AFREPREN/FWD - Energy, Environment and Development Network for Africa Website
The US African Development Foundation (USADF), All On and other partners are calling on Nigerian energy developers to apply for the Off-Grid Energy Challenge. The Challenge is aimed at identifying innovative off-grid solutions to ‘power up’ underserved areas in Nigeria and will provide awards of up to $100,000 per enterprise.Applicants should be developing, scaling up or extending energy technologies to off-grid areas of Nigeria. To be considered for the Challenge, applicants must be 100% African-owned, majority Nigerian-owned and managed private companies registered in Nigeria, and must be operating in Nigeria. According to the Vanguard, USADF said: “Over the next three years, both parties (USAFD and All On) will jointly provide funding to Nigerian small and medium enterprises that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies."The winners will have near-term solutions to power the needs of productive and commercial activities, including agriculture production and processing, off-farm businesses, and commercial enterprises.
Multiple global financiers have approved a $20 million equity investment in support of the mini-grid market both in Asia and Africa. A rural distributed utility company specialising in the mini-grids market, Husk Power Systems, attained the investment from Shell Technology Ventures LLC, Swedfund International and ENGIE Rassembleurs d’Energies.The company’s CEO and co-founder, Manoj Sinha stated that the company is now poised to grow rapidly over the next four years and envisions adding over 300 mini-grids in India and Tanzania, deploying 15MW of 100% renewable power plant assets.Sinha said: “Together with our strategic partners, we are now confident of achieving our vision of becoming the world’s largest rural utility company providing 24/7, 100% renewable and affordable power to drive inclusive and sustainable development in growth markets. “We believe that mini-grids are the most capital efficient way to help reach 100% national electrification goals.” The company boasts to be the first company to use 100% biomass gasification from rice husks to generate electricity for households and small businesses.
Hakima Mohammed, 57, earns a living through tree nursery farming. She owes her successful business venture to the use of a solar water pump, which has reduced the burden and cost of fetching water using jerrycans. “Before I got the solar pump, I used to work even on Sundays to ensure I have enough water for the tree seedlings. But with the solar pump and a storage tank, I have a day's rest and [time to spend] with my three children,” said the resident of Maseno, Kisumu West subcounty.She has increased the number of seedlings to 240,000 on her farm, where she has planted 30 tree species, both indigenous and exotic.“I have no background in forestry, but I learned everything I know about tree seedling from my late husband, who was a forester in Kisumu county," she said during a visit to the farm. "This business has enabled me to educate my two children up to university level, while the lastborn is in secondary school.”On a good day, Hakima makes between Sh20,000 and Sh100,000; seedlings goes for Sh10. “One customers can buy from 2,000 to 10,000 seedlings, especially the indigenous tree species, which are preferred for commercial purposes,” she said. Oliver Bill Odhiambo, 24, from Miguye village, Rabuor, Kisumu East subcounty, also has a solar water pump which he bought for Sh65,000.
