Lake Turkana Wind Power Station

Lake Turkana Wind Power Project
Location Loyangalani, Marsabit County, Kenya
Coordinates 02°43′33″N 36°48′06″E / 2.72583°N 36.80167°E / 2.72583; 36.80167Coordinates: 02°43′33″N 36°48′06″E / 2.72583°N 36.80167°E / 2.72583; 36.80167
Status Under construction
Commission date 2018 (Expected)
Owner(s) Lake Turkana Wind Power Limited
Power generation
Units operational 365
Nameplate capacity 310.25 megawatts (416,050 hp)

The Lake Turkana Wind Power Project (LTWP) is the single largest private investment in Kenya’s history. The wind farm covers 40,000 acres (162 km ²) and is located in Loiyangalani District, Marsabit County. The Ksh70 billion wind farm aims to provide 310MW of reliable, low cost wind power to Kenya’s national grid, equivalent to approximately 17 per cent of the country’s current installed electricity generating capacity. On completion, the project will comprise 365 wind turbines, each with a capacity of 850 kW; the associated overhead electric grid collection system and a high voltage substation that will be connected to the national grid. The power produced will be bought at a fixed price by Kenya Power (KPLC) over a 20-year period in accordance with the Power Purchase Agreement (PPA) with the latter. The project proponent is the LTWP consortium comprising KP&P Africa B.V. and Aldwych International as co-developers, Industrial Fund for Developing Countries (IFU), Vestas East Africa Limited (Vestas), Finnish Fund for Industrial Cooperation Ltd (Finnfund), KLP Norfund Investment AS (KLP Norfund) and Sandpiper.


The date of completion has been delayed due to community, lender, social & environmental issues. These include: the opposition of local tribal inhabitants in the Sarima region; the filing of a lawsuit at Meru High Court regarding land titles in 2014;[1] and the World Bank withdrawing its support in October 2012.[2]

Location

The wind farm will be located approximately 50 kilometres (31 mi), north of the town of South Horr, in Loyangalani sub-county, in the extreme western part of Marsabit County, in the former Eastern Province.[3] This location lies approximately 230 kilometres (140 mi), by road, northwest of Marsabit, where the county headquarters are located.[4] The approximate coordinates of the wind farm will be:2°43'33.0"N, 36°48'06.0"E (Latitude:2.725833; Longitude:36.801667).[5] The project is planned on indigenous pastoralist land. The tribes that communally own land in this area include El Molo, Rendille, Samburu, Turkana and other indigenous and pastoralist communities in the South-East of Marsabit County.[6]

Specification

The wind farm site, covers approximately 40,000 acres (160 km2). The farm will have 365 turbines each with capacity of 850 kW.[7] The power generated from the wind turbines will be transmitted via overhead electric cables to a substation which will be located on the premises. From the substation, power will be evacuated via 400kV high voltage electric cables to a substation in Suswa, approximately 600 kilometres (370 mi), south of Loyangalani,[8] where it will be integrated into the national power grid. The electricity will be bought by Kenya Power Company at a fixed price for 20 years from the time of commissioning. As part of the development, the road from Laisamis to the project site, a distance of approximately 240 kilometres (150 mi),[9] is slated to be upgraded.[3] Construction began in 2015 and full operation to commence in 2018.[10] As of April 2015, construction has begun. The first 90 MW is expected online in October 2016 with full commissioning of the full 300MW is planned for July 2017.[11]

History

LTWP was created in 2006 out of the partnering of Anset Africa Limited (a company involved in project development and management in the areas of tourism, biogas energy, telecommunications, solid waste management, and road construction) and KP&P (a company that develops and operates wind energy projects). In 2005, discussions with the Kenyan government began regarding the development of a wind power project near to Lake Turkana and as a result, extensive wind assessments were conducted. Later in 2007 environmental fieldwork was undertaken.[12] A Memorandum of Understanding (MOU) was signed between LTWP and Kenya Power on 10 April 2008.[13] Land permits IR Number 6395/1 (L.R. 28031) and IR Number 6396/1 (L.R. 28031/2) were signed with the Kenyan government in March 2009[14] which caused problems when local communities only came to know the plans in April 2014.[1] Construction began in 2015 and is expected to be complete in 2018.[3] In March 2016, the first shipment of 30 wind turbines arrived in the country, in anticipation of the first 50MW coming online in September 2016.[15]

