United Nations Framework Convention on Climate Change (UNFCCC), Wednesday issued Kenya Electricity Generating Company PLC (KenGen) Carbon credits from its Olkaria I, Units 4 and 5 Geothermal Power plant further solidifying the company’s lead in climate action in Africa. This follows the issuance of an additional 2,040,515 Carbon Emission Reductions (CERs) for the Naivasha-based project by the United Nations Framework Convention on Climate Change (UNFCCC).
A carbon credit is a permit that allows the company to emit a certain amount of carbon dioxide or other greenhouse gases.
This now brings the number of carbon credits issued to KenGen to date to 2,591,496 tonnes of Carbon Dioxide Equivalent (CO2e) valued at USD. 3,887,244 which are now available for sale.
Announcing the issuance of the CERs, KenGen Managing Director and CEO, Mrs. Rebecca Miano said that the sale process of the carbon credits has been initiated as guided by the applicable disposal laws and regulations for the public sector organizations.
The 140MW Olkaria I Additional Units 4 and 5 power plant, she said will reduce CO2 emission through the displacement of electricity generated by fossil fuel-fired power plants connected to the national grid.
“The UNFCCC’s issuance of the carbon credits is an affirmation of KenGen’s commitment to addressing climate change which is one of the biggest global environmental challenges currently,” she noted.
Miano added that KenGen has set up a dedicated team that is spearheading environmental sustainability to help combat climate change and that so far they 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, Optimization of Kiambere Hydro Power Project, Olkaria IV Geothermal Project, Olkaria I Units 4 and 5 Geothermal Project and Ngong Wind.
“These projects together contribute to offsetting approximately 1.5 million tonnes of Carbon Dioxide (C02) equivalent annually,” she said.
Miano explained that the Olkaria IV Plant is currently undergoing a review process, which could see the issuance of an additional 2,025,813 CERs soon.
At the same time, she said that KenGen which is listed on the Nairobi Securities Exchange (NSE), is poised to earn about Sh.119 million from the 550,981 carbon credits that were issued as of July 2021.
The CDM projects contribute to national sustainable development by providing clean energy which ensures improved environmental quality, positive health impacts, and increased productivity. CDM was developed as part of the output of global concern to contribute to climate change mitigation and to foster sustainable development for non-industrialized countries.
KenGen, the MD noted has deliberately shifted its strategy to focus on the production of green energy, and currently, more than 86 percent of the energy produced by the Company is from clean sources namely wind, hydro and geothermal.
Kenya is today Africa’s largest geothermal energy producer and among the top 10 in the world, thanks to KenGen’s efforts as the country has 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.
Kenya Electricity Generating Company PLC – KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of more than 60 percent.
Today, KenGen PLC has an installed generation capacity of 1,818MW, of which over 86 percent is drawn from green sources namely: Hydro (826MW), Geothermal (713MW), Thermal (253MW), and Wind (26MW).