Infrastructure

US Firm to Set Up Sh6.4bn Solar Park in Kisumu

Ergon Solair wins approval to build a 40MW solar plant at Kibos.

Updated on

August 7, 2022

Ergon Solair PBC USA is set to begin construction of a 40MW solar park in Kisumu after receiving all the requisite approvals from the Kenyan government.

Through its partner Ergon Solair Africa Ltd., the American solar developer will spend Sh6.4 billion to set up the power plant on a 249-acre piece of land at Kibos.

In April 2020, Ergon Solair Africa won regulatory consent to build a 40MW photovoltaic (PV) park in Kisumu backed by a $0.075 per kWh feed-in tariff (FiT).

The approval, which was granted by the Energy Regulatory Commission of Kenya (EPRA), covered the Kisumu Solar One project that was to go live in Dec. 2023.

However, despite the consent, the project failed to take off as the investors did not agree on the finer details of a power purchase agreement with Kenya Power.

On Tuesday, however, President Uhuru Kenyatta said the project had finally received all the approvals from the State and that the investors were at liberty to launch works for the project whose feasibility studies were done in 2014.

“I am pleased to announce to you that the proposed Solar One Limited plant at Kibos has received all government approvals and the project implementation can now commence immediately,” Mr Kenyatta said.

Ergon Solair Africa had earlier said the Kisumu Solar One Park would generate 105.3 MWh of electricity during its first year of operation.

The plant will be linked to the national grid via a neighbouring 220 kV substation.

“We have agreed with those from Solar One that Kenya can no longer afford to pay this high cost, and high tariffs some of our producers of electricity continue to demand from us,” Mr Kenyatta said.

Kenya is endowed with yearlong supply of ample sunshine which makes it easy to operate both small-scale and large-scale solar power systems within the country.