African power sector company Globeleq has reached financial close on the 40MW Malindi Solar PV project in Malindi, Kenya and is commencing construction of the plant.
The US$69 million installation is located in Langobaya, Malindi District, Kilifi County, about 120 kms northeast of Mombasa and is one of the first IPP-owned utility-scale PV installations in Kenya to begin construction.
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Electricity generated at the site will be sold through a 20-year agreement with the national distribution company, Kenya Power.
Gobeleq has been collaborating with the project originator, Africa Energy Development Corporation (AEDC), who will retain 10% ownership of the project, and its partner, IDEA Power, to bring the project into the construction phase by providing equity, project development and construction management experience.
CDC, the UK’s development finance institution, served as the mandated lead arranger, sourcing US$52 million in debt financing, including US$20 million from DEG, the German development finance institution.
Paul Hanrahan, Globeleq’s CEO said: “The attractive investment climate combined with strong local community support sets the stage for this important project as well as future investments in Kenya. We are extremely pleased to be making this investment into the Kenyan energy sector.’’
Sterling and Wilson Solar will begin EPC work on the installation, with construction expected to be completed on the project in around 12 months. Globeleq will oversee the construction and operations of the power plant.