The total financial package of 5 billion DKK is now in place, as a number of banks have approved the final agreements on loan finance for Africa's largest wind farm, Lake Turkana. Hence, the construction of the project can be kicked into high gear.
The Danish Climate Investment Fund, that PensionDanmark co-founded, invests 87 million DKK of equity. EKF, Denmark's Export Credit Agency, is simultaneously providing approximately 1 billion DKK in loan guarantees.
"Investments through the Danish Climate Investment Fund, where public and capital works together, delivers both attractive returns to our members and as well as benefits Danish companies. This investment in Africa's largest wind park is an excellent example thereof, "says CEO Torben Möger Pedersen, PensionDanmark.
"It is an important milestone, we have reached, and I am really pleased that the Danish Climate Investment Fund contributes to delivering climate-friendly energy to aid Kenya's development," says Tommy Thomsen, CEO at IFU (Denmark's Investment Fund for Developing Coubtries).
365 Wind Turbines from Vestas
The wind farm will consist of 365 turbines spread across 160 square kilometers in the northern part of Kenya, close to Lake Turkana. The wind conditions at the location are ideal, as a very strong and consistent wind sweeps through the area, which provides high capacity utilization.
Vestas is supplying turbines of the V52-850 KW model that collectively will be able to produce energy that equals 15 % of Kenya's overall power supply.
Due to the remote location of the farm, 420 km of transmission lines will have to be constructed along with 300 km of transportation- and service roads. The construction has been initiated and it has to be completed, in order for it to be possible to set up the Vestas turbines, which will supply energy to the nation's power grid. The production of power is expected to begin in 2017.
The Biggest Investment for the Danish Climate Investment Fund
The Danish Climate Investment Fund was established in January 2014 in a public/private collaboration between PensionDanmark, the Danish Foreign Ministry, IFU (Denmark's Investment Fund for Developing Countries), and a number of other institutional investors. It's an all equity investment that is the biggest for the fund so far.
