Jointly with twelve European development finance institutions, Swedfund owns the co-financing facility, ICCF (Interact Climate Change Facility), which focuses on financing renewable energy projects in Africa and other places. The co-ownership makes larger investments possible, with wide-ranging expert knowledge in the areas of sustainability and effective financing.
European development finance institutions are responsible for a significant part of all investment in renewable energy in Sub-Saharan Africa. The Lake Turkana Wind Power Project is an example of what can be achieved when we join forces. In autumn 2016, Swedfund contributed an additional SEK 68 million of long-term loan capital to ICCF, part of which is helping finance Africa’s largest wind farm. Complex investments in infrastructure are always challenging. If we are to implement sustainable investments, it is essential that non-financial factors, such as the needs of local people, are treated as an integral part of the project
Significant environmental and social effects
Shortage of electricity and chronic outages in the existing network are harming Kenya’s competitiveness and growth. In response, the Kenyan government launched a large-scale investment programme in 2013, with the goal of increasing installed capacity from 1664 MW to 6664 MW over a four-year period.
An important part of the programme is the utilisation of renewable sources such as solar, wind, hydro and geothermal energy. Kenya, in common with most other African countries, has good technical conditions for increasing the share of renewable energy generation. And development finance institutions such as Swedfund can actively contribute to economic and social growth by investing in projects of this type.
365 turbins meet 20% of the demand
The largest single investment in renewable electricity generation in Kenya is the Lake Turkana Wind Power Project. The 162-square kilometre windfarm in the Great Rift Valley in north-western Kenya is expected to be fully operational during 2017. The 365-turbine windfarm has a total production capacity equivalent to 20 percent of Kenya’s current energy requirements. Over and above the turbines, a 436-kilometre transmission cable is being constructed between the windfarm and Nairobi.
The windfarm will employ 200 people, and the environmental effect will be significant. Clean and cheap electricity generated by wind turbines is expected to reduce carbon dioxide emissions by 382,000 tonnes per year, which is equivalent to the emissions of over 100,000 cars.
ICCF=Interact Climate Change Facility
• 45 million people
• Relatively well developed economy, with agriculture at its core
• Tourism is a significant business sector
• Consisting of over 40 different ethnic groups