By Vestas Wind Systems has successfully sold its 12.5% stake in the Lake Turkana Wind Power project in Kenya to a partnership managed by BlackRock. This move, completed as part of a plan outlined last year, marks a strategic decision for the Danish wind turbine manufacturer.
Project Involvement and Impact
Vestas has been a crucial shareholder in the Lake Turkana Wind Power project since 2014, supporting it through development, construction, and power generation phases. With 365 of its turbines generating electricity for 1.2 million Kenyan households, this accounts for around 14% of the country’s total electricity demand. Despite divesting its stake, Vestas will continue to provide service for the turbines to ensure smooth operations.
Strategic Divestment
In alignment with its strategy of wind farm development without long-term ownership, Vestas made the decision to sell its stake in the project. The sale process was conducted in collaboration with the Finnish Fund for Industrial Cooperation and the Danish Investment Fund for Developing Countries, who also divested their shares to the Climate Finance Partnership.
Climate Finance Partnership
The partnership managed by BlackRock, along with support from the governments of France, Germany, and Japan, as well as several impactful U.S. organizations, acquired the stakes from Vestas and other stakeholders. While the sale price remains undisclosed, Vestas assures that this transaction will have a negligible impact on its earnings and outlook.
Conclusion
The sale of Vestas’ stake in the Lake Turkana Wind Power project signifies a strategic shift in the company’s approach to wind farm development. With a continued commitment to excellence in service provision, Vestas remains a key player in the renewable energy sector.
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