General Electric will supply 60 wind turbines and will service the plant over a 15-year period.
The wind farm is part of US President Barack Obama’s ‘Power Africa’ initiative, which aims to add 30,000MW of renewable power capacity in Sub-Saharan Africa.
Kipeto Energy is to supply Kenya Power with electricity from its 100MW wind farm in Kajidao County under a 20-year power purchase agreement.
The project, which is supported by the International Finance Corp (IFC), is expected to reach financial close and commence construction in the second half of 2016. It is located 70km from Nairobi.
Kipeto is being developed jointly by the IFC’s InfraVentures, which supports infrastructure projects in developing countries, African Infrastructure Investment Managers and Kenyan company Craftskills Wind Energy International.
The US Overseas Private Investment Corporation is the principal lender to the project.
IFC, the private sector arm of the World Bank, is advising Kipeto management on best practices related to land, community and the environment.
Kipeto has also set up a community development trust through which 5% of the wind farm’s dividends will be invested in health, education, and other social projects to benefit Kajiado county residents.