KenGen to earn Sh118m from Olkaria II clean development project
Friday, October 16th, 2020
Kenya Electricity Generating Company (KenGen) is set to earn about $1,100,960 (Sh118 million) in the next seven years from the Olkaria II Clean Development Mechanism (CDM) Project.
The move follows a decision by United Nations Framework Convention on Climate Change (UNFCCC) to renew the power plant’s expansion of CDM Project.
KenGen chief executive Rebecca Miano said with estimated certified emission reductions (CER) of 78,640 tonnes CO2 equivalent per annum, it expects 550,480 tonnes CO2 equivalent with potential earnings of $1,100,960 based on a conservative market value of $2/tonne of CER during the extended period, up to 2024.
The Olkaria II Geothermal Expansion Project was meant to increase the capacity of the existing Olkaria II Geothermal Power Plant by adding a third power generation unit with a capacity of 35MW.
It contributes towards greenhouse gas (GHG) emission reductions by displacing fossil fuel-based electricity in the Kenyan grid with clean geothermal power.
The project also provides clean energy and power availability in the rural areas, thus creating more opportunities for job creation and improved livelihoods.
Miano said the company’s CDM programme was based on the UNFCCC, with guidelines for the scheme centered on its Kyoto protocol that enables developing countries like Kenya to implement green projects that contribute to carbon emission reduction.
The sale of CERs generated by the project will boost the production of clean energy in the country, while communities living near the company’s installations will benefit from projects funded by carbon revenues.
CDM was developed as part of the output of a global concern to contribute to climate change mitigation and to foster sustainable development for non-industrialised countries.