EIB, FMO to provide £85m for construction of two solar projects in Kenya

WCN Editorial Team 26 Sep 2019 AFRICA ENERGY & UTILITIES

The European Investment Bank (EIB) and Dutch development bank FMO have agreed to provide $106m (£85m) in financing for the construction of 80MW Radiant and Eldosol solar projects in Kenya.

The two banks will each provide $53m (£42.5m) for the two projects, which are estimated to cost $147m in total.

The projects will receive additional funding from its promoters which include Frontier Energy, DL Group of Companies chairman David Langat and Paramount Bank managing director Ayaz Merali.

The two projects, which are amongst the first to generate utility-scale solar power in East Africa, will have a generation capacity of 40MW each.

Located near Eldoret, 300km north-west of Nairobi, the two solar projects will be connected to the Kenyan national energy grid.

Europe Union ambassador Simon Mordue said: “These two new solar schemes funded by the European Investment Bank, Dutch Development Bank FMO and Frontier Energy from Denmark will provide clean energy for Kenya and demonstrate direct benefits of the close partnership between Kenya and the European Union.”

Featuring 300,000 solar panels, the two projects will have the capacity to power more than 300,000 of the nation’s homes.

EIB East Africa regional representative Catherine Collin said: “Expanding renewable energy is crucial to enable all Kenyans to access electricity.

“The European Investment Bank is pleased to support the Radiant and Eldosol solar projects and build on our track record of supporting expansion of wind, geothermal and solar power across Africa and around the world.

“The Radiant and Eldosol solar projects demonstrate how visionary energy investment can accelerate social, economic and human development and show how Kenya is taking advantage of its rich renewable resources as a global leader in clean power generation.”

The projects are expected to contribute to the Kenyan government’s aim to provide access to electricity to all citizens by 2022.

FMO chief investment officer Linda Broekhuizen said: “Both projects will increase the much-needed electricity generation capacity in Western Kenya and improve the region’s access to reliable energy.

“Being 100% green, the projects also fully align with our strategic goal to take climate action and further support the transition to a low-carbon system in Kenya.”

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Image: The Radiant and Eldosol solar projects will have 300,000 panels. Photo: courtesy of Frontier 2019/EUROPEAN INVESTMENT BANK.

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