Background

Kipeto (also known as Kipeto Energy PLC or KEP) is a 100MW onshore wind farm in Kenya. The second largest wind farm in the country, it consists of 60 General Electric (GE) turbines, generating about 432 GWh of power annually and a key supplier to the electricity grid serving the Nairobi economic corridor.

Kipeto is an Independent Power Producer (IPP) with a 20-year power purchase agreement with the Kenya Power and Lighting Company (KPLC), Kenya’s national utility. Kipeto started commercial operations in July 2021.

Meridiam is in the process of completing the acquisition of an 88% shareholding in KEP from Actis, while a minority interest of 12% will remain with Cratsfkills, the original developers of the project based in Kenya.

Stage:

Acquisition signed, pending CP satisfaction

ESG/SDG Key Facts:

Kipeto has undertaken a number of initiatives with the local communities including building 84 new homes for the landowners, creating over 400 jobs and training over 200 people during the construction phase. 5% of the company’s annual turnover is given to a Community Trust Fund.

Kipeto has also implemented a state-of-the-art Biodiversity Action Plan (BAP) which includes an innovative Shut Down on Demand (SDoD) system to temporarily shut down specific turbines when birds are spotted. This allows to avoid collisions and significantly reduces negative impact on the avifauna. The company also funds conservation and restoration initiatives in the surrounding area.

An ESG DD report was compiled by WSP for Meridiam with no material issues identified. An Environmental and Social Management Plan and Environmental and Social Management System have been developed for the project.