BlackRock Fund acquires stake in Africa's largest wind farm.

BlackRock Fund acquires stake in Africa's largest wind farm.
Photo by Anna Jiménez Calaf / Unsplash

BlackRock's Climate Finance Partnership, a public-private finance fund, has acquired a 12.5 per cent stake in Kenya’s Lake Turkana Wind Power (LTWP) from Danish turbine manufacturer Vestas.

Why is this important: The 310-megawatt (MW) Lake Turkana Wind Power farm, which supplies renewable energy to Kenya's national grid, was up for sale in 2020 when Google committed to acquiring the same stake. However, the technology firm pulled out due to delays in the project relating to the transmission line.

Though the deal's value is unknown, the Climate Finance Partnership was keen to acquire 31.25% of the wind farm from other shareholders, including Finnfund, Finland’s development financier and IFU Denmark’s Investment Fund for Developing Countries.

The bottom line: Lake Turkana Wind Power (LTWP) built the €630 million wind farm through debt and equity and has experienced a lot of investment activities over the last year, including new investment from UK-based CFP UK Holdings acquisition worth Sh14.5 billion.