infrastructure

Japanese Firm to Spend Sh6bn on 40MW Kitui Solar Project

Looop will execute the plan, while the county government will provide the land.

Updated on

September 11, 2018

Garissa solar plant — A solar park. The use of solar energy can save money on household power bills. PHOTO | FILE

Japan solar power systems manufacturer Looop Inc. is finalising plans to build a 40-megawatt solar plant in Kitui County, about 170 km southeast of Nairobi, as the company seeks to grow its renewable energy footprint in Africa.

This follows the signing of an agreement with Governor Charity Ngilu’s administration that will see the Tokyo-based company begin production in September next year.

According to the agreement, Looop will develop and implement the business plan, while the county government will provide the land on which the facility will be set up.

The Kitui solar plant, which is awaiting regulatory approval, arose from joint studies that Looop piloted with the Jomo Kenyatta University of Agriculture and Technology (JKUAT).

At the onset, the Kitui solar plant will produce 10MW before hitting full capacity in 2021. The electricity will be sold to Kenya Power under the country’s feed-in tariff system for 20 years.

The government currently offers a tariff rate of Sh12/kWh for solar projects ranging from 10-100 MW in size and Sh10/kWh for 0.5 – 10 MW arrays.

The National Environment Management Authority (Nema), which has invited the public to comment on the project, said the “solar PV power plant will contribute to a reduction in the use of fossil fuels resulting in lower greenhouse gas emissions and alleviation of global warming.”

Japan solar project

Looop said in an earlier statement that the project would be the first solar array to be developed by a Japanese company on the continent outside of South Africa.

The project will further raise the profile of Japan as a key developer of renewable energy ventures in Kenya. Currently, Japanese companies such as Mitsubishi, Toyota Tsusho and Toshiba are the top makers of Kenya’s geothermal power plants.

Mitsubishi, for example, is constructing a 158MW Olkaria V steam power plant in Naivasha for Sh35 billion. The plant is scheduled for completion mid-next year.

Toyota Tsusho, in partnership with Korean firm Hyundai, built 280MW geothermal power plants in Olkaria for KenGen – which was fed to the national grid in the second half of 2014.