Friday, July 19, 2024

KenGen to Earn Ksh118 Million from Clean Development Mechanism Project


Kenya’s leading energy producer KenGen is set to earn about USD 1,100,960 (about Ks 118million) in the next seven years from the Olkaria II Clean Development Mechanism (CDM) Project.

This is after a decision made by the United Nations Framework Convention on Climate Change (UNFCCC) to renew the power plant’s expansion CDM Project.

“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.” Said Mrs. Rebecca Miano, KenGen Managing Director &CEO.

The project was developed as part of the output of a global concern to contribute to climate change mitigation and to contribute to national sustainable development by providing clean energy which ensures improved environmental quality, positive health impacts and increased productivity.

It is also set to increase power availability while creating more opportunities for expanded rural electrification with far-reaching impacts on job creation and improved livelihoods.

Mrs. Miano adds that the company’s CDM programme was based on the UNFCCC, and 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.

Since 2016, the mechanism has already registered more than 1,650 projects and is anticipated to produce certified emissions reductions (CERs) amounting to more than 2.9 billion tonnes of CO2 equivalent in the first commitment period of the Kyoto Protocol, 2008–2012. 

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.

The CERs sales generated from this project will not only boost the production of clean energy in the country but also benefit the communities living near the company’s through projects funded by carbon revenues.

 In 1985, KenGen established an environmental unit which has been responsible for monitoring environmental impacts, soil erosion prevention, project site rehabilitation, and pollution control.

The energy company 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.

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