infrahub.africa

Background

In 2008, Kenyan developer Crafskills conceived the Kipeto wind power project with the aim of generating 100MW of clean energy – enough to power 250,000 homes. From the start, Crafskills engaged extensively with local Maasai communities, resulting in a wind project that has improved their living conditions, provided them with a reliable income stream and allowed them to continue their traditional agricultural practices. The wind farm was constructed and officially connected to the Kenyan national grid in July 2021 with a 20 year Power Purchase Agreement with Kenya’s national utility company, Kenya Power & Light Company (KPLC). Consisting of 60 wind turbines and 17km of transmission lines, it is Kenya’s second largest wind farm. The wind farm is operated by Kipeto Energy PLC (KEP), initially owned 88% by BTE Renewables and 12% by Crafskills.

Approach

Crafskills held initial meetings with local communities in the early stages of Kipeto wind farm’s development process. To ensure inclusive and respectful consultations, they visited homes and the traditional ‘manyattas’ to explain the project, solicit the views, interest and concerns of the landowner’s individually as well as in public gatherings. Time was taken to learn the names of the residents, their children and extended families who hold rights on the plots, and the local Maasai culture and institutions were taken into account. Crafskills’ investors supported this approach, and went on to establish a formal Community Implementation Committee (CIC) that ensured representation from all stakeholder groups, including women, elders and youth. KEP negotiated and entered into individual lease agreements with over 30 landowner families who directly benefit from the revenues generated from the turbines through lease payments. Over the years, the project has been supported by a series of international investors including General Electric, the International Finance Corporation, African Infrastructure Investment Managers and Meridiam.

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Environmental Impact

The wind farm generates 100MW of clean and renewable electrical energy, which offsets approximately 12,000 tonnes of carbon dioxide each year. A Biodiversity Action Plan has been developed in collaboration with Kenya Wildlife Service, the National Museums of Kenya, Ornithologists and other Avifauna NGOs. This aims for “net-gain” in critically endangered vulture species (Ruppell’s and White-backed vultures) and reduced human-wildlife conflicts. To protect vultures and other raptor species, biodiversity monitors are stationed at different vantage points to identify when priority species are flying towards a turbine, and signal to the control centre to shut it down until the bird has safely passed (a process called “shut down on demand”). The observer teams monitor bird activity daily throughout the year, greatly reducing raptor deaths. To reduce human-wildlife conflicts, Kipeto has constructed seven predator-proof bomas for livestock within the windfarm and its surrounding areas. Other approaches to improve biodiversity include carcass removal, radio tracking and anti-poisoning campaigns within the community.

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Success Factors

The use of an inclusive approach that fosters constructive and open dialogue between the project and all local partners and communities characterized by respect for local culture and governance structures was central in building community support. Also, funding support like those from the United States Development Finance Corporation who provided over $230m of external debt financing and The Nature Conservancy’s innovative nature-based loan towards KEP’s biodiversity programme have been instrumental to its success. The KEP equally benefited from consistent support from the Government of Kenya.

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Evidence

The project created local jobs for over 900 workers during the construction phase, more than 500 of which were from the local community. Kipeto now has more than 50 employees, the majority of whom are from the community working as engineers, biodiversity monitors, community liaison officers and social engagement coordinators.

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Evolution

In June 2023, the Kipeto Community Development Trust was established, where 5% of the funds available to shareholders are allocated to the Trust throughout the lifespan of the Kipeto wind project to allow the community to define its own path forward and protect themselves against environmental challenges like climate change. In the same year, Meridiam acquired Actis’s BTE Renewables and now owns the 100 MW Kipeto Wind Farm with local community actions and stakeholders remaining in place.

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Challenges

The possibility of a new technology to monitor vulture species may potentially make the local biodiversity monitors redundant. Also, inadequate understanding of landowners about the mechanisms for calculation and sharing of benefits/cost with KEP potentially hampers sustainability.

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