Developers and funding

The company that owns and is developing the wind farm is called Lake Turkana Wind Power Limited. The consortium which owns LTWP Limited includes the following entities:[3]

Equity partners
Financial partners

The lead arranger for the US$853.12 million syndicated financing package is the African Development Bank, with Standard Bank and Nedbank Capital of South Africa as co-arrangers.[18] The following have provided financing to the project.[3][19]

Donors

The following entities made outright donations to the project:[19]

Transmission line and substation

In 2010, the Spanish government offered to finance the construction of a 427 km double circuit transmission line southwards from the site to Suswa, approximately 100 km west of Nairobi. The $150 million offer[21] comprises:

This means that the Kenya Electricity Transmission Company (KETRACO), a Government-owned entity created in 2008,[22] will also partly fund the transmission line and the substation by means of a tolling arrangement with Kenya Power. Spanish company Isolux Corsán won a $208.1 million tender for this construction.[23]

World Bank pulls out of project

LTWP suffered a setback in 2012 when the World Bank withdrew its support for the project.[2] Bank officials allegedly had concerns that the electricity produced would outweigh demand.[24] The World Bank Group’s country director in Kenya, Mr. Johannes Zutt, stated that Kenya could be left with excess power on the grid worth up to Sh8.5 billion (equivalent to $100 million) per year.[25] Originally, the project was expected to be fully operational by the end of 2014.[26] From the project perspective, the withdrawal of the World Bank could be seen in a positive light as it allowed LTWP to move forward to financial close.[27] A source at power transmission firm Ketraco indicated that the agency was happy with the World Bank’s decision to quit. "We are happy that the World Bank has withdrawn. They were putting a lot of hurdles in our way but now we can go ahead."[28] Another commentator noted that "This is the third project in Kenya the World Bank has sabotaged in the last six years citing feeble excuses" and "[a]ll is not lost however... as 'the African [Development] Bank is now looking at ways of getting other guarantors to ensure the project does not delay further,' local media reported."[29]

Economic impacts

LTWP will be the largest single private investment in Kenya at the time it is made. LTWP claims the wind farm will reduce and possibly eliminate Kenya's dependency on diesel and heavy fuel power stations, however, this claim is unsubstantiated. Fuel imports to fire up these thermal power stations, costs the Kenyan taxpayer US$150 million (KES:17 billion) annually.[7] It is anticipated that the project will contribute KES:3 billion (US$35 million) annually, and KES:58.6 billion (US$673 million), in tax revenue over a period 20 years. During construction, approximately 2,500 workers will be hired. Once commissioned, the power station will employ 200 full-time staff.[3][10]

Despite these apparent benefits the LTWP appears to offer Kenya, evidence highlighted below suggests that overall the project could be negative for the Kenyan Government, citizens, KETRACO and Kenya Power.

Impacts on Kenyan State and consumers

The Project is of significant strategic benefit to Kenya, and at Ksh70 billion (€625 million) will be the largest single private investment in Kenya’s history. With a power tariff of Euro 7.52cents per kWh, LTWP is one of the lowest power tariffs in Kenya along with geothermal power. It is estimated that Kenya will save up to $120 million a year in fuel cost displacement cost by reducing reliance on diesel power plants. LTWP’s contract (Power Purchase Agreement) with government-owned Kenya Power obliges the utility to buy all electricity produced by the wind farm, even if it is not needed, or if more economic electricity sources are available; "The power produced will be bought at a fixed price by Kenya Power (KPLC) over a 20-year period in accordance with the signed Power Purchase Agreement (PPA)."[30]

Furthermore, the Kenyan Government has signed guarantees with LTWP to cover costs in case Kenya Power cannot afford to pay for excess electricity for the duration of the PPA.[31] In order to mitigate this risk the African Development Fund has provided a 'partial risk guarantee' up to the value of €20 million.[32] The Kenyan Government is also liable for losses incurred by delay due to political causes or project failure.[31] These costs, as well as the expenses for the transmission line, are therefore likely be passed on to Kenyan taxpayers and electricity consumers on top of the electricity produced and result in higher prices for electricity users than current rates.

