Kengen Set to Earn Kes 118 Million from Olkaria II Clean Development Mechanism Project.
Kenya Electricity Generating Company (KenGen) is set to earn about USD 1,100,960 (Kes 118 million) in the next seven years from the Olkaria II Clean Development Mechanism (CDM) Project.
This follows a decision by the United Nations Framework Convention on Climate Change (UNFCCC) to renew the power plant’s expansion CDM Project.
With estimated certified emission reductions (CERs) of 78,640 metric tonnes CO2 equivalent per annum, KenGen expects 550,480.00 metric tonnes CO2 equivalent with potential earnings of USD 1,100,960.00 based on a conservative market value of 2USD/ton of CER during the extended period, up to 2024.
Speaking on the extension, KenGen Managing Director and CEO, Rebecca Miano, said the objective of the Olkaria II Geothermal Expansion Project was to increase the capacity of the existing Olkaria II Geothermal Power Plant by adding a third power generation unit with a capacity of 35MW.
The project, she further stated, contributes towards greenhouse gas (GHG) emission reductions by displacing fossil fuel-based electricity in the Kenyan grid with clean geothermal power. ¨It will contribute to national sustainable development by providing clean energy which ensures improved environmental quality, positive health impacts and increased productivity.¨ She said.
Adding that, ¨It will also increase power availability while creating more opportunities for expanded rural electrification with far-reaching impacts on job creation and improved livelihoods.¨
Mrs. Miano said the company’s CDM programme was based on the UNFCCC, noting that the guidelines for the scheme were centered on the UNFCCC’s Kyoto protocol that enables developing countries like Kenya to implement green projects that contribute to carbon emission reduction.
While the sale of the CERs generated by the project will boost the production of clean energy in the country, communities living near the company’s installations will also 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-industrialized countries.
In 1985, KenGen established an environmental unit which has been responsible for monitoring environmental impacts, soil erosion prevention, project site rehabilitation, and pollution control.
KenGen has been focusing on the production of green energy and 86 percent of the energy produced by the company is from clean sources namely wind, hydro and geothermal.