Vestas Wind Systems Sells Stake in Lake Turkana Wind Power Project to BlackRock Partnership
Vestas Wind Systems has completed the sale of its 12.5% stake in the Lake Turkana Wind Power project in Kenya to a partnership managed by BlackRock, one of the world’s largest investment management firms. The Danish wind turbine manufacturer announced this move as part of its strategy to develop wind farms without long-term ownership.
The Climate Finance Partnership, a collaboration between BlackRock, the governments of France, Germany, and Japan, and impact-focused U.S. organizations, acquired Vestas’ stake in the project. This partnership aims to finance projects that promote climate-friendly initiatives.
The sale price of Vestas’ stake remains confidential, with the company stating that the transaction will have minimal impact on its earnings and future prospects.
Vestas has been involved in the Lake Turkana Wind Power project since 2014, contributing to its development, construction, and power generation. The project, featuring 365 Vestas turbines, generates electricity for about 1.2 million Kenyan homes, meeting around 14% of Kenya’s total electricity demand. Despite the divestment, Vestas will continue to provide service and maintenance for the turbines.
The sale of Vestas’ stake was facilitated through a sales process involving the Finnish Fund for Industrial Cooperation and the Danish Investment Fund for Developing Countries. Both organizations have also sold their shares to the Climate Finance Partnership.
With this divestment, Vestas further aligns its business strategy with a focus on wind farm development. The company remains committed to expanding its presence in the renewable energy sector and providing sustainable energy solutions globally.
Overall, this sale underscores the growing interest and investment in renewable energy projects in Africa. It highlights the significance of partnerships between governments, financial institutions, and companies in driving climate-friendly initiatives and fostering the global energy transition.
Analyst comment
Positive news. The sale of Vestas’ stake in the Lake Turkana Wind Power project to the Climate Finance Partnership, managed by BlackRock, highlights increasing interest and investment in renewable energy projects in Africa. This partnership supports climate-friendly initiatives and will have a minimal impact on Vestas’ earnings and future prospects. The market is expected to continue growing as more companies and institutions invest in renewable energy projects globally.
