US$2.5BN WIND PLANT CONSTRUCTION MOVED FROM KENYA TO TANZANIA

Swedish firm decides to move the 600mw wind power plant construction after kenya’s energy department cite lack of framework for renewable energy.

VR Holding AB which is a Swedish firm has decided to move the 600mw wind farm construction from Kenya to Tanzania because the Ministry of Energy turned down the request citing lack of framework for renewable energy projects of that scale as well as low demand for electricity in the country.

The project was turn down by the minister because he felt that the country will have excess power and therefore forcing the citizen/consumers to pay billions of shillings annually for electricity not used and will also dim the government’s quest to deliver cheaper power through renewable sources.

The ministry of energy ask the company to give a proposal for a smaller capacity plant of 50MW because wind is an intermittent power source and as such they cannot approve such a big plant in one location as it come with huge costs tied to power supply reliability and transmission.

VR Holding AB Executive, Victoria Rikede, ”We have opted to look at offshore solutions for Tanzania because Kenya is proving to be a very difficult place and besides the grid is too weak to absorb all the power produced and therefore mini-grids is the solution for now.”

Tanzania was picked as its replacement because the both countries shares the Indian Ocean coastline. The wind power plant is expected to cost US $2.5bn and will be the largest wind plant in Africa.