Page 14 - AfrElec Week 11 2023

AfrElec NEWS IN BRIEF AfrElec

Investors in Special country’s carbon footprint by 25%. compared to what is paid to the state-owned
Last year, TAQA won five lots in Morocco’s
generator KenGen.
Economic Zones in Kenya solar programme, Noor PV II, to produce Kenya decried the skewed contracts and the
The Electricity Consumers Society of
96MW of solar power. In addition, the firm
have until March 31 plans to install 200MW of wind turbines to fact that the IPPs are paid in foreign currency
while consumers pay in Kenya shillings.“We
be added to the already installed 100MW in
Kenya Special Economic Zones Authority northern Morocco. must find out why the IPPs signed skewed
says investors interested in setting up factories TAQA’s operations in Morocco represent contracts for their selfish gains at the expense
in its two new special economic zones in the 19% of the installed capacity in the North of the ordinary Kenyans.
coastal city of Mombasa and the Rift Valley African country and provide 38% of its This is unacceptable and we must get
town of Naivasha have until the end of March electricity needs. to the root of this,” said Senator Wahome
to express their interest, according to its Morocco’s renewable energy plan aims Wamatinga, the chair of the Senate Energy
statement on Monday, March 6. to more than double its renewable energy Committee that is doing the probe.But
Kenya says it has set up public special production to 12 GW – representing 52% of the MPs will find it difficult to change the
economic zones that include 3,000 acres total power capacity – by 2030, from a current prevailing situation as they have to wait for the
(1,214 hectares) in Dongo Kundu, Mombasa level of 5 GW, or 40% of capacity. contracts signed by IPPs and Kenya Power to
and 1,000 acres (405 ha) in Naivasha, where expire otherwise the utility may be sued for
investors can acquire long-term leases. costly compensation.
“The Dongo Kundu SEZ is located in the Piedmont Lithium shares A probe ordered last year by then
historical Mombasa shipping hub connecting President Uhuru Kenyatta found that some
Africa to the world. The zone is adjacent to rebound after losses contracts between Kenya Power and the
an international airport, a regional railway IPPs are unrealistic and may have been
terminus and a seaport,” the authority said in sparked by short-seller signed in an environment of corruption.
a statement. IPPs generate about 30% of total electricity
It said Dongo Kundu provides prime report on Ghana mine in Kenya according to Energy and Petroleum
investment opportunities in agro-processing, Regulatory Authority. The new government
cotton, textiles and apparel, pharmaceuticals, Piedmont Lithium Inc’s shares rebounded recently lifted a moratorium imposed last year
automotive manufacturing and assembly, from early losses on Wednesday (March 8) on licensing new IPPs.
blue economy, water desalination and service following allegations of corruption by Blue
provision, green energy and renewables, heavy Orca Capital, which alleged that mining
metals and steel, petrochemicals, oil and gas, licences in Ghana obtained by Atlantic Red Sea Wind Energy
transport and logistics, warehousing, cargo Lithium were through what appeared to be
bulk-breaking and consolidation and business “textbook corruption,” Reuters reports. partners secure $501mn
support. In 2021, NASDAQ-listed Piedmont
The Naivasha SEZ is located at the heart invested $100mn in London-listed Atlantic loan to build 500-MW wind
of the scenic Great Rift Valley, adjacent to Lithium to secure spodumene, a high-purity
a major highway and railway network hub lithium ore, from Atlantic’s Ewoyaa and farm on Gulf of Suez
connecting Kenya to the East and Central Chirano mines in Ghana. Piedmont has a
African countries. It has a dedicated Inland spodumene supply agreement with Elon Red Sea Wind Energy, a joint venture of
Container Depot (Dry Port). The zone is close Musk’s electric vehicle maker Tesla. Japan’s Toyota Tsusho and its subsidiary Eurus
to geothermal power sources. The investment Shares of the company were up 3.2% after Energy, France’s Engie and Egypt’s Orascom
opportunities available at Naivasha SEZ are falling as much as 6.6% on the Blue Orca Construction, has obtained $501mn loan
cotton, textiles and apparel, paper and paper report, which alleged Atlantic obtained key from a multinational banking consortium to
products, green energy, iron and steel. Ghana mining licences by making secret build a 500-MW wind farm on the banks of
payments and promises of payments to a the Gulf of Suez.
Abu Dhabi’s TAQA invests high-level local politician’s family, Reuters operation (JBIC) is providing $240mn
The Japan Bank for International Co-
writes.
$1.6bn in Morocco’s green Currently valued at $1bn, Piedmont in towards the loan facility, with the remainder
extended by the European Bank for
January amended its deal with Tesla to supply
energy projects spodumene concentrate, an essential material Reconstruction and Development (EBRD),
SMBC, Norinchukin Bank and Société
for making batteries to the EV maker through
Abu Dhabi National Energy Company TAQA 2025. Générale. The commercial banks’ portion of
said it will invest $1.6bn in Morocco’s green the loan is being covered by Nippon Export
energy projects by 2030 by implementing Kenya parliament starts and Investment Insurance (Nexi), Japan’s
a number of projects including a seawater official export credit insurer.
desalination facility to help resolve water investigating 11 IPPs over Red Sea Wind Energy has an offtake
supply shortage, TAQA’s head Abdul Majeed agreement with Egyptian Electricity
Eraqi said in a statement on Tuesday (March alleged corrupt contracts Transmission Co. (EETC) to buy electricity
7). generated from the wind farm project during
Moroccan minister of equipment and Kenya MPs have started an investigation the plant’s 25-year lifespan. Construction is to
water, Nizar Baraka, said that the country will into 11 independent power producers (IPPs) begin this month and commercial operations
use conventional and unconventional water over lopsided contracts with national utility are slated to commence in August 2025, with a
sources to meet water shortage and drought Kenya Power, the Daily Nation reports. total project cost of around $600mn.
challenges by 2023, adding that nearly 1,000 Kenyans have been shocked by the amount The project is part of the Egyptian
MW of renewables will be added to Morocco’s of money paid to IPPs with some getting government’s target of sourcing 35% of its
energy mix. The strategy aims to reduce the 10 times the payment per unit of electricity energy from renewable sources by the end of

P14 www. NEWSBASE .com Week 11 15•March•2023