SustainPower, together with Unique Hydra, recently delivered a locally manufactured biogas electrical power generator to ibert, a Southern Africa biogas company.The containerised combined heat and power unit (CHP) produces electricity and heat in a waste-to-energy process which, by recovering about 90% of the energy in the gaseous fuel, is very efficient. Biogas is a methane-rich gas which is produced during the breakdown of organic matter, e.g. agricultural waste, plant material, food waste etc, in an anaerobic digestion process, and is therefore considered a renewable energy source. Launched in May 2017 at the African Utility Week in Cape Town, SustainPower, which specialises in containerised sustainable power generation equipment, delivered its first 220kW CHP to ibert’s abattoir waste-to-biogas generation plant near Pretoria. The CHP, designed and manufactured in Cape Town, converts biogas into electrical power and thermal energy which is consumed by the abattoir.“For our previous biogas plants, we imported our generator sets directly from Germany because we could not find the right cost-effective technical solution in South Africa. Although the SustainPower team are the new players in the market, we trusted the team’s expertise and their innovative concept, and we have been very impressed with the end result,” says Horst Unterlechner, technical director, ibert biogas.“Whilst the biogas and waste-to-energy industry in Africa is still in its infancy, it has enormous potential as energy shortages and ineffective waste management are amongst the largest challenges in Africa,” says Tobias Hobbach, managing director of SustainPower. “
In North Africa, Egypt’s ambitious target to developing one of the world’s largest solar generation parks has gained international support.On Tuesday MIGA, a member of the World Bank Group, announced the guarantees of up to $102.6 million in support of the construction, operation and maintenance of six solar power plants in Egypt.The power plants will collectively have a combined capacity of up to 250MW, and represent the first set of a total of 12 projects approved by MIGA’s board in support of the country’s Solar Feed in Tariff (FiT) programme.A statement explained that the guarantees are being provided against the risks of Expropriation, Transfer Restriction and Inconvertibility, Breach of Contract, and War and Civil Disturbance. Some $5 million of coverage is being provided for by equity holder ib vogt GmbH of Germany for up to 15 years. While an additional $97.6 million of cover is being provided for up to 20 years to lender Industrial and Commercial Bank of China (ICBC) of People’s Republic of China, bolstering the longer-term strength of the projects against fluctuating tariffs.
The African Development Bank (AfDB) has partnered with Calvert Impact Capital (CIC), Global Environment Facility (GEF) and the Nordic Development Fund (NDF) to drive investments in off-grid energy across Africa. Through the partnership, the AfDB approved a $30 million investment in the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF). This follows the approval of additional investments of $10 million from CIC, $8.5 million from GEF and €6 million ($7 million) from NDF. FEI OGEF is a $100 million blended finance debt fund designed to provide loans in local and hard currencies to off-grid energy companies with the dual objectives of scaling up access to clean electricity for off-grid households and crowding in local financial institutions as co-lenders.“FEI OGEF is the first Bank instrument that enables debt financing, including in local currency, to off-grid energy access companies who need growth capital to expand their operations across Africa,” said Astrid Manroth, Director, Transformative Energy Partnerships at the African Development Bank.
The Dutch-U.S. solar developer and the Israeli company are teaming up to construct 10 solar power plants with a capacity of 10 MW each at several university campuses in Ethiopia. Energiya Global Capital, which is an Israel-based research & development group, and Netherlands-based solar project developer, Gigawatt Global are planning to build solar parks at several university campuses in Ethiopia. In a statement sent to pv magazine, Gigawatt Global CEO, Josef Abramovitz said that, initially, the two companies will build 10 solar power facilities with a capacity of 10 MW each, and that the project is currently being discussed with Ethiopian Prime Minister, Hailemariam Dessalegn. The solar projects, Abramowitz stressed, are part of a broader plan to train hundreds of thousands of students in what will be living laboratories for solar and other green energy. “The goal is technology and knowledge transfer from Israel and the United States and will be done in phases, subject to final approval of the Prime Minister and Energy Minister, who turned to Israel to help develop this technical training program.” More details on the projects were not provided.
The African Development Bank achieved a 100% investment in renewable energy in 2017, a milestone in its commitment to clean energy and efficiency. The Bank said in a statement that power generation projects with a cumulative 1,400MW exclusively from renewables were approved during the year, with plans to increase support for renewable energy projects in 2018 under the New Deal on Energy for Africa. Bank President, Akinwumi Adesina, commented: ‘’We are clearly leading on renewable energy. We will help Africa unlock its full energy potential, while developing a balanced energy mix to support industrialisation. “Our commitment is to ensure 100% climate screening for all Bank financed projects.’’The Bank’s power generation portfolio has increased its share of renewable energy projects from 14% in 2007-2011, to 64% in 2012-2016. According to the press statement, the Africa Renewable Energy Initiative (AREI) – whose goal is to deliver 300GW of renewable energy in 2030 and 10GW by 2020 – is now based within the Bank, as requested by African Heads of State and Government. The G7 has promised to commit $10 billion to support the initiative, which came out of COP21 and subsequently approved by the African Union.
