This archive report was first published on 22 September 2021.
East Africa Breweries Limited (EABL) is set to make a significant shift towards green energy, aiming to stop using Kenya Power electricity by 2030 under a Sh22 billion investment plan.
According to KBL managing director John Musunga, the brewer is targeting 100% renewable electricity in all its facilities by 2030, with the investment also including the production of biofuel.
The plan, which will be rolled out at the start of next year, represents the single largest climate action investment by Diageo across Sub-Saharan Africa.
Under the plan, EABL targets to generate at least 9.3 megawatts at its Ruaraka plant and 2.4-megawatt from solar power in Kisumu, reducing carbon emissions by 95% and creating over 900 direct and indirect jobs throughout the supply chain.
Mr. Musunga noted that the investment is already being partly implemented in the Kisumu plant, with 10% of the current electricity requirements being met by renewable energy from solar.
The shift to solar power by heavy consumers has pushed Kenya Power into a deeper dilemma, with power generators raising production amid reduced consumption by homes and businesses in the wake of Covid-19.
Payments for idle electricity are a pass-on cost to consumers thanks to a take-or-pay clause contained in contracts signed between the government and power producers, compelling Kenya Power to buy the agreed amount of electricity regardless of need.
