Nairobi — The government has approved plans by Gitson Energy Ltd to build 300 megawatts wind power plant at Bubisa in Marsabit.

The firm owned by Kenyans in Diaspora, is required by Ministry of Energy to complete detailed feasibility studies including the electricity transmission line and interconnection facilities.

According to Energy Permanent Secretary Patrick Nyoike Gitson is now required to complete detailed feasibility studies within eight months.

A similar plant is planned for Turkana by privately owned Turkana Windpower. The resultant 600MW from the two plants are expected to hugely cut power cost in the country.

Kenya relies heavily on fuel guzzling plants as hydro production heads south.

State-owned

"We have no control of the ownership of the proposed project site. It is therefore up to you to secure land rights for the wind farm," he said in a letter dated February 16.

The letter copied to the Energy Regulatory Commission and the Kenya Power and Lighting Company requested the two state-owned firms to assist the investor where necessary.

Gitson's communications director Cyrus Thairu said the firm will engage both parastatals on the project.

"We will start negotiating with KPLC the power purchase agreement to set price of selling electricity to the distributor and seek a power production licence from ERC," he said.

Gitson has submitted a power purchase agreement proposal to KPLC and is waiting for response. The firm has also secured a commitment of about Sh15 billion for building a power transmission line.

Transferring of electricity from Bubisa to KPLC customers will pose a challenge as the locality lacks a transmission line. If the proposed Kenya-Ethiopia transmission line is not completed in time, Gitson will spend more money to be linked to the national grid.

Green energy projects have become a major attraction for private equity.