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Wind power firm
Hunderwear
#1 Posted : Thursday, October 13, 2011 2:12:23 PM
Rank: Member


Joined: 4/14/2011
Posts: 639
Hey wazuans am in the process of establishing a firm that wil use wind turbines to generate electricity.Am in a partnership with some foreigners who have been in the business for long.We want to register a company to carry on the business.What are the requirements of registering the company now that foreigners are involved.Any contribution is welcome
Chaka
#2 Posted : Thursday, October 13, 2011 4:17:06 PM
Rank: Elder


Joined: 2/16/2007
Posts: 2,114
Sorry, I don't have any info that help you but will you be doing this with the intention of selling to KP?
Hunderwear
#3 Posted : Thursday, October 13, 2011 6:57:35 PM
Rank: Member


Joined: 4/14/2011
Posts: 639
Chaka wrote:
Sorry, I don't have any info that help you but will you be doing this with the intention of selling to KP?

No we target industries and we got two companies already
incognito
#4 Posted : Friday, October 14, 2011 9:21:16 AM
Rank: Member


Joined: 6/29/2011
Posts: 233
Hunderwear wrote:
Hey wazuans am in the process of establishing a firm that wil use wind turbines to generate electricity.Am in a partnership with some foreigners who have been in the business for long.We want to register a company to carry on the business.What are the requirements of registering the company now that foreigners are involved.Any contribution is welcome


I have worked in the energy industry for sometime (IPPs to be exact). The first thing is do a proper feasibility study (Which i believe you might have done). The study will help you come up with wind roses for that area and wind speeds/velocities that will determine the viability of the wind farm. What is the capacity of the wind farm?

Second, get a proper wind turbine manufacturer e.g vestas (Danish). Present them with study report and they will design or recommend a suitable turbine for you.

For the establishment of the wind farm in kenya as an IPP (Indepedent power producer) you will need the following:
1. PPA- Power purchase agreement with KPLC. This document will indicate the rate at which you will supply the grid with power. It will also indicate how many years, what happens after decommisioning, How your payment will be structured (Capacity,availability...etc)...etc
2. Generation license from ERC. -I am not sure but ERC may issue this license based on its 5 year Least Cost Power Development Plan (LCPDP) See: http://www.erc.go.ke/erc/LCPDP.pdf
3. NEMA license: You have to carry out an Environmental Social Impact Assesment study in the area that you intend to put up the wind farm. Seeing as windfarms cover huge areas of land, you will need to show that it will not affect flora and fauna significantly. That means if there are migratory birds in the area you will have to mitigate the effect of the turbines on their migratory behaviour.
Once you convince NEMA that you can mitigate whatever impacts there are. Then the all important NEMA license will be issued. I believe this license is like a condition precedence when it comes to getting the PPA and generation license.

Other documents are the usual Incorporation certificates business permits..etc...etc that are required to establish the company before you embark on getting the three major licenses listed above.

Now that there are foreigners involved i would advise you to visit Kenya Investment authorities office. They will take you through the whole process and will even do follow up to see how the project goes.
Excelsior
guru267
#5 Posted : Saturday, October 15, 2011 11:32:35 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Hunderwear wrote:
Chaka wrote:
Sorry, I don't have any info that help you but will you be doing this with the intention of selling to KP?

No we target industries and we got two companies already


How do you plan on by-passing Kenya Power??

I thought they were the sole distributor of power in kenya?
Mark 12:29
Deuteronomy 4:16
Hunderwear
#6 Posted : Saturday, October 15, 2011 3:43:43 PM
Rank: Member


Joined: 4/14/2011
Posts: 639
incognito wrote:
Hunderwear wrote:
Hey wazuans am in the process of establishing a firm that wil use wind turbines to generate electricity.Am in a partnership with some foreigners who have been in the business for long.We want to register a company to carry on the business.What are the requirements of registering the company now that foreigners are involved.Any contribution is welcome


I have worked in the energy industry for sometime (IPPs to be exact). The first thing is do a proper feasibility study (Which i believe you might have done). The study will help you come up with wind roses for that area and wind speeds/velocities that will determine the viability of the wind farm. What is the capacity of the wind farm?

Second, get a proper wind turbine manufacturer e.g vestas (Danish). Present them with study report and they will design or recommend a suitable turbine for you.

For the establishment of the wind farm in kenya as an IPP (Indepedent power producer) you will need the following:
1. PPA- Power purchase agreement with KPLC. This document will indicate the rate at which you will supply the grid with power. It will also indicate how many years, what happens after decommisioning, How your payment will be structured (Capacity,availability...etc)...etc
2. Generation license from ERC. -I am not sure but ERC may issue this license based on its 5 year Least Cost Power Development Plan (LCPDP) See: http://www.erc.go.ke/erc/LCPDP.pdf
3. NEMA license: You have to carry out an Environmental Social Impact Assesment study in the area that you intend to put up the wind farm. Seeing as windfarms cover huge areas of land, you will need to show that it will not affect flora and fauna significantly. That means if there are migratory birds in the area you will have to mitigate the effect of the turbines on their migratory behaviour.
Once you convince NEMA that you can mitigate whatever impacts there are. Then the all important NEMA license will be issued. I believe this license is like a condition precedence when it comes to getting the PPA and generation license.

Other documents are the usual Incorporation certificates business permits..etc...etc that are required to establish the company before you embark on getting the three major licenses listed above.

