Swedish firm moves Sh253bn Malindi power plan to Tanzania

#1
A Swedish firm that wanted to construct Africa’s largest wind power plant in Malindi at a cost of Sh253 billion has relocated the investment to Tanzania, citing frustration by Kenyan authorities.

VR Holding AB had last year expressed interest in building a 600-megawatt (MW) wind farm in the Indian Ocean waters bordering Ras Ngomeni in Malindi, but Ministry of Energy officials turned down the request citing lack of a framework for renewable energy projects of that scale besides low demand for electricity in the country.

READ: Kenya rejects bid for Africa’s largest wind power plant

The firm’s executives said they have now switched their focus to Tanzania, which shares the Indian Ocean coastline.

“We have opted to look at offshore solutions for Tanzania,” Victoria Rikede, an executive at the company said.

“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,” she added.

Kenya, East Africa’s largest economy, has recently been losing mega investments to Tanzania, including a crude pipeline deal with Uganda.
 

uraman

Village Elder
#12
Currently we are producing more than the demand. That project would have been a redundant.
I think tanzania need that project than kenya, but they have to be careful not to have surplus coz that can lead to higher tariffs.
A Swedish firm that wanted to construct Africa’s largest wind power plant in Malindi at a cost of Sh253 billion has relocated the investment to Tanzania, citing frustration by Kenyan authorities.

VR Holding AB had last year expressed interest in building a 600-megawatt (MW) wind farm in the Indian Ocean waters bordering Ras Ngomeni in Malindi, but Ministry of Energy officials turned down the request citing lack of a framework for renewable energy projects of that scale besides low demand for electricity in the country.

READ: Kenya rejects bid for Africa’s largest wind power plant

The firm’s executives said they have now switched their focus to Tanzania, which shares the Indian Ocean coastline.

“We have opted to look at offshore solutions for Tanzania,” Victoria Rikede, an executive at the company said.

“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,” she added.

Kenya, East Africa’s largest economy, has recently been losing mega investments to Tanzania, including a crude pipeline deal with Uganda.
 
#19
To the taxpayers sir. A huge power plant would leave Kenya with excess power that will see consumers pay billions of shillings annually for electricity not used
Excess power ? Energy access in Kenya only stands at 50% my friend. How do consumers pay for electricity not used? Plus this is a private entity that would be selling to the distributor and grid owner i.e Kenya Power.
 

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