We are pleased to update the current status of Kisumu Solar One 40MWAC Solar Project, under development in Kibos (Kajulu) with planned commissioning and operation in 2024. The Project is endorsed by the Government of Kenya also for development under the framework of the Cotonou Agreement/ACP-EU Partnership.
The Project is planned to have a capacity of 40 MWAC (48.25 Mwp) with single axis tracking,
on a 249 Acre land, 8 kilometers from the Kibos new Sub Station. Kisumu Solar One has a first year estimated output of 103.000 MWh which will be fed into the Kibos substation. The all-in Capital Expenditure is estimated at US$ 52 Million (Kenya Shillings 6.8 Billion). Kisumu Solar One Limited is developed and entirely owned by Ergon Solair Africa Limited, a company with US-European-Kenyan ownership.
The COD, originally granted by EPRA for Dec 2023, was rediscussed with the Ministry of Energy in 2022, and has been formally extended to 2024, confirmed in writing by KPLC. The Tariff, which was originally confirmed by EPRA at US$ 0.075, following discussions with the Ministry of Energy, was agreed at US$ 0.0575. Following such discussions, Mr. Geoffrey Muli of KPLC formally confirmed to us in Oct 2022 the Bulk Tariff of US$ 0.0575, reiterated the new COD date of 2024. and confirmed approval that we proceed to PPA negotiations as soon as the new PPA negotiations process has been streamlined.
In follow up also of discussions with KPLC on the need for storage capacity in Kenya, we offered to build a 16 MWh energy storage facility adjacent to the Kisumu Solar One power plant. The additional investment, estimated in US$ 10 Million, if agreed upon, will require a top up of the Bulk Tariff, to be discussed.
The project will be financially structured as blended finance. Institutional and Private parties have expressed interest to fund the completion of the project.
Kisumu Solar One is also part of a vast program that the developer, jointly with other Kenyan and European partners, is promoting for multiple European-Kenya Green Deal project developments under the ACP-EU Partnership. We received formal endorsement to develop these initiatives from the Government of Kenya in August 2022 with the project pipeline approved by the then Principal Secretary of Devolution Mr. Julius Korir (currently PS Cabinet Affairs). The pipeline includes also projects of various scope in Nyeri, Eldoret, Kisumu, Kakamega and other areas.
We are also planning a collateral development adjacent to the Kisumu Solar One power plant, on the same land, a Center for Excellence in Sustainability, also endorsed by the Government of Kenya for development under the ACP-EU Partnership. The Center, once completed and operational, will be a global center for the study and proposal of Green Deal solutions for an African Green New Deal, projecting Kenya worldwide as a leader in the Global Green New Deal.
