Energy producer, Kenya Electricity Generating Company (KenGen) is set to earn Sh118million 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 Sh118 million based on a conservative market value of 2USD/ton of CER during the extended period, up to 2024.
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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.
At the same time, it will also increase power availability while creating more opportunities for expanded rural electrification with far-reaching impacts on job creation and improved livelihoods.
Miano said the company’s CDM programme was based on the UNFCCC, adding 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 global concern to contribute to climate change mitigation and to foster sustainable development for non-industrialised countries.