BlackRock Alternatives is backing a public-private partnership to purchase a 31.25% stake in Africa’s largest wind farm, Lake Turkana Wind Power.
- BlackRock—along with governments of France, Japan, Germany, and U.S. impact organizations—make up the Climate Finance Partnership (CFP).
- The partnership has plans to acquire the equity stakes in Vestas, the Investment Fund for Developing Countries, and Finnfund.
- The CFP aims to develop climate infrastructure to facilitate a quick transition to a net-zero economy. The partnership has around $673 million in commitments, Bloomberg reports.
- The Lake Turkana Wind Power deal is the first private-market investment into Africa, according to BlackRock.
- The wind farm, located in northern Kenya, produces around 310 megawatts of power. A single megawatt can power between 400 and 900 homes in a year.
Why it’s news
The new investment into Lake Turkana will boost Kenya’s plan to make its energy sources fully renewable by 2030. Right now, the country has 92% renewable energy. The eastern African nation has a goal of net-zero emissions by 2050 and is pushing renewable energy and planting forests to achieve that goal.
The CFP focuses particularly on developing economies, saying many are more susceptible to climate risks.
“Developing economies are most vulnerable to the impacts of climate change,” head of BlackRock Alternatives climate infrastructure David Giordano says. “CFP’s unique blended model brings together the public and private sectors to accelerate institutional investment into clean energy in emerging markets.”