The independent power producer – also a member of the Power Africa initiative led by Barack Obama – aims to add 60MW to Kenya’s 1,672MW national power grid. In comparison, the UK had over 15.5GW of generation capacity in 2012.
Aeolus’ 60MW Kinangop wind park will be financed through a combination of debt and equity with Standard Bank Group acting as lead arranger and underwriting $90m of the debt. Norway’s Norfund will provide $60m in equity.
The Power Africa initiative is aiming to develop 1GW of wind, geothermal and gas fired power projects throughout Kenya.
‘With the rising demand for electricity in Kenya, this project will go a long way in providing cost-effective power to the economy. It is a good example of how to successfully bring private players into the renewable energy sector and serves as a good vote of investor confidence in the Kenyan economy,’ said Kwame Parker, Standard Bank Group’s East Africa head of debt solutions and infrastructure finance.
‘The project is designed to provide a clean source of electricity to Kenya. It will not only contribute to the social and economic development of Kenya, but will also significantly help ease the energy supply deficit that the country is grappling with. It provides a perfect opportunity for Kenya to increase the production of clean energy and reduce heavy reliance on other sources of power.’
