The European Investment Bank (EIB) and FMO, the Dutch entrepreneurial development bank said Tuesday they have agreed to finance construction and operation of two new solar photovoltaic plants in Kenya.
EIB and FMO will each provide 5.3 billion shillings (53 million U.S. dollars) for the two projects, with the remainder of the 147 million dollars project provided by the Africa-focused renewable developer Frontier Energy, David Langat, who is the chairman of the Nairobi-based DL Group of companies, and Ayaz Merali, the managing director of Kenya’s Paramount Bank.
“These two new solar schemes funded by the EIB, 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 EU Ambassador Simon Mordue in a statement issued in Nairobi.
The new Radiant and Eldosol projects are amongst the first to generate utility-scale solar power in East Africa.
The EIB said 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 increase in energy use in the coming years.
Catherine Collin, EIB regional representative for East Africa said expanding renewable energy is crucial to enable all Kenyans to access electricity. Enditem