REPP signs first project
Renewable Energy Performance Platform signs first project
London, 12 September 2016 – The Renewable Energy Performance Platform (REPP), launched at the beginning of this year, has signed a Support Agreement for its first project. The project comprises two run-of-the-river mini-hydro power plants, in the Murang’a and Bungoma counties of Kenya, which are being jointly developed by Virunga Power and local community organizations. Once fully developed, the project will have a total combined capacity of 10 MW of clean energy generation which will be supplied to the Kenyan national grid. In addition, the project will also supply power to the local rural community either through a mini-grid or expansion of the current national power grid to surrounding communities.
With the REPP’s support, the project will provide electrification to local communities that will enable sustainable development and a range of positive community benefits. The nature of the support that the REPP will provide to Virunga Power is built around early stage technical assistance during the developmental phases of the projects, as well as assistance with financial structuring.
Geoff Sinclair, REPP Manager and MD of Camco Clean Energy, said: “Small scale and distributed renewable energy makes sense for many African countries and REPP is helping to create the conditions for it to really take off. We are pleased to be working with Virunga Power and helping them to grow into a leading supplier of power to East African communities.”
“Although Kenya has a growing economy and an expanding renewables portfolio, the Virunga project brings the benefits of green investment to an under-developed rural area and, hopefully, the demonstration effect of this project can enable further electrification of rural Kenya and its neighbours”, noted Dr Jussi Nykänen, CEO of GreenStream Network Ltd.
Brian Kelly, the MD of Virunga Power Limited, said in response: “Support from REPP will enable Virunga Power to expand its unique portfolio of utility-scale rural renewable energy projects in East Africa. By working with rural communities to translate their locally available renewable resources into a source of low-cost, reliable power, Virunga Power and REPP will be stimulating rural economic growth through productive-use electrification and clean energy for the grid.”
About Virunga Power
Virunga Power, founding partner of the US Power Africa’s Beyond-the-Grid initiative, is a utility development firm, based in Nairobi. The company is focused on developing, owning and operating 1 to 10 MW grid connected and off-grid renewable energy projects in the East African region, with a longer term goal of creating an African rural utility.
REPP has been set up with the support of the European Investment Bank and United Nations Environment Programme. As an innovative climate finance initiative, REPP’s purpose is to provide support to African renewable energy projects smaller than 25MW, to enable them to reach financial close and commence construction.
The REPP “toolbox” includes:
- Technical assistance and due diligence services;
- Access to risk mitigation instruments provided by REPP partners;
- Access to long-term lending from both public and private sector sources and assistance with financial structuring; and
- Results-based finance, in certain limited circumstances, to ensure that viable projects are able to reach financial close.
For more information, please visit the REPP website at: www.repp-africa.org