Toyota Kenya has announced an acquisition of 35% in solar installation firm Ofgen. The Competition Authority of Kenya (CAK) approved the deal which is set to deepen the auto firm’s interest in the growing clean energy market and offering an avenue to offset its carbon production.
Toyota Tsusho Group is increasingly investing in green energy, including solar power projects, to earn carbon credits. The Japanese multinational will use the credits to cut its carbon production from ventures like car manufacturing and boost the firm’s environment-friendly credentials. Ofgen has installed over 30 power plants for firms like Serena Hotels, Strathmore University and BAT in the companies’ efforts to cut reliance on electricity from Kenya Power.
“The Competition Authority of Kenya has approved the acquisition of a 35% equity stake in OFGEN Limited by CFAO Kenya Limited unconditionally, thereby enhancing investments in renewable energy in the country,” said CAK.
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Cheaper supply alternatives
Households and heavy-consuming industrialists in Kenya have over the past five years turned to solar, seeking reliable and cheaper supply alternatives to Kenya Power, which has also expressed interest in going into solar installation.
The purchase will open a new revenue source for the company targeting the country’s estimated solar potential of approximately 15,000 megawatts (MW). At the moment, the installed capacity is over 100MW led by the rural electrification programme’s off-grid power stations, Malindi Solar Group and Garissa Solar.
Toyota targeted Ofgen after it hired the company three years ago to instal a 490- panel roof-top solar plant at its headquarters on Mombasa Road in Nairobi with a power capacity of 180kW and an annual energy production of 230,000 kWh. The plant could save Toyota nearly Sh17 million in electricity bills over a period of 20 years and reduce their carbon footprint by 45 metric tonnes per year.
Toyota expanded the engagement with Ofgen, building more solar power systems on the roofs of offices in Uganda, converting approximately one-third of its power use to renewable energy. The firm then decided to get into the business of solar power engineering, procurement, and construction for commercial and industrial firms through Ofgen.
Founded in 2014, Ofgen has built and financed over 30 on-grid and off-grid solar plants across Kenya, Uganda, Rwanda, and South Sudan markets. Besides Toyota, some of its leading clients include Williamson Tea, Fairmont Hotels, Grain Bulk, Kenya Airways, Serena, Strathmore, Kenya Ports Authority, Glaxosmithkline and BAT.
[…] Toyota Kenya has announced an acquisition of 35% in solar installation firm Ofgen. The Competition Authority of Kenya (CAK) approved the deal which is set to deepen the auto firm’s interest in the growing clean energy market and offering an avenue to offset its carbon production. Toyota Tsusho Group is increasingly investing in green energy, including solar power projects, to earn carbon credits. The Japanese multinational will use the credits to cut its carbon… Read More… […]