Grid stability

The LTWP project is of such a large scale that it will provide up to 20% of the Kenyan power grid’s capacity to absorb wind energy.[33] It is generally accepted in wind technology research that intermittent resources can destabilise a small grid such as that in Kenya, especially if it is concentrated all in one location. Denmark has over 19% wind power (wind capacity of 4,885MW) connected to the grid, but this capacity is supplied across thousands of projects. While LTWP aims to provide 310MW of reliable, low cost wind power to the Kenya national grid, equivalent to approximately 18% of Kenya’ current installed electricity generating capacity, Currently,Kenya has a total installed capacity of 2,300 MW, largely being generated by hydro (46.3%) and thermal (37.4%). The Government targets to increase generating capacity to 6,762MW in 2017. Kenya also plans to change the energy generation mix, with a view of reducing dependency on hydro and thermal. LTWP will play a key role in balancing the energy generation mix.

Meru High Court lawsuit

Local Turkana communities filed a lawsuit against LTWP in October 2014 at Meru High Court, Kenya to nullify the titles obtained by the company and return the land to its original status as community land. Sagana, Biriq & Co. represent the communities in the ongoing court case.[34] In November 2016 Justice Peter Njoroge of the Meru High Court rejected the application filed by Marsabit residents, requesting the court to stop the Wind Power project[35]

Criticisms

Indigenous rights issues

LTWP project does not comply with national, international and regional laws that protect indigenous rights (see UN Declaration on the Rights of Indigenous Peoples and Article 2 of the Kenyan Constitution[36]). The project will occupy 162 km2 of communally owned land that belongs to indigenous pastoralist tribes held in trust by the local authority for the use of the inhabitants. The private individual land titles obtained by LTWP are considered illegal by the Sarima Indigenous Peoples' Land Forum. Furthermore, LTWP use terra nullius rationale to deny that communities have legal right or claim to the land and are therefore not eligible for land compensation:[37]

"The Sirima [sic] village is located within the proposed LTWP wind farm site previously designated Trust Land and now leased to LTWP, under a 33 year term, renewable up to 99 years. Under the previous designation 'Trust Land' it was managed under the District administration for an on behalf of the community. Consequently, the PAPs [Project Affected Persons] \ nomadic pastoralist have customary rights of use to land pastures, however have no recognisable legal right or claim to the land other than use and are therefore not eligible for land compensation."[38]

Additionally, the UN Indigenous Right to Free, Prior and Informed Consent has been violated by LTWP as communities in the affected region only came to know of the project plans in April 2014; permits to survey areas were signed in 2005 and the Letter of Allotment that privatised the land in the name of LTWP was signed in March 2009. Only in 2009 did LTWP begin to conduct community engagement and consultation after various permits and agreements had already been signed.[1][39]

Social and Environmental Impacts

Negative social and environmental impacts have also been highlighted in LTWP’s own Environmental and Social Impact Assessment (ESIA) which would have serious implications for the social, cultural, economic and political well-being of the communities affected.

LTWP documents detail plans for the construction of a new "camp" for 2,500 construction site workers. LTWP states that these workers will be employed local workers, trained for the job. However, this part of Northern Kenya lacks enough people to provide the labour so LTWP will need to employ most of these workers from outside the local area.[40]

According to the ESIA, there are a number of potential negative local impacts due to the arrival of the 2,500 workers, and the construction work in general. These include: cultural contamination; increased risk of HIV/AIDS, malaria and bilzharia; increased insecurity and community conflicts; challenges of labour force management; increased accidents and occupational hazards; increase in antisocial behavior such as theft, alcohol consumption, production of illegal brews, and the introduction of commercial sex; long-term erosion of normal community life; increased demand for wood resources in an area with an already "acute shortage"; sanitation and waste disposal problems; decreased livestock grazing area.[41]