Now that there are foreigners involved i would advise you to visit Kenya Investment authorities office. They will take you through the whole process and will even do follow up to see how the project goes.

very helpful incognito,feasibility study already done and since a foreign co. is involvd we noticed we requird to register a local corporation.@guru we dont require kplc as the project wil be owned by the industry and operated as the stand by generators
guru267
#7 Posted : Sunday, October 16, 2011 3:41:12 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@hunderwear which one is it??

Hunderwear wrote:
Chaka wrote:
Sorry, I don't have any info that help you but will you be doing this with the intention of selling to KP?

No we target industries and we got two companies already


Do you target the indusries?

Hunderwear wrote:
@guru we dont require kplc as the project wil be owned by the industry and operated as the stand by generators


Or are you owned by the industries??


Mark 12:29
Deuteronomy 4:16
Mainat
#8 Posted : Sunday, October 16, 2011 6:58:45 PM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
Hunderwear-great idea and hope it pays off. I can pt to one or two very good corporate lawyers. Wacha email
Sehemu ndio nyumba
Hunderwear
#9 Posted : Sunday, October 16, 2011 7:39:55 PM
Rank: Member


Joined: 4/14/2011
Posts: 639
Mainat wrote:
Hunderwear-great idea and hope it pays off. I can pt to one or two very good corporate lawyers. Wacha email

hunderwear(at)gmaildot com.Thanks
Chaka
#10 Posted : Monday, October 17, 2011 10:57:43 AM
Rank: Elder


Joined: 2/16/2007
Posts: 2,114
Hunderwear wrote:
[
very helpful incognito,feasibility study already done and since a foreign co. is involvd we noticed we requird to register a local corporation.@guru we dont require kplc as the project wil be owned by the industry and operated as the stand by generators


How much KVA can one turbine produce?
incognito
#11 Posted : Monday, October 17, 2011 12:18:21 PM
Rank: Member


Joined: 6/29/2011
Posts: 233
guru267 wrote:
Hunderwear wrote:
Chaka wrote:
Sorry, I don't have any info that help you but will you be doing this with the intention of selling to KP?

No we target industries and we got two companies already


How do you plan on by-passing Kenya Power??

I thought they were the sole distributor of power in kenya?


Cant the ERC give a transmission and distribution license as well as a generation license? There was that tiny Hydro Power project in Murang'a...i believe the owners are doing all: i.e generation, transmission and distribution. I have seen this in Uganda, in a small town called Arua. It has its own power plant with a capacity of about 1.2 MW...they transmit and distribute.
Excelsior
incognito
#12 Posted : Monday, October 17, 2011 12:23:15 PM
Rank: Member


Joined: 6/29/2011
Posts: 233
Chaka wrote:
Hunderwear wrote:
[
very helpful incognito,feasibility study already done and since a foreign co. is involvd we noticed we requird to register a local corporation.@guru we dont require kplc as the project wil be owned by the industry and operated as the stand by generators


How much KVA can one turbine produce?


The capacity of the vestas wind turbines being used in that 300MW Turkana wind power project is about 1MW. That means they will have to put up about 300+ wind turbines because they have to over generate slightly to take care of generation losses and parasitic load before delivery to the grid.

I believe the biggest capacity wind turbine is 8MW
Excelsior
india
#13 Posted : Monday, October 17, 2011 3:24:15 PM
Rank: Member


Joined: 9/13/2007
Posts: 44
@Uwear,
The following are procedures that shall apply in the implementation of the Feed-in-Tariff.
a) Private investors who wish to become power producers shall send an expression of interest (EOI) to the Ministry of Energy. The EOI shall include preliminary information such as the renewable energy source to be used, location in the country where the power plant is to be located, proposed installed capacity, indicative tariff, expected duration of plant development and any other information that the private investors wishes to disclose to facilitate decision making.
b) A Feed-in-Tariff Committee comprising representatives of the Ministry of Energy, the grid operator (KPLC) and the Energy Regulator (ERC) will review the EOI. The purpose of the review is to determine how the proposed power plant can be integrated into the national power development plan and estimate suitability of proposed power plant location for interconnection including interconnection facilities and costs.
c) The results of the review shall be communicated to the private investor by the Feedin-Tariff Committee within three months from the date of receipt of the EOI. The EOI may be accepted or rejected and where it is rejected, the reason for the rejection shall be provided.
d) Where the EOI is accepted and no further studies are required, the applicant shall be asked to provide a detailed proposal describing the technical and financial viability of the project, proposed financing arrangements, etc.
e) Where the EOI is accepted, the applicant shall be notified and given non-renewable rights of first refusal for the use of the same technology for power generation at the same location for a period of two years.
f) Where the EOI is accepted and further studies need to be carried out to determine project viability, the applicant shall be given 12 months to carry out and conclude the studies. Progress report shall be provided to the Feed-in-Tariff Committee after 6 months. Where the 6 months progress report shows that the project is not viable within the feed-in tariffs, the a project shall be abandoned and the rights of refusal will lapse.
g) Where the detailed proposal received under (d) or feasibility studies carried out under (e) confirms that the project is viable within the feed-in tariffs, the applicant shall be given another 6 months to conclude the studies and project development including engineering design, financing arrangements, and PPA (standard) negotiations with the grid operators etc.
h) Construction works of all projects to be implemented under the Feed-in-Tariff system shall commence within 6 months from the date of the signing of the PPA. The project shall be completed and commissioned within a period of 24 months from the date of the signing of the PPA.

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