M a r k e t N e w s
UK firms eye Sh64bn deals in green energy
Posted on : Friday , 7th October 2016
British investors are targeting projects worth about £500 million (Sh64.47 billion) in renewable energy sector, UK prime minister's trade envoy to Kenya and Tanzania Clive Hollick has said.
The projects are mainly in solar, wind and biomass power, areas where the country has underperformed.
The investors include Nova Energy, Green Globe Architecture Ltd, Tullow Oil, Eaton, KC Global Procurement LLP, OST Energy, Questworks, Solar World E.A. Ltd, Total Kenya, Virunga Power and Wind Prospect.
They are part of 100 companies that are in Nairobi for the UK-Kenya Renewable Energy Conference, sponsored by the British High Commission and Barclays Bank.
Hollick said the UK's Export Finance has committed about Sh28.33 billion (£250 million) to the projects, and more financing is expected from Barclays. The bank has been a key financier to the local renewable energy sector.
“But that's a number that is subject to the projects being viable and acceptable under the MoU signed between the UK and Kenyan governments in May,” the envoy said yesterday during the conference in Nairobi.
In the MoU, the UK committed Sh70.5 billion to support the development of strategic renewable energy projects in Kenya.
The deal also promotes opportunities for private sector trade and investment by the UK in Kenya's renewable energy sector.
Kenya generates about 1,632 megawatt of power, but the plan is to increase the capacity in the grid to more than 5,000MW.
The power mix is mainly made of hydro, thermal and lately geothermal, which was roped in about two years ago following the commissioning of the geothermal fields in Olkaria.
Energy Principal Secretary Joseph Njoroge said Tropical Power has already handed over a proposal to exploit hyacinth in Lake Victoria to general biomass energy.
“We welcome the interest showcased by the British firms. This is what we need to create – an energy sufficient country,” he said.
Barclays Kenya chief executive Jeremy Awori said they are ready to sponsor more renewable energy projects in Kenya in a bid to resolve energy access challenges.
“Locally, we have invested Sh13.4 billion to increase the capacity of Thika Power plant by 60 megawatts, and we have invested Sh26 million in the Light Up Kenya initiative,” he said.
Source : www.the-star.co.ke
