fbpx

Why Google Would Want To Invest In Lake Turkana Wind Power

Why Google Would Want To Invest In Lake Turkana Wind Power

Google is in discussions to invest potentially tens of millions of dollars in the Lake Turkana Wind Power Project, a wind farm under construction on 40,000 acres in Kenya that’s slated to be the largest in sub-Saharan Africa, according to a CNBC report.

Scheduled for completion in 2017, Lake Turkana is expected to deliver about 20 percent of all the electricity produced in the country. And with a price tag of $1 billion, the project needs money.

This won’t be the first time Google invests in African renewable energy.

From Fortune. Story by Katie Fehrenbacher.

Google has been interested in Kenya and greater Africa for awhile, and has offices across the continent. As many developed countries have brought almost their entire populations online, Google is keen to help connect the future of its Internet users who lack access to the Internet. The major resource that drives an Internet connection is an energy source.

This strategy informed Google’s Loon idea, which uses solar-powered balloons to create a floating Internet for off-grid Internet users. And it also leads into Google’s interest in energy in Africa, like this potential wind farm deal and its investment in the South African solar panel farm.

At an event earlier this year, Google’s vice president of energy John Woolard said that his “whole team is looking at the developing world and the 1.3 billion who don’t have access to electricity.” These are future Google customers and they need energy to access Google.

Woolard also noted at that event that when it comes to Google investing in clean energy projects, it can be “fairly forward leaning and take on some risk.” Some clean energy projects are riskier than others given the geography, partners and technology. Because Google isn’t a traditional energy investor, and has so much money, it can act a little differently and back riskier projects.

That applies to the Kenyan wind farm. At times the region has been under turmoil, and the project has faced a lot of issues as it’s been developed. One of it’s biggest needs right now is, not surprisingly, funding.

In that way, Google could also act as a lever for U.S. funding for the Lake Turkana wind farm. According to the report, Google’s investment could also help unlock a $250 million investment guarantee from the U.S. government’s development finance institution.

President Barack Obama has been encouraging U.S. investors to support 10 gigawatts of new energy for sub-Saharan Africa, but the U.S. funds can only be used if U.S. private investors are actively involved.

Read more at Fortune.