BlackRock’s CFP fund buys stake in 310MW wind farm in Kenya

17 March 2023
BlackRock’s CFP fund buys stake in 310MW wind farm in Kenya

Climate Finance Partnership (CFP), a fund managed by BlackRock Alternatives, has acquired a 31.25% stake in Lake Turkana Wind Power, a 310MW wind farm in Kenya.

The stake has been acquired from Vestas, Finnfund and the Investment Fund for Developing Countries for an undisclosed sum.

Located in Kenya’s far north region, the Lake Turkana Wind Power facility is equipped with 365 wind turbines, according to a regulatory filing published in the Kenyan press.

The regulatory filing described the stake as ‘controlling’, but BlackRock said this was as defined by Kenya’s energy law, rather than in the typical sense of a controlling or majority stake.

In 2018, the project was linked to the Kenyan national grid, according to Renewables Now.

The wind farm has a 20-year power purchase agreement (PPA) in place with Kenya Power and Lighting Company.

Referring to Kenya’s power distribution company, BlackRock said: “The LTWP project provides reliable, low-cost energy to Kenya’s national grid via a 20-year power purchase agreement with Kenya Power.”

The company added that the power facility will meet the energy requirements of more than three million people.

Lake Turkana Wind Power is understood to be BlackRock Alternatives’ first private investment in any African country.

Completion of the deal is subject to the receipt of regulatory approvals.

CFP focuses on emerging market climate infrastructure and consists of BlackRock and the French, German and Japanese governments, as well as some organisations in the US.

Last November, BlackRock Alternatives reached an agreement with EnCap Investments to buy Jupiter Power, a US-based energy storage developer.

Jupiter specialises in developing large-scale, stand-alone energy storage projects that can offer grid support and renewable integration as part of the energy transition.

The company has a 655MWh portfolio of commercially operating, utility-scale battery energy storage projects.

The financial details of the deal were not disclosed.

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