UK firm to acquire 31.25pc stake in Lake Turkana Wind Power
Lake Turkana Wind Power project in Laisamis, Marsabit County.
A United Kingdom firm, CFP UK Holdings Limited (CFP) is set to acquire a 31.25 percent stake in Lake Turkana Wind Power (LTWP) which owns a 310 megawatts(MW) wind-powered electricity generation plant in Loyangalani, Marsabit county.
LTWP said it will make an application to the Energy and Petroleum Regulatory Authority for approval of the acquisition deal.
“Subject to relevant regulatory approvals being obtained and other various condition precedents being satisfied in relation to the proposed transaction, CFP intends to partner with the existing shareholders of the company to ensure the success of the 310MW wind-powered electricity generation plant at Loyangalani, Laisamis district, Kenya,” the company said.
Six shareholders own LTWP, namely: Anergi Turkana Investments Limited, KP&P Africa B.V, Danish Climate Investment Fund I K/S, Vestas Eastern Africa Limited, Finnfund – the Finnish Fund for Industrial Cooperation; and Sandpiper Ltd.
The value of the impending deal wasn’t immediately known.
LTWP has a capacity of 310 megawatts — enough to power up to one million homes —entered into a power purchase agreement (PPA) with Kenya Power and Lighting Company(KPLC) in 2009.
Under the PPA, LTWP was to finance, design, procure, construct, install, test, commission, operate, maintain, and sell net electricity output exclusively to KPLC.
KPLC on the other hand was required to evacuate all net electric power from the LTWP plant once commissioned for 20 years.
LTWP commissioned its power plant on January 27, 2017, but the government, which built the evacuation line did not complete the works until September 24, 2019.
The LTWP has faced hiccups including delayed evacuation of power—a position that has resulted in hefty penalties to taxpayers. For example, taxpayers two years ago footed a Sh18 billion penalty due to delays in connecting the LTWP to the national grid.
The huge payout arose from a 381-day delay in the completion of the 428km high-voltage power line from Marsabit to Suswa substation in Narok, the main interchange for power from different sources.
