Kenya green lights wind farm as Spain eyes expanding African renewables market

The Kenya Electricity Generating Company (KenGen) has this week invited tenders for the construction of a 10MW wind farm, following the award of a €20m concessional loan from the Spanish government to help finance the project.

KenGen, which generates approximately 77 per cent of Kenya's electricity, has been assigned the responsibility of choosing a contractor for the project by the Kenyan energy ministry.

An advertisement, published in the local Daily Nation stated: "KenGen invites sealed tenders from eligible candidates for the design, manufacture, supply, delivery, erection, testing and commission of the Ngong II wind power project."

The advert also hinted strongly that Spanish suppliers were being sought, stating that: "Bidding is open to all firms from the Kingdom of Spain being the eligible source country".

While there is no guarantee that a Spanish contractor will be chosen, the move illustrates the manner in which Western governments such as Spain are hopeful that financing clean tech projects in emerging markets could serve to bolster exports.

Spain is the world's fourth biggest producer of wind power, after the United States, Germany and China, and is set to achieve a goal of generating 30 per cent of its electricity needs from renewables by 2010, with half of that coming from wind.

The Spanish wind energy sector now boasts more than 500 companies, with approximately 150 wind turbine production plants.

A number of high-profile Spanish wind energy firms are likely to be mulling bids for the Kenyan project, including national energy giant Iberdola, which produces 27 per cent of Spain's wind power; Acciona, which holds 16 per cent of the Spanish wind energy market and already has operations in Morocco; and wind turbine manufacturer Gamesa Eólica.

The Ngong II project represents the second phase of a project that has already seen 5.1MW of wind energy capacity linked to the Kenyan national grid from a wind farm financed by the Belgian government.

Power demand in Kenya is rising at approximately eight per cent a year and the government is keen to build its renewable energy capacity in order to curb carbon emissions and reduce reliance on hydro-electric plants that have been disrupted in recent years by erratic rainfall.

The country has some of the most attractive renewable energy resources in Africa, with some estimates predicting it could deliver up to 2,000MW from wind energy, 7,000MW from geothermal sites in the Rift Valley, and 300MW from biomass produced in local sugar factories in the coming years.