Conflict

The Sarima Indigenous Peoples' Land Forum (SIPLF) accuses LTWP of deploying "... aggressive divide-and-rule tactics", using "community members of one tribe to oppose other community members who were demanding more information, more transparency, and a truly participatory and community-based process." "To prevent or undermine uncomfortable questions, consortium representatives promised contracts and jobs to some local elites. When activists unveiled the theft of community land and filed the lawsuit [at Meru High Court], LTWP responded again..."[42] For example, "[o]f the 29 workers watching the two wind towers, 26 are Samburu, whereas only three are Turkana."[43]

Sarima Indigenous Peoples' Land Forum

In February 2015, the inter-tribal Sarima Indigenous Peoples’ Land Forum (SIPLF) was created as an attempt to bring indigenous communities together in order to stop the wind power project. The Forum is named after the village of Sarima that is to be displaced by the project. In their Declaration of 7th February 2015 the SIPLF states:

“The El Molo, Rendille, Samburu, Turkana and other indigenous and pastoralist communities of Laisamis Constituency and Karare Ward, in Marsabit County, Northern Kenya, reject the illegal privatization of 150,000 acres of our ancestral land by the European consortium ‘Lake Turkana Wind Power Ltd.’ (LTWP).”[44] [emphasis added]

The SIPLF are not against wind farm development, if there are benefits seen:

"We are not against establishing a wind power project. We know the power of the wind in our ancestral lands, and we want it to contribute to the sustainable development of our communities, the Marsabit County and Kenya as a whole. We are determined to make this happen on the basis of our communities’ ownership and leadership. We won’t allow the theft of our land under any circumstance."[44] [emphasis added]

Contrary to documents produced by LTWP about the cultural sensitivity of the project, SIPLF claims that "LTWP representatives have expressed, in actions and words, their complete contempt for our region and for our communities’ rich environment and cultures. Carlo Van Wageningen, one of the founders of LTWP, expressed this poor perception in eloquent terms:

"If you were to see some of the images of our wind site, of our site, I would say it reminds me of the pictures I used to see of the moon. Every hill is a crater, it’s old lava flows and lava rock everywhere, and it is very windy. There is absolutely nothing there, there is no infrastructure, there are no electrical connections, there are no roads, there is no way to host anyone unless you put them in a tent, so we have to build everything.[45]""

Further evidence of this attitude is provided by a Mr. Parker in a May 2015 Wall Street Journal article;[46] "You are at a huge distance from civilization…" he says.

