Infrastructure

Finnish Firm Wins Deal to Build 80MW Solar Plants in Kenya

There are about 15 utility-scale solar projects announced in the country with a of 526MW.

Updated on

November 13, 2018

Workers arrange solar panels on-site. — The contract is worth at least Sh8 billion. PHOTO | FILE

Finnish energy firm Wartsila Corporation has secured two engineering, procurement and construction deals to build two solar parks in Kenya, each with a capacity of 40 megawatts.

Construction of the two plants – one in Uasin Gishu and the other in Lamu – is expected to begin next year, according to George Oywer, a manager at Wartsila Oyj’s East African unit.

The Uasin Gishu solar park, which will be located in Kesses constituency, is owned by Alten Renewable Energy Developments BV. Its financial close is expected by March next year.

“This will be our first solar project in the eastern Africa region,” Mr Oywer said.

He disclosed that the developer of the Lamu solar park is negotiating a power-purchase agreement with Kenya Power Plc and that the project is expected to go live in June 2020.

Wartsila has an option to take as much as a 19.9 percent stake in the Lamu solar park.

The cost of the solar parks is yet to be disclosed, but it costs an average of Sh100 million per megawatts to construct such projects – meaning the contract is worth at least Sh8 billion.

The solar parks come at a time when Kenya is advancing power production from renewable sources including wind and geothermal as it cuts reliance on diesel-powered plants.

According to Bloomberg New Energy Finance, there are about 15 utility-scale solar projects announced in the country with a total capacity of 526 megawatts.