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Add to Preferred SourcesThe European Investment Bank and FMO, the Dutch entrepreneurial development bank, have agreed to finance the construction and operation of two new solar photovoltaic plants in Kenya.
EIB and FMO will each provide USD 53 million for the two projects, with the remainder of the USD 147 million total project cost provided by the project promoters Frontier Energy, David Langat, Chairman of the DL Group of Companies and Ayaz Merali, Managing Director of Paramount Bank.
The new Radiant and Eldosol projects are amongst the first to generate utility-scale solar power in East Africa. The two schemes will diversify Kenya’s electricity supply away from both rain-dependent hydro and fossil fuels, contribute to improving grid stability in Western Kenya and cater for expected increased in energy use in the coming years.
“As world leaders meet in New York to discuss future plans to save our planet, Kenya with EU support, is leading the way with visionary climate action. 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,” said European Union Ambassador, Simon Mordue.
Successful completion of non-recourse project financing for the two solar projects, commercial lending that based on project proceeds, demonstrates the strong investment potential for the future development of renewable energy by the private sector in East Africa.
“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. Successful financial close of this project demonstrates the close cooperation of government, development partners and private sector investment and our shared goal of supporting national electrification, ” said Catherine Collin, European Investment Bank Regional Representative for East Africa.
Original source: EIB
Published on 24 September 2019