See also

References

  1. 1 2 3 Sarima Indigenous Peoples’ Land Forum: Background, http://siplf.org/en/Background/
  2. 1 2 World Bank, ‘Project tobedroppedKENYA: Lake Turkana Wind Project’, 2012, http://www.worldbank.org/projects/P128163/kenya-lake-turkana-wind-project?lang=en
  3. 1 2 3 4 5 6 LTWP (31 August 2014). "Lake Turkana Wind Power Station: Project Profile". Lake Turkana Wind Power (LTWP). Retrieved 18 February 2015.
  4. ↑ "Approximate Road Distance Between Marsabit And Lake Turkana Wind Farm With Interactive Map". Globefed.com. Retrieved 18 February 2015.
  5. ↑ Google, . "Approximate Location of Lake Turkana Wind Power Station At Google Maps". Google Maps. Retrieved 18 February 2015.
  6. ↑ Minority Rights Group International, Kenya: Minorities, Indigenous Peoples and Ethnic Diversity, 2005, p.16, http://www.minorityrights.org/download.php@id=147
  7. 1 2 Gachiri, John (17 December 2014). "Danish Firm Says 365 Turkana Turbines Order Largest In Its History". The EastAfrican (Nairobi). Retrieved 18 February 2015.
  8. ↑ "Road Distance Between Loyangalani And Suswa With Interactive Map". Globefeed.com. Retrieved 18 February 2015.
  9. ↑ "Road Distance Between Laisamis And Loyangalani With Map". Globefeed.com. Retrieved 18 February 2015.
  10. 1 2 Court, Alex (29 January 2015). "Will Africa's Biggest Wind Power Project Transform Kenya's Growth?". Cable News Network. Retrieved 18 February 2015.
  11. ↑ Mbogo, Steve (18 April 2015). "Works On 300MW Turkana Wind Farm Start". The EastAfrican (Nairobi). Retrieved 25 April 2015.
  12. ↑ Lake Turkana Wind Power, Updated Environmental and Social Impact Assessment Study Report, 2011, p.2 http://www.eib.org/infocentre/register/all/53222536.pdf; Lake Turkana Wind Power, Environmental and Social Impact Assessment Study Report, 2009, pp.13-14
  13. ↑ Lake Turkana Wind Power, Updated Environmental and Social Impact Assessment Study Report, 2011, p.2 http://www.eib.org/infocentre/register/all/53222536.pdf
  14. ↑ Lake Turkana Wind Power, Environmental and Social Impact Assessment Study Report, 2009, pp.1-2, p.30
  15. ↑ Otuki, Neville (2 March 2016). "Lake Turkana Wind Power receives first turbine shipment". Business Daily Africa. Nairobi. Retrieved 2 March 2016.
  16. ↑ Press Release, . (24 March 2014). "Norfund: Investments - Lake Turkana Wind Project". Norfund. Retrieved 18 February 2015.
  17. ↑ Okuttah, Mark (20 October 2015). "Google eyes Sh4 Billion stake in Turkana wind power plant". Business Daily Africa. Nairobi. Retrieved 20 October 2015.
  18. ↑ Akumu, Washington (29 March 2014). "$858 Million Gets Lake Turkana Wind Power Plant Moving". The EastAfrican (Nairobi). Retrieved 18 February 2015.
  19. 1 2 Sponsor Wire, . (24 March 2014). "AfDB Convenes Lenders to Secure Kenya's Largest Private Sector Investment". African Development Bank via AllAfrica.com. Retrieved 18 February 2015.
  20. ↑ Senelwa, Kennedy (14 June 2014). "$250m for Lake Turkana Wind Power Project". The EastAfrican (Nairobi). Retrieved 18 February 2015.
  21. ↑ Jaindi Kisero, The East African, 'Spain gives giant Turkana Wind Power Project $150m funding', 1 March 2010: http://www.theeastafrican.co.ke/news/-/2558/870272/-/pumtl7z/-/
  22. ↑ Kenya Electricity Transmission Company: About Us: http://www.ketraco.co.ke/about/
  23. ↑ Judy Mwende, Kenya Construction Business Review, 'Isolux to build 400-kV transmission line in Kenya', 13 June 2011, http://www.constructionkenya.com/2107/isolux-to-build-400-kv-transmission-line-in-kenya/
  24. ↑ Matina Stevis, 'Lake Turkana wind farm project in Kenya faces headwinds', Wall Street Journal, May 2015 http://www.wsj.com/articles/lake-turkana-wind-farm-project-in-kenya-faces-headwinds-1430881511
  25. ↑ Zeddy Sambu and Muna Wahome, 'Kenya Power deal that forced World Bank out of wind farm', Business Daily Africa, October 2012, http://www.businessdailyafrica.com/Kenya-Power-deal-that-forced-World-Bank-out-of-wind-farm-/-/539546/1538602/-/tvegggz/-/
  26. ↑ Clar Ni Chonghaile, 'Kenya to host largest sub-Saharan Africa’s largest windfarm', The Guardian, March 2012, http://www.theguardian.com/global-development/2012/mar/28/kenya-to-host-largest-windfarm-turkana
