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Rumuruti Solar Power Station

Coordinates: 00°14′12″N 36°32′49″E / 0.23667°N 36.54694°E / 0.23667; 36.54694
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Rumuturi Solar Power Station
Map
CountryKenya
LocationRumuruti, Laikipia County
Coordinates00°14′12″N 36°32′49″E / 0.23667°N 36.54694°E / 0.23667; 36.54694
StatusUnder construction
Construction beganJanuary 2020 (Expected)
Commission dateDecember (Expected)
Construction costUS$60 million
OperatorRumuruti Solar Generation Holding
Solar farm
TypeFlat-panel PV
Power generation
Nameplate capacity40 MW (54,000 hp)

The Rumuruti Solar Power Station is a 40 MW (54,000 hp) solar power plant under development in Kenya.[1]

Location

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The power station is located in the town of Rumuruti, the county headquarters of Laikipia County, approximately 230 kilometres (143 mi), by road, north of Nairobi, the capital and largest city of Kenya.[2] The government of Laikipia County has provided 300 acres (121 ha), on which the power station will be built.[3][4]

Overview

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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

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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:[1][6]

Rumuruti Solar Generation Holding Stock Ownership
Rank Name of Owner Country Percentage Ownership
1 Kenergy Renewables Limited Kenya
2 Norfund Norway
3 Scatec Solar Norway
Total
100.00

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

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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

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References

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