LakeT-EMEA-Sept12-Bro

Lake Turkana Wind Power Gifted with wind

www.ltwp.co.ke

Gifted with wind

Lake Turkana Wind Power

In harnessing the naturally windy conditions near Lake Turkana, north-west Kenya, the Lake Turkana Wind Power project will give a much-needed boost not only to Kenya’s grid but to local communities as well written by: Catherine Dunlop research by: Richard Halfhide

The site was selected following extensive surveys

Lake Turkana Wind Power

T

he Lake Turkana Wind Power the basis of its seclusion, wind strength project (LTWP) is set to provide and stability, proven technology, benign 300MW of clean power to environmental setting, low population Kenya’s national electricity density, security, fresh water availability grid— approximately 20 per cent and road accessibility. In addition, in order of the country’s current installed electricity to protect birdlife, the wind farm is sited at generating capacity—by taking advantage least nine kilometres from the shore of Lake of the unique natural wind resource near Turkana. A 12-month ornithological study Lake Turkana in north-west Kenya. At was carried out and annual environmental an estimated cost of Ksh75 billion (€582 audits will be conducted for the entire wind million), the project will be the largest single farm during its 20-year operation period.

When completed, output from the wind private investment in Kenya’s history.

The wind farm site covers 162 square farm will give Kenya’s installed generation kilometres in Loyangalani District, Marsabit capacity a much-needed shot in the arm.

West County, approximately Currently, installed capacity 50 kilometres north of stands at around 1,450MW; South Horr Township. The about 60 per cent of this is hydro-generated, 14 per project will comprise 365 wind turbines (each with cent is geothermal and the a capacity of 850kW), the balance is fossil fuel. Hydro Saving offered by LTWP associated overhead electric is becoming increasingly on current average cost grid collection system and a unreliable due to an increase of Kenyan power high voltage substation. in droughts affecting the region, and the price of The joint venture partners for the project are KP&P BV Africa; Aldwych diesel is spiralling. “At a cost of 7.52 Euro International Limited; the Industrial cents/KWhr, the energy generated by LTWP Development Corporation of South Africa represents approximately a 40 per cent Limited (IDC); the Norwegian Investment saving on the present average cost of the Fund for Developing Countries (Norfund); power mix in the country, so the advantage and the Industrial Fund for Developing is clear,” explains LTWP chairman Carlo Countries (IFU) Denmark.

Van Wageningen.

Several sites in Marsabit County The project will also benefit Kenya were explored for their suitability, with in a wider economic sense, says Van the eventual site selected following an Wageningen. “LTWP will represent the extensive survey of the region that took largest ever single private investment in into account environmental, social, the region: we hope that this will encourage sustainability, technology and commercial large-scale private investments and assist considerations. The site won through on in mitigating the perception that large

40%

investments are not possible in this part potential for indirect employment, and this of the world—due to the perceived risks poor region of Kenya stands to gain new that international entrepreneurs and the businesses, employment opportunities, and investor community have about Africa in inevitably, more facilities such as schools general and Kenya in particular.� and health centres.

The wind farm alone, though, will bring It is for this reason that local support for economic rejuvenation to the local area. the project has been largely positive; but such The direct employment that expectation brings with it the project will generate the weight of responsibility, during its 30-month says Van Wageningen. “The con st r uc t ion per iod communities living in and stands at approximately around the site are excited 2,500, which will then about the project. LTWP has drop to about 300 during been interacting with them Number of wind turbines in LTWP the 20-year operation at regular intervals during the six-year development period. Add to this the vast

365

Working together at the site

Lake Turkana Wind Power

“We must seriously upgrade some 200 kilometres of road from Laisamis to Loiyangalani to safely transport all the heavy and bulky equipment to site” phase of the project, so they now want to see it built and provide the expected results for their wellbeing. Too often have they heard empty promises in the past and they fear that this might just end up being one of the same.” LTWP is committed and so is the government; nonetheless the project is still waiting for the final green light, pending

financial risk guarantees. The unforeseen delay has understandably caused some frustration among the local communities, given their high expectations from the realisation of this important project.

The delay is the latest in a series of challenges the project has faced. “We had to overcome mammoth challenges in the development phase; firstly, to convince all stakeholders that the project was viable and indeed a reliable source of power for Kenya.

We had to prove that the relatively weak Kenyan grid could effectively accommodate such a large amount of wind power in the system,” explains Van Wageningen. “Then we had the logistics: we must seriously upgrade some 200 kilometres of road from Laisamis to Loiyangalani to safely transport all the heavy and bulky equipment to site; and we must also be able to evacuate the power and connect to the grid—this needs a 428 kilometre high-voltage transmission line. Ketraco will be building this and the funding will come from the Spanish government (80 per cent) and the Kenyan government (20 per cent).”

The delay now is related to the credit enhancement that the project lenders (headed by the African Development Bank) require as a prerequisite to release the

The site has a benign environmental setting

funds. “Here we had reached satisfactory agreements with the government and Kenya Power, but the latter then transferred this onus to the World Bank Group,” says Van Wageningen. “Since then we have been waiting for them to complete their internal processes to issue the needed guarantees.

We are still waiting and are not clear when they will be approved; meanwhile Kenya is

spending some US$330,000 a day on diesel fuels to replace our power. This computes to $9 million a month or $108 million a year— expensive to an economy such as Kenya’s. The delays are now also affecting the various supply contracts which LTWP has entered into: these suppliers are also now waiting and may not be able to hold out on the prices previously agreed with

“The project has generated interest with other investors who are now rushing to Kenya to invest in this industry”

Lake Turkana Wind Power

Electrical wiring

Measuring the wind

LTWP. Significant changes has generated from all walks in prices could scuttle the of life. The project has also project and may require generated interest with an upward revision of the other investors who are now power price agreed with rushing to Kenya to invest in Size of wind farm site Kenya Power, thereby this industry. inflicting a further blow “Kenya needs power if it on the economy. LTWP is intends to meet its ambitious working hard to maintain the status quo goal of Vision 2030. Only 20 per cent of on this but there are limits as to how much Kenya enjoys the benefits of electrification and this project will be a major contributor we can control it.”

However, Van Wageningen remains to achieving that goal,” he concludes. positive. “Having brought the project to this closing stage, notwithstanding the above For more information about challenges, is satisfying,” he says. “We are Lake Turkana Wind Power visit: also now hearing from far and wide the www.ltwp.co.ke high level of expectation that this project

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Lake Turkana Wind Power T +245 (20) 272 7428 www.ltwp.co.ke

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