This archive report was first published on 25 August 2021.
August 25, 2021
Kenya Electricity Generating Company PLC (KenGen) has made significant strides in climate action in Africa with the issuance of additional carbon credits for its Olkaria I, Units 4 and 5 Geothermal Power plant.
The United Nations Framework Convention on Climate Change (UNFCCC) issued an additional 2,040,515 Carbon Emission Reductions (CERs) for the Naivasha-based project, bringing the total amount of carbon credits issued to KenGen to 2,591,496 tonnes of Carbon Dioxide Equivalent (CO2e) valued at USD 3,887,244.
The sale process of the carbon credits has been initiated as guided by the applicable disposal laws and regulations for public sector organizations.
The 140MW Olkaria I Additional Units 4 and 5 power plant will reduce CO2 emissions through the displacement of electricity generated by fossil fuel-fired power plants connected to the national grid.
KenGen Managing Director and CEO, Mrs. Rebecca Miano, announced the issuance of the CERs, stating that it is an affirmation of KenGen's commitment to addressing climate change, one of the biggest global environmental challenges currently.
“KenGen has set up a dedicated team that is spearheading environmental sustainability to help combat climate change. So far, we have developed and registered six (6) Clean Development Mechanism (CDM) Projects, comprising of Olkaria II Geothermal Expansion Project, Redevelopment of Tana Hydro Power Station Project, Optimisation of Kiambere Hydro Power Project, Olkaria IV Geothermal Project, Olkaria I Units 4 and 5 Geothermal Project, and Ngong Wind,” Mrs. Miano said.
These projects contribute to offsetting approximately 1.5 million tonnes of Carbon Dioxide (CO2) equivalent annually, according to Mrs. Miano.
At the same time, KenGen, listed on the Nairobi Securities Exchange (NSE), is poised to earn about Ksh.119 million from the 550,981 carbon credits that were issued as at July 2021.
KenGen has deliberately shifted its strategy to focus on the production of green energy, with more than 86% of the energy produced by the Company coming from clean sources, namely wind, hydro, and geothermal.
Thanks to KenGen's efforts, Kenya is today Africa's largest geothermal energy producer and among the top 10 in the world, with an estimated potential of 10,000MW of geothermal along the Rift Valley.
As a way of enhancing its portfolio of climate change mitigation projects, the Company intends to incorporate additional geothermal, wind, and solar projects, which will further reduce carbon emissions annually, in the process reducing the impact of climate change on the environment.
