Google backs out of Investment plan in Vestas’ Lake Turkana Wind Farm

Google has stepped back from its intention to purchase stake in the Lake Turkana Wind Farm in Kenya, due to continued project delays.

As a result of Google’s action, Vestas Wind Systems is looking to sell 12.5% stake in the wind farm project.

According to a Bloomberg report, a change in contractors led to an extension of the wind farm project by 2 years.

Vestas additionally encountered financial constraints and land disputes along the 428km area caused additional delays.

Kenya’s government paid close to USD 90 million in compensation for the extended delays.

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Anders Riis, a spokesperson for Vestas said, “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.”

Vestas developed and supplied the turbines being used in the project at an estimated cost of US$679 million.

The wind farm is now fully operational and delivering sustainable energy.

If Google closed this deal, this would be its 2nd investment in renewable energy in Africa. The first being the Jasper solar Project in South Africa.