Energy access remains a critical piece of the African development story. Some 600 million people in the region are still without access to modern forms of energy, relying instead on rudimentary fuels, such as charcoal and wood, for cooking; costly kerosene, candles and batteries for lighting; and spending significant and increasing amounts of time and money on charging devices such as cell phones. This article originally appeared in Issue 3 2016 of ESI Africa print magazine. The digital version of the full magazine can be read online or downloaded free of charge. However, given the $37 billion (in cash, not opportunity cost) that the International Finance Corporation (IFC) estimates is spent annually on meeting these basic household energy needs, there is certainly a market for better solutions. The exciting news is that an ‘offgrid revolution’ of sorts is afoot, with East Africa at the forefront. Companies like Mobisol, M-KOPA, Off-grid Electric, Fenix Intl and BBoxx are already connecting thousands of homes each month using rooftop solar home systems (SHS). However, to meet the full gamut of energy needs of this growing continent, a variety of technology solutions and business models must be brought to bear across Africa. This includes the expansion of mini-grids, particularly as a means of supporting productive uses of power and greater industrialisation across the continent. These too can be developed and operated by commercial enterprises.
ENERGY: Lighting up dark rural areas and electrification of more public facilities is set to be accelerated this year following the approval of $150 million (Sh15 billion) financing for Kenya Off-grid Solar Access Project.The funding by the World Bank will enable the Rural Electrification Authority (REA) to establish solar mini grids and boost transformer network across the country. The aim of the project is to enhance electricity access and connectivity in areas with large populations that had not been previously reached due to the 600 metres radius transformer limitation.Through the transformer maximisation project, REA intends to install 1,000 transformers across the country by the end of the 2017/18 financial year. The programme will involve the installation of at least five extension transformers per constituency in areas with existing high transmission lines.The authority will in the New Year continue to strive to meet the target of universal access by the year 2020,â€�said REA Chairman, Dr Simon Gicharu. He said the mini grids will facilitate increase of solar pumping systems to provide water for drinking and irrigation in 14 underserved counties in Northern and North Eastern Kenya.
Umeme, Eskom, UEDCL, UETCL and UEGCL have submitted investment plans for 2018 to the Electricity Regulatory Authority, all of them signalling an increase in capital expenditure. The investment is expected to be recouped from power tariffs to be charged, suggesting that the cost of power will remain high next year, writes JEFF MBANGA. These revelations came to light at a public hearing held by ERA last week to seek views from different businesses before announcing the tariff. The exchange rate is expected to be the biggest determinant of the movement of the power tariff considering that more than 80 per cent of the investment costs that power firms incur are pegged on the US dollar. Uganda Electricity Generation Company Limited, Uganda Electricity Transmission Company Limited, Uganda Electricity Distribution Company Limited, Eskom and Umeme all see capital spend going up by at least 30 per cent in 2018.Eskom, the South African firm that manages the two dams at Nalubaale and Kiira, is slated to account for the highest increase when the company invests $20.2 million in 2018 compared to the $2.5 million in 2017. Umeme, the locally-listed company, where the National Social Security Fund is the major shareholder with 23 per cent, submitted an application with a revenue requirement of Shs 900 billion or $250 million.
Natural gas has a significant role to play in South Africa’s energy mix. This is echoed by a number of national policy documents including the White Paper on the Energy Policy of South Africa (1998), the National Development Plan (NDP), the draft Integrated Energy Plan (IEP) and the Integrated Resources Plan 2010-2030 (IRP 2010).To this effect, the Honourable Minister of the Department of Energy (DoE), Ms Tina Joemat-Pettersson, has made two determinations under the Electricity Regulations Act and the Electricity Regulations on New Generation Capacity. The first determination is for 600MW of new generation capacity, which is needed to contribute towards energy security, to be generated from gas. This represents part of the 948MW of capacity allocated to ‘Gas CCGT’ (natural gas) for the year 2030. The second determination, and the main focus of this article, is for the procurement of 3,126MW of new generation capacity, which is needed to contribute towards energy security, to be generated from gas for the years 2019 – 2025.To-date, South Africa has had a very successful Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which began in 2010. The programme has successfully procured 6.4GW from various renewable energy sources including solar, wind, hydro and biomass. The gas-to-power programme (G2P) will use a similar approach to the REIPPP programme including a government-backed long-term Power Purchase Agreement(s) (PPA), which necessitates the bankability required to attract investors. However, the G2P will involve the importation of liquefied natural gas (LNG) as a fuel source for 3,000MW of the 3,126MW determination. The remaining 126MW will be subject to a domestic G2P programme at a later stage.
