Vestas, a leading wind turbine manufacturer, has finalized the sale of its 12.5 percent stake in Lake Turkana Wind Power (LTWP) based in Kenya. The shares have been purchased by the Climate Finance Partnership (CFP), overseen by investment giant BlackRock.
This acquisition follows CFP’s announcement in March 2023 expressing its interest in acquiring Vestas’ shares in LTWP, although the specific financial terms of the deal remain undisclosed.
The LTWP wind farm, boasting a capacity of 310 MW, retains its status as the largest wind farm in Africa. Vestas has been a stakeholder in LTWP since 2014, participating in its development, construction, and subsequent power generation phases.
The project integrated into Kenya’s national grid in 2018, with 365 Vestas turbines generating electricity for approximately 1.2 million Kenyan households, meeting approximately 14 percent of the country’s total electricity demand. Vestas will continue to provide maintenance services for the turbines, each boasting a capacity of 850 kilowatts.
Beyond its primary function of power generation, the LTWP project has contributed to the socio-economic development of local communities, facilitating improved infrastructure such as roads and generating employment opportunities.
Vestas’ decision to divest its stake aligns with its strategic approach of developing wind farms without retaining long-term ownership. The sale process was conducted in collaboration with the Finnish Fund for Industrial Cooperation Ltd. (Finnfund) and the Danish Investment Fund for Developing Countries (IFU), both of whom have also sold their respective shares in LTWP to CFP.
The transaction is not expected to have a significant impact on Vestas’ earnings or future prospects, affirming the company’s commitment to advancing renewable energy initiatives while optimizing its portfolio for sustainable growth.