  27. ↑ Akumu, Washington. "$858m gets Lake Turkana wind power plant moving", The East African, Nairobi, 29 March 2014. Retrieved on 26 June 2015.
  28. ↑ Zeddy Sambu and Muna Wahome, 'Kenya Power deal that forced World Bank out of wind farm', Business Daily Africa, October 2012, http://www.businessdailyafrica.com/Kenya-Power-deal-that-forced-World-Bank-out-of-wind-farm-/-/539546/1538602/-/item/1/-/50bmqa/-/index.html
  29. ↑ wa Kyendo, Musyoka. "Oh no! Not the World Bank again!", EAER Briefs, Nairobi, 21 October 2012. Retrieved on 26 June 2015.
  30. ↑ Archive.org, ‘Cached file of Lake Turkana Wind Power Project Profile’, https://web.archive.org/web/20141031200923/http://ltwp.co.ke/the-project/project-profile
  31. 1 2 Matina Stevis, 'Lake Turkana wind farm project in Kenya faces headwinds', Wall Street Journal, May 2015, www.wsj.com/articles/lake-turkana-wind-farm-project-in-kenya-faces-headwinds-1430881511
  32. ↑ Kaushik Ray, 'Lake Turkana Gets up to Speed', Project Finance International, 2015, http://www.pfie.com/lake-turkana-gets-up-to-speed/21178007.fullarticle
  33. ↑ David Malingha Doya, ‘Kenya Postpones Renewable Energy Drive to Reduce Power Costs’, Bloomberg News, 27 November 2013, http://www.bloomberg.com/news/articles/2013-11-26/kenya-suspends-licensing-new-wind-farms-solar-plants-until-2017; African Development Bank, 'Lake Turkana Wind Power Project Nominated Power Deal of the Year in 2014', December 2014, http://www.afdb.org/en/news-and-events/article/lake-turkana-wind-power-project-nominated-power-deal-of-the-year-in-2014-13886/
  34. ↑ Sarima Indigenous Peoples’ Land Forum: Background, http://siplf.org/en/Background/; Ali Abdi, ‘Sh75 billion Lake Turkana Wind Power project case adjourned to January 2015’, The Counties, 25 November 2014, http://www.standardmedia.co.ke/thecounties/article/2000142538/sh75-billion-lake-turkana-wind-power-project-case-adjourned-to-january-2015; James Mbaka, ‘Kenya: Locals Want Court to Halt Power Project’, The Star, 27 October 2014, http://allafrica.com/stories/201410272378.html
  35. ↑ http://www.nation.co.ke/counties/turkana/Court-declines-to-stop-Sh75bn-Lake-Turkana-wind-power-project/1183330-3446738-format-xhtml-npkbn5z/index.html.
  36. ↑ The Constitution of Kenya, 2010, http://kenyalaw.org/kl/index.php?id=398
  37. ↑ Lake Turkana Wind Power, Resettlement Action Plan, p.7; African Development Bank, Full Resettlement Action Plan Summary, November 2014, http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/RAP_summary_Sirima_Village_Lake_Turkana__Wind_Power_Project.pdf
  38. ↑ Lake Turkana Wind Power, Resettlement Action Plan, p.7
  39. ↑ Lake Turkana Wind Power, Environmental and Social Impact Assessment Study Report, 2009, pp.1-2, p.30; Lake Turkana Wind Power, Updated Environmental and Social Impact Assessment Study Report, 2011, p.2 http://www.eib.org/infocentre/register/all/53222536.pdf
  40. ↑ Lake Turkana Wind Power Project, Updated Environmental and Social Impact Assessment Study Report, 2011,pp.11-15 http://www.eib.org/infocentre/register/all/53222536.pdf; Lake Turkana Wind Power, Environmental and Social Impact Assessment Study Report, 2009, pp.87-95, http://www.kenyapower.co.ke/docs/LTWP%20ESIA%20updated_Report.pdf
  41. ↑ Lake Turkana Wind Power, Environmental and Social Impact Assessment Study Report, 2009, pp.87-95, http://www.kenyapower.co.ke/docs/LTWP%20ESIA%20updated_Report.pdf
  42. ↑ Sarima Indigenous Peoples’ Land Forum: Background, http://siplf.org/Background
  43. ↑ Truthout, Wind powers green growth in Kenya, but for whom? http://www.truth-out.org/news/item/29845-wind-powers-green-growth-in-kenya-but-for-whom
  44. 1 2 Sarima Indigenous Peoples’ Land Forum: Declaration, http://siplf.org/en/Our-Declaration/
  45. ↑ RTCC, 'Carlo van Wageningen talks about wind power in Africa', 2013, http://climatechange-tv.rtcc.org/2013/11/15/cop19-carlo-van-wageningen-talks-about-wind-power-in-africa
  46. ↑ Wall Street Journal, Lake Turkana wind farm project in Kenya faces headwinds, May 2015, http://www.wsj.com/articles/lake-turkana-wind-farm-project-in-kenya-faces-headwinds-1430881511
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