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Kipeto eyes new power deal to double electricity generation
Kipeto Energy becomes one of the early independent power generators seeking to ink fresh PPAs with Kenya Power, as the country races to avert a local power generation crisis.
Kipeto Energy Plc is seeking to double electricity generation of its plant to 200 megawatts with an eye on inking a new power purchase agreement (PPA) with Kenya Power.
Allan Munyua, the Chief Executive Officer of the firm disclosed the plans that will entail setting up of 18 new wind turbines. The current 100-MW plant has 60 turbines. It is unclear whether the firm will lease additional land for the project.
Kipeto currently has a 20-year PPA with Kenya Power for its plant located in Ngong Hills. The firm says that it is in talks with Kenya Power for a new PPA for the additional 100 megawatts that will be generated in the expanded plant.
Expansion plans of the 100 megawatts plant come days after Parliament lifted the moratorium on new PPAs, paving the way for Kenya Power to onboard new plants and negotiate PPAs with some of the current suppliers like Kipeto.
“We are looking to double the current production capacity of this wind farm and we are looking at presenting an attractive tariff to Kenya Power for the benefit of the consumer. We have a process to follow with Kenya Power and this is what we are doing. We see this (new deal) happening sooner than later,” Mr Munyua said.
A new PPA between Kipeto and Kenya Power will boost wind generated power in the national grid at a time the share dipped to 13.18 percent in the year ended June 2025 from 16.6 percent two years ago.
Kipeto currently has a 20-year PPA with Kenya Power, having started supplying electricity to the national grid in 2021. It supplied 404 gigawatt-hours (GWh) of electricity to Kenya Power in the year ended June 2024, valued at Sh7.159 billion. This was a fall from the 466 GWh worth Sh14.39 billion supplied the previous year.
The power producer is majority owned by Meridiam, which is backed by Proparco— the private sector arm of the Agence Française de Développement. Kenya-based Craftskills Wind Energy International Limited owns the remaining share.
There are three wind power plants linked to the national grid. The third one is a 25.5MW owned by KenGen.
Kipeto Energy becomes one of the early independent power generators seeking to ink fresh PPAs with Kenya Power, as the country races to avert a local power generation crisis.
Kenya Power has in recent years been forced to increasingly lean on Ethiopia and Uganda to shore up supplies and avert a countrywide power rationing amid the freeze on new PPAs.
The share of electricity imports more than doubled to 10.06 percent or 1.53 billion kilowatt-hours (kWh) in the year ended June, from 4.87 percent in June 2023 and one percent in 2021.
Kenya Power has not signed any new PPA since 2018 following the freeze which was imposed amid a probe into the existing deals that were blamed for exorbitant wholesale prices.
Members of Parliament lifted the moratorium on Wednesday but with conditions that include capping on wholesale prices in new PPAs at $0.07 (Sh9.05) per kWh.
Capping of the prices is meant to ensure that consumers get affordable electricity, easing the burden of power bills on households and operational costs on firms.