"Tanzania Midstream Oil and Gas Industry Outlook to 2022 - Market Forecasts for Oil Storage, Pipelines and Gas Processing", is a comprehensive report on midstream oil and gas industry in Tanzania. The report provides details such as name, type, operational status and operator for all active and planned (new build) oil storage terminals, major trunk pipelines and gas processing plants in Tanzania till 2022. Further, the report also offers recent developments and latest awarded contracts in the country’s midstream sector.Updated information related to all active and planned oil storage terminals, major trunk pipelines and gas processing plants in the country, including operator and equity details . Key mergers and acquisitions, partnerships, private equity and initial public offerings in the country’s midstream oil and gas industry, where available .Latest developments and awarded contracts related to midstream oil and gas industry in the country.Gain a strong understanding of the country’s midstream oil and gas industry . Facilitate decision making on the basis of strong historic and forecast of capacity data .Assess your competitor’s major oil storage terminals, major trunk pipelines and gas processing plants in the country . Analyze the latest developments and awarded contracts related to the country’s midstream oil and gas industry
Khartoum — Britain has expressed its desire to cooperate with Sudan in the field of oil to develop oil investment in the country. This was announced by Mr. Michael Aron, the British Ambassador to Sudan during a meeting with Dr. Abdul Rahman Othman, the Minister of Oil and Gas Ministry Sunday. The British ambassador pointed out that the lifting of the sanctions made the climate conducive to attracting investments, stressing the seriousness of a number of British companies to enter the Sudan, led by Shell, stressing the strength of relations between Britain and Sudan and the desire of the two countries to boost them further in a number of areas. For his part, Dr. Abdul Rahman Osman welcomed the British investments in Sudan, announcing his acceptance to participate in the Economic Forum to be organized in the United Kingdom, which aims to mobilize companies to invest in Sudan. The Minister of Oil expressed optimism on taking part in the investment rally, referring to the deep-rooted oil industry in Sudan, which needs introduction of modern technology. The Minister of Oil is to present in the forum the investment opportunities available in Sudan and the priorities targeted by the ministry for the increase of gas and oil exploration. A number of national oil companies, which have partnerships with a number of companies operating in the fields of oil industry, are scheduled to participate in the forum.
The Africa Development Bank’s (AfDB) Sustainable Energy Fund for Africa (SEFA) has approved a grant of US$995,000 to Asticom Kenya Ltd, to support the construction of a 10MW grid-connected municipal waste-to-energy (WTE) plant.The grant will fund the cost of conducting a full environmental and social impact assessment, detailed engineering designs and provide project-related legal advisory services, as well as financial and transaction advisory services. Launched in 2012, SEFA is a US$90mn facility funded by the governments of Denmark, the UK, the US and Italy. It supports the sustainable energy agenda in Africa through grants to facilitate the preparation of medium-scale renewable energy generation and energy efficiency projects. The project will be located in Kibera, a suburb of Nairobi, and is expected to generate electricity from municipal solid waste by converting them to biogas or fuel ethanol. “The planned diversion and use of municipal solid waste is set to have significant health, social and development outcomes, and will be of benefit to the inhabitants of Kibera, a community that receives 1,000 tonnes of municipal solid waste daily from the Nairobi County,” said AfDB. The AfDB further added that the local dwellers will be contracted in the sorting of the municipal waste, which will provide them with additional employment and income.The project aligns with AfDB’s High 5 development priorities and in particular, the agenda to Light up and Power Africa, the 10-Year Strategy, the Private Sector Development Strategy (2013-2017), the Energy Sector Policy 2012 and the New Deal on Energy for Africa. It is also in line with Kenya’s National Development Plan and the AfDB’s Country Strategy Paper (CSP) for Kenya, which prioritises the ‘enabling of physical infrastructure to unleash inclusive growth.’
