The Danish Climate Investment Fund (DCIF), managed by IFU, has been a co-owner of Lake Turkana Wind Power since construction began in 2014. The investment has been instrumental in securing the financing, construction and operation of the largest wind farm in Africa.
DCIF’s shareholding of 6.25 per cent in Lake Turkana Wind Power has now been sold to the Climate Finance Partnership, a public-private finance vehicle managed by BlackRock.
“Lake Turkana Wind Power is a flagship project, and we are proud to have played an active role in bringing this pioneering project through construction and into operations, providing affordable and reliable green energy in Kenya.”
Reik Haahr Müller, Senior Vice President, Head of Green Energy & Infrastructure in IFU.
Serving around 1.2 million homes with green power
Lake Turkana Wind Power is located in the Loiyangalani District of Marsabit County and was connected to the national grid in 2018. Today, it meets around 14 per cent of Kenya’s current electricity demand, serving 1.2 million households. The electricity generated has improved the reliability of Kenya’s power supply, reduced the country’s reliance on fuel import and avoided millions of tons of CO2 emissions.
The electricity is produced by 365 wind turbines (310 MW) from Vestas, and the establishment of the wind farm included the construction of 200 km of road and a 400 km transmission line connecting the wind farm with the national grid.
Lake Turkana Wind Power is situated in a perfect location leading to an annual average capacity factor of around 60 per cent, which is exceptionally high for a wind farm.
Improving local livelihood
Lake Turkana Wind Power has been dedicated to improving local livelihood. Indirectly, the construction of the 200 km road has had a positive impact on the local infrastructure and reduced travel time as well as cost of transportation.
“Lake Turkana Wind Power has supported numerous local community development projects within education, health and access to water, among other things. Through the Winds of Change programme, which was set up by Lake Turkana Wind Power, we have ensured that the communities will continue to benefit from the project,” said Reik Haahr Müller,
Lake Turkana Wind Power has also had a positive impact on local employment. During construction around 2,500 people were employed, and currently the company employs close to 330 people, of whom around 85 per cent come from Marsabit County.
Danish pension funds have supported the project
The Danish Climate Investment Fund is a public-private investment fund, managed by IFU. The fund was set up in 2014 in cooperation with large Danish pension funds and private investors, who were among the first to engage in direct private sector investments supporting the green transition in developing countries. The investors include PKA, PensionDanmark, PBU, Aage V. Jensens Fonde and Dansk Vækstkapital.