The construction of 40 megawatts Malindi solar photovoltaic project has started in Kenya. Independent power producer Globeleq recently announced the financial closing of the Malindi solar project in Kenya’s Kilifi County.
The project which is located about 120 kilometres Northeast of Mombasa recently reached a financial close of US 66 million. The British government’s development finance agency will contribute USD 50 million while its partner, Globeleq, will finance the remaining US $16m. The funds will be a loan refundable over 16 years.
“The favourable investment climate, combined with strong support from the local community, paves the way for this important project and future investments in Kenya. We are extremely pleased to make this investment in the Kenyan energy sector,” Paul Hanrahan, the President and Chief Executive Officer of Globeleq made these enthusiastic remarks.
Construction of the plant is expected to be completed in the next one year and reach commercial operation by mid-2020. In addition, the project is the first Independent power producer-owned power plants to reach the construction phase.
The energy produced will be consumed by locals as the region is still facing load shedding. The sale of electricity from the solar park will be made by the Kenya Power and Lighting Company (KPLC), which provides public electricity service in Kenya. The lighting company has signed a 20-year power purchase agreement (PPA) with Globeleq. Construction of the solar project is projected to strengthen Globeleq’s presence in East Africa, as reported by Construction Review Online.