As part of its wider mandate under the New Deal on Energy for Africa, the Board of Directors of the African Development Bank has approved an investment of US $20 million in the Evolution II Fund −a Pan-African clean and sustainable energy private equity fund. The Bank's investment in Evolution II Fund reflects the High 5 development priorities of the Bank and in particular, the agenda to Light up and Power Africa. The proposed participation in the Fund is a demonstration of the Bank's commitment to promote renewable energy and efficiency in Africa. The Evolution II Fund will invest an estimated US $250 million in various renewable energy and resource-efficiency assets across sub-Saharan Africa over a period of 10 years. In partnership with the African Development Bank and other investors, Evolution II will provide growth capital and infrastructure equity to support low-cost, low-carbon, small-to-medium-sized, clean and sustainable energy generation capacity. Evolution II Fund is expected to contribute to green and sustainable growth by creating 2,750 jobs and building on the track record of the Evolution One Fund (which created 1,495 jobs, of which 20% were women, and generated 838 MW of wind energy and 87MW Solar PV energy). The Evolution One Fund achieved 1,190,469 of Carbon dioxide (CO2) emission savings annually. "The Bank is delighted to support a private equity fund that is focused on promoting renewable energy in Africa. We are confident it will contribute to the Nationally Determined Contributions (NDC) of the Bank's member countries as well as the COP21 commitments," said Akinwumi Adesina, President of the African Development Bank. The Vice President for Power, Energy, Climate and Green Growth Complex of the Bank, Amadou Hott, emphasized the African Development Bank's high commitment to boosting its portfolio of renewable energy projects and encouraging private investment in renewable and efficient energy solutions.
Energy developers will be able to commence operations within three to five years after being licensed, according to the newly amended proclamation. This is contrary to the existing one where all energy developers were required to become functional within 12 months. The proclamation is amended in a bid to alter burdensome provisions and encourage investors in the energy sector. It is an action taken to achieve the government's plan of adding 12GW of renewable energy to the grid by 2020. The parliament, in its eighth regular meeting held last Tuesday, tabled the four-year-old energy proclamation. Geothermal and hydropower project developers must become operational within five years, whereas investors engaged in wind, solar, biomass, coal and natural gas energy must start generating power within three years of getting the licence, according to the amended proclamation. The Ethiopian Energy Authority has also drafted a regulation for its implementation.
Cogeneration, the thermal electricity generation practice in which heat is a valuable secondary product, is internationally well established and already in use by several South African operators. It is a much more efficient way to use costly fuel than electric power generation by itself. But it requires a close-by customer for heat, sold either in the form of medium- or low-pressure steam, or as hot water. In cold climates with long winters, it is a no-brainer. But can it work in hot Africa? So-called ‘thermal’ electricity generation involves the burning of a fuel, turning the chemical potential energy into thermal and kinetic forms of energy; from there into mechanical work (a spinning machine) and from there into electricity. There are losses in each energy conversion step, but by far the biggest of these occurs in the conversion of heat into power, limited by the laws of thermodynamics. Some heat is thus always left over, ranging from 35% to over 75% of the original fuel energy. In a single-product thermal power plant, this left-over heat has to be dissipated into the environment, often via evaporative cooling. South Africa’s national power utility, Eskom, for example, evaporates of the order of 300 billion litres of water each year in its power stations. Using this leftover heat would thus not only prevent burning of fuel elsewhere (reducing attendant CO2 emissions) but also save water.
Mobisol, a Germany-based provider of decