Supports Kenya's Updated NDC (2020) target to abate GHG emissions by 32% by 2030, as well as the vision and objectives of the National Energy Policy (2018) and the Updated Least Cost Power Development Plan 2021-2030 (2021) of the Government, which focus on the provision of adequate, reliable and affordable power, including by encouraging the development of small hydro. By developing energy infrastructure, developer Kleen Hydro Limited is supporting the manufacturing and other development priorities outlined in the “Big Four” agenda (2018).
Construction work on a partially completed run-of-river hydroelectric power plant in eastern Kenya is under way thanks to a USD 200,000 development loan provided by REPP.
The 6MW project is located on the Rupingazi River in a rural part of Embu County on the south-eastern slopes of Mount Kenya. It was halted in February 2018 after Kenyan-based project developer Kleen Hydro Limited was unable to raise additional financing to continue construction.
At the time, it was one of the country’s most advanced mini-hydro projects under development – and when completed stands to contribute significantly towards Kenya’s NDC target to abate 30% of its greenhouse gas emissions by 2030.
Building work on the run-of-river hydroelectric power plant started again in November 2018 after Kleen finalised the project’s pre-construction development phase and agreed a new funding agreement from REPP in principle. Utilising the USD 200,000 provided under the technical assistance facility by REPP has enabled the developer to make progress on both the plant’s weir and canal.
Around 70 local jobs will be created at the height of the project’s construction phase and a further five during operation. The power plant will supply offtaker Kenya Power under the terms of a signed 20-year power purchase agreement.
The project is providing the sponsors with much-needed completion experience and successful closure will help them attract senior debt for its other pipeline projects. It is also demonstrating how – with REPP’s assistance – local developers can build and operate small-scale schemes that support Kenya’s renewable energy goals.
Contracted date: 15 April 2018
Lending type: Development loan
REPP funding: USD 200,000
REPP’s funding has enabled us to make substantial progress on what is one of the largest private renewable energy projects in the county, while at the same time elevating the living standards of our workforce and their families.- Rosemary Mugo, Director, Kleen Hydro Limited