US Company Buys Part of Turkana Windpower
On Monday, February 20, Vestas Wind Systems A/S revealed the sale of a 12.5% stake in the Lake Turkana Wind Power (LTWP) project to the Climate Finance Partnership (CFP), overseen by the American company BlackRock Inc.
As per the Danish company, the decision to sell was driven by its recent strategy shift to advance wind projects without retaining ownership in the long term.
Vestas will persist in maintaining the turbines, each possessing an 850-kilowatt capacity.
In 2009, the company, one of the leading manufacturers of wind turbines globally, acquired shares in collaboration with LTWP to address Kenya’s energy needs.
In June 2023, the fund under the US administration revealed its purchase of a 31.25% share in LTWP. This significant transaction, valued in the billions, aimed to enhance the overall performance of the project.
“CFP intends to partner with existing shareholders of the company to ensure the success of the 310MW wind-powered electricity generation plant,” read part of a statement from LTWP in March last year.
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The transaction received approval from the Competitions Authority of Kenya following the company’s submissions to the Energy and Petroleum Regulatory Authority (EPRA).
This represents the most recent advancement in the power plant’s ownership. In March of the previous year, President William Ruto revealed that Milele Energy, a US company based in Kenya, had obtained stakes in the project.
Ruto clarified that this action is indicative of a pattern in which international and cutting-edge corporations are strategically entering Kenya to delve into the nation’s renewable energy industry.
“US companies are big investors in Kenya and East Africa’s off-grid sector with over 40 percent market share. These companies are providing millions of people access to the life-changing benefits of power,” the Head of State remarked.
This initiative is expected to strengthen Kenya’s power capacity as the country moves towards embracing renewable energy in alignment with Vision 2030.
Established by Carlo Van Wageningen and a group of five individuals, the Lake Turkana Wind Project was inaugurated by ex-President Uhuru Kenyatta in 2019.
At the time of its launch, its valuation stood at a minimum of Ksh70 billion.
US Company Buys Part of Turkana Windpower