The African Development Bank Group (AfDB) has agreed to provide $18.17m of loan to Voltalia, the owner and developer of the 40MW Kopere Solar Power Project, to be located in Kenya.
Image: AfDB to provide $18.17m loan for Voltalia to develop 40MW Kenyan solar plant. Photo: Courtesy of RK008/FreeDigitalPhotos.net.
The Bank is also in the process of securing $11.6m concessional loan from the Climate Investment Fund’s Scaling-up Renewable Energy Program (SREP).
The Kopere project, which falls under Kenya’s Renewable Energy Feed-in-Tariff (FiT) policy, encompasses the design, construction and operation of a 40MW solar PV power project in Nandi County. The project also involves the construction of a 33/132kV substation, and a 1.8km T-line to evacuate the electricity to the national grid.
AfDB power, energy, climate change and green growth vice-president Amadou Hott said: “This project could potentially be Kenya’s first utility-scale solar PV project under the Feed in-Tariff (FiT) Policy. We are confident that the provision of long-term and concessional financing to support the project with terms that are unavailable from commercial sources will have an important demonstration effect in attracting more investors to engage with Kenya’s vast solar opportunities.”
The project is expected to generate around 106GWh per year, and effectively supply electricity to approximately 600,000 people through the grid. It will also save 1,081kt CO2eq in GHG emissions annually throughout the project operation.
AfDB energy financial solutions, policy & regulation director Wale Shonibare said: “Kenya’s Vision 2030, and the ‘Big 4’ agenda ambitions come with a renewed urgency for affordable electricity, while pursuing a low carbon development pathway. By providing access to quality energy at a cost below the current generation costs in Kenya, the Kopere project will diversify Kenya’s energy mix, and ultimately contribute to reduced dependence on fossil fuels.”
The project is aligned with the Bank’s New Deal on Energy, the High Five priority to ‘Light up and Power Africa’, and the Bank’s country strategy for Kenya. It is also aligned with Kenya’s FiT policy, Vision 2030 Initiative, and with Kenya’s Intended Nationally Determined Contributions (INDC) for climate resilient growth.
The Kopere project will enhance energy access, infrastructure development, and private sector participation in the renewable energy sector while contributing to green growth, and job creation.
Implementation of the project will commence in 2019.
Source: Company Press Release