Rumuruti Solar Power Station Explained

Rumuturi Solar Power Station
Coordinates:0.2367°N 36.5469°W
Country:Kenya
Location:Rumuruti, Laikipia County
Status:UC
Construction Began:January 2020 (Expected)
Commissioned:December (Expected)
Cost:US$60 million
Operator:Rumuruti Solar Generation Holding
Solar Type:PV
Ps Electrical Capacity:40MW

The Rumuruti Solar Power Station is a 40MW solar power plant under development in Kenya.[1]

Location

The power station is located in the town of Rumuruti, the county headquarters of Laikipia County, approximately 230km (140miles), by road, north of Nairobi, the capital and largest city of Kenya.[2] The government of Laikipia County has provided 300acres, on which the power station will be built.[3] [4]

Overview

In June 2018, Kenergy Renewalables Limited, a Kenyan solar energy company, signed a sales agreement with the Kenyan government for sale of 40 megawatts of electricity for a twenty-year contract period. Kenya Power and Lighting Company, the Kenyan electricity distribution company, shall pay US$0.08 per kilowatt hour for the 20-year duration of the contract.[5]

Developers

The developers of this power station include the following stakeholders (a) Kenergy Renewables Limited, a Kenyan company founded in 2011, that manages development activities before and during construction, including permitting, procurement, engineering and financing[5] (b) Norfund, the Norwegian Fund for Developing Countries[1] and (c) Scatec Solar, a solar products manufacturer based in Norway.[1]

The three investors in the project formed a special purpose vehicle company to develop, construct, and operate the solar power station. The SPV company is called Rumuruti Solar Generation Holding. The SPV company is registered in the United Kingdom. The ownership of the SPV company is as illustrated in the table below:[6]

Rumuruti Solar Generation Holding Stock Ownership! Rank !!Name of Owner!!Country!!Percentage Ownership
1 Kenergy Renewables Limited Kenya
2 Norway
3 Scatec Solar Norway
Total

In August 2020, Afrik21.africa reported that Scatec and Norfund, both from Norway, withdrew from the project, because "the development timelines were too long".[7]

Construction costs and funding

It is estimated that construction will cost at least US$60 million, and possibly as high as US$70 million. The majority of the construction costs are expected to be borrowed. The company owner/developers requested a "letter of support" from the government which will provide clarity on when the plant will become operational, to convince potential lenders to loan the money.[8]

In October 2019, the governor of Laikipia County, Ndiritu Muriithi and the Chief Executive Officer of Kenergy Renewables, Ms. Khilna Dodhia signed a memorandum of understanding (MoU) that will govern the construction of this power station. Construction is expected to start at the beginning of 2020, and last 10 months.[3] [4]

See also

External links

Notes and References

  1. Web site: 14 June 2018 . Solar firm to sell 40MW from Sh6bn Laikipia unit . Business Daily Africa. 30 March 2019 . James . Kariuki . Nairobi.
  2. Web site: Distance between Central Business District, Nairobi, Kenya and Rumuruti, Kenya . 30 March 2019 . 30 March 2019 . Globefeed.com . Globefeed.com.
  3. Web site: 22 October 2019 . Kenya To Construct 40MW Solar Power Plant In Laikipia County . Construction Review Online . 25 October 2019. Patrick Mulyungi . Nairobi.
  4. Web site: Laikipia Inks Sh6 Billion Solar Energy Plant Deal . 22 October 2019 . . 25 October 2019 . James Murimi . Nairobi.
  5. Web site: 6 June 2018 . Kenya: Kenergy Renewables wins major sales contract with the State . Afrik21 . 30 March 2019 . Boris Ngounou . Paris, France.
  6. Web site: Kenya: Solar projects sign PPAs . Africa-energy.com . Africa Energy . 25 May 2018 . 30 March 2019 . Hastings, United Kingdom.
  7. Web site: Kenya: Norfund and Scatec Solar slam the door on the Rumuruti PV solar project . Afrik21.africa . 31 August 2021 . Jean Marie Takouleu . 30 May 2022 . Paris, France.
  8. Web site: Kenyan solar energy firm signs 40 MW power deal with state-run utility . 31 May 2018 . https://web.archive.org/web/20190330204652/https://af.reuters.com/article/kenyaNews/idAFL5N1T22I0 . dead . 30 March 2019 . 30 March 2019 . . Omar Mohammed.