Vestas Wind Systems is shopping for a new buyer for its 12.5% stake in Africa’s largest wind farm after Google dropped plans to purchase it following project delays.
The Danish turbine manufacturer blamed the Alphabet unit’s decision to pull out on “delays relating primarily to the transmission line” for the US$679-million Lake Turkana Wind Power project in Kenya. The 310MW farm’s high-voltage link to the grid, scheduled for completion in October 2016, was delayed by two years after contractors were changed.
“As Vestas’ strategy doesn’t include being a long-term wind park owner, we’re currently in commercial dialogue with potential buyers of our shares,” spokesman Anders Riis said in an e-mailed response to questions.
LTWP would have been Google’s second renewable energy investment on the continent after the Jasper solar project in South Africa’s Northern Cape in 2013. Alphabet did not immediately respond to an e-mail seeking comment.
The Kenyan wind power park cost 620 million euros ($679 million). The Kenyan government was forced to pay 85.6 million euros in compensation to LTWP for the delays. — Reported by David Herbling, (c) 2020 Bloomberg LP