Power producer KenGen to earn US$1.1m from 550,981 carbon credits sale

KENYAKenya Electricity Generating Company (KenGen) is set to benefit from its Clean Development Mechanism (CDM) Projects, earning an estimated KSh 119 million (US$1.1 million).

This follows the issuance of additional 309,495 Certified Emission Reductions (CERs) for KenGen’s Olkaria II CDM Project by the United Nations Framework Convention on Climate Change (UNFCCC), bringing the total amount of issued carbon credits to 550,981.

According to Rebecca Miano, KenGen Managing Director and CEO, climate change has become one of the biggest global environmental challenges and has created an urgent need for mitigating its effects.

She said KenGen has a dedicated team to spearhead environmental sustainability and reduce the effects of climate change.

KenGen has developed six CDM projects

“So far, we have developed and registered six 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&5 Geothermal Project and Ngong Wind,” she said.

These projects, she added, contribute to off-setting on an annual basis 1.5 million tonnes of Carbon Dioxide (C02) equivalent annually.

Out of this, 550,981 Tonnes of CO2e have already been issued by the UNFCCC and are now available for sale.

The sale process has been initiated as guided by the applicable disposal laws and regulations for the public sector organizations.

The CDM projects contribute to national sustainable development by providing clean energy, ensuring improved environmental quality, positive health impacts and increased productivity.

“By joining the below 1.5-degree global campaign, we are only reiterating our business as usual. We have shifted our investments to green and renewable energy and harnessing of low carbon sources of energy

Rebecca Miano – CEO, KenGen

CDM is designed as part of global concern to contribute to climate change mitigation and to foster sustainable development for non-industrialized countries.

KenGen has purposed to produce green energy, and currently, more than 86% of its power is from wind, hydro and geothermal.

As a way of enhancing its portfolio of climate change mitigation projects, KenGen intends to incorporate additional geothermal, wind and solar projects that will reduce between 100,000 to 600,000 carbon emissions every year, reducing the impact of climate change on the environment.

KenGen has an installed capacity of 1803 Megawatts (MW) made up of hydropower, geothermal, thermal and wind and receives credits for investing in renewable energy that displaces dirtier sources such as diesel in the national grid. The firm then sells these credits.

The firm has participated in the reduction of emissions from the atmosphere through the Clean Development Mechanism (CDM) under the Kyoto Protocol.

In June 2021, KenGen joined the UN-backed global campaign to fight global warming becoming the first public service agency in the country to join the initiative.

The campaign dubbed Business Ambition for 1.5°C, is backed by a global coalition of the United Nations leaders, business organizations and non-governmental organizations (NGOs).

By committing to this ambition, KenGen is expected to establish emission reduction targets through investments in green and clean energy that will go a long way in limiting the earth’s warming to 1.5°C as per the Paris Agreement of 2015.

Under this arrangement, the company commits to annually disclose its Greenhouse Gas (GHG) emissions as a way of checking and reducing its carbon footprint.

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