Vestas Wind Systems is to sell 12.5% stake in Lake Turkana Wind farm after Google pulled out of purchase negotiations due to project delays. A communique from Vestas shows cancellation of their agreement with Google in 2019.
Bloomberg reports that contractors were changed extending the completion of the 310MW farm project by 2 years. Vestas says it encountered delays relating to transmission lines due to financial constraints on the part of the original contractor and land disputes along the 428km route.
However, the Kenyan government footed KSh 9.4 billion (€85.6 million) in compensation for the delays.
On their side, Vestas say their strategy does not include being a long-term wind park owner hence the search for potential buyers. Vestas developed and supplied turbines for the project at an estimated cost of KSh 67.9 billion ($679 million) that is now fully operational and delivering sustainable energy.
Had the deal sailed through it would be the Google’s second investment in renewable energy in Africa after the Jasper solar Project in South Africa.