UNIDO commits Sh159 million to green energy project
UNIDO commits Sh159 million to green energy project
The project is expected to generate additional power for the country via solar energy, biomass, wind and biogas.
The United Nations Industrial Development Organisation (UNIDO) has committed Sh159 million to a green energy project called Lighting Up Kenya, which is expected to generate additional power for the country via solar energy, biomass, wind and biogas.
The investment, meant to add more than 100 megawatts of power to the national grid, is aimed at reducing the cost of doing business in Kenya, said Yoshiteru Uramoto, UNIDO deputy director general.
“The cost of production is high in Kenya especially when manufacturers use fossil fuel to run their machines. We can reduce this cost by using alternative energy,” said Mr Uramoto.
Kenya’s manufacturing sector and small businesses are facing a possible energy crisis following the shutting down of a hydro power plant last week due to inadequate water for electricity generation.
Manufacturers blame the high cost of locally produced goods on the high electricity cost.
Kenya has a total installed capacity of 1,200 megawatts with a generation mix of 56 per cent hydro, 36 per cent thermal, and eight per cent geo-thermal, but this is under threat following a prolonged drought that is stressing hydro power dams.
The country’s hydro-electricity generation capacity stands at 700 MW, but electricity generator KenGen says this has reduced by 12 per cent due to inadequate rainfall.
Prime Minister Raila Odinga named a team to fast track expansion of power generation and use of clean and renewable sources of energy such as wind, solar, biomass and biogas.
According to government plans, more than 2,000 megawatts will be added to the national grid with the use of green energy.
This is in line with the UN’s green energy projects and recommendations that countries in Africa should focus on generating power from wind and solar power.
Most of such projects are beginning to take off in Kenya’s outlying districts where communities have put up solar and wind plants that pump up about 100 megawatts of electricity for use in lighting up homes.
Next month President Kibaki is expected to launch a bio-diesel strategy that will help the country produce adequate amounts of renewable fuel by the year 2012.
The Industrialization ministry says the UNIDO funds, allocated for community electricity generation, can help bridge supply shortfalls following the shutting of the 40 megawatts Masinga Power Station after water levels went down, making the plant unable to sustain power generation.
“The money from UNIDO is particularly important during this time when we have lost a power plant due to lack of water. Our manufacturing sector could face difficulties if we don’t get alternative sources of electricity,” said Industrialisation minister Henry Kosgey.
Local manufacturers plan to cut their electricity consumption so as to conserve the available power to last longer.
The allocation from UNIDO will go to independent community power centres in Kirinyaga, Siaya, Murang’a, Kiambu, Machakos and Bungoma.
“Kenya’s electricity generation capacity, especially in rural areas, is huge. This can help the country especially following the closure of a hydro electricity plant because of lack of water,” said Mr Uramoto.
According to the United Nations, Kenya has capacity to generate more than 3,000 megawatts of electricity if the country taps into wind energy in its vast northern districts.
Potential investors
The wind energy could help inject additional power to the national grid to alleviate fears of the manufacturing sector and potential investors who have grown cold feet in putting their money in Kenya.
The Nairobi based United Nations Environmental Programme (UNEP) says the country has adequate wind to generate energy for both export and domestic use, adding that it can reduce its cost of energy by taping into the clean and efficient energy provided by its vast northern district fields.
The UN’s estimate of an existing capacity to generate 3,000 megawatts could spur renewed hope in the manufacturing sector that has complained of high electricity costs which have been caused partly by the volatile price of crude oil in the international markets.
The UN says if Kenya tapped into wind energy it would avoid the massive power rationing experienced in 2000. The power shortage was blamed on inadequate rainfall and failure to implement planned generation projects on schedule.
Compared to regional countries, Kenya has a large manufacturing sector serving both the local
market and export markets. According to the Economic Survey 2009, the sector contributed about 10 per cent of the GDP in 2008.
In May, the Africa Development Bank (ADB) injected Sh32 billion into a private consortium to develop an initial 300MW from wind energy in Turkana district — equal to around 25 per cent Kenya’s current installed energy capacity.
This follows the Government’s introduction of new legislation covering electricity generation.