HOMA Bay county government has signed a Sh12.6 billion solar energy production contract with a consortium of Canadian firms. Governor Cyprian Awiti said the project plans to increase the energy available to the grid besides generating revenue for the county.
"We are excited about this partnership and we will provide land for its construction," he said. Under the Memorandum of Understanding, the firms under Lakeside Solar will develop 50MW of solar plant in the county within the next one year.
Lakeside Solar is a consortium of Canadian Exporters and Engineers which includes Africa Energy Development Corporation, Eaton Cooper Solar Canada and Canadian Solar. Awiti said the project will solve frequent power outages in the county.
Zohrab Mawani, an official of the consortium said Lakeside Solar will work with the county government to explore optimal terms and options for financing the construction of the plant.
He said Lakeside solar had chosenthe county because of its good reputation overseas as an investor friendly environment. Mawani said the plant is expected to generate up to 120,000,000 kWh of electricity per year.
"The generated power will be sold to Kenya Power Company at a minimum step tariff of USD 0.16/kWh for the initial 10 years and USD 0.80/kWh thereafter for ten years," Mawani said.
He added: "The plant gross income for the initial ten years is USD 9.6M per annum and thereafter USD 4.8M." The useful life of the Plant is estimated at 25- 35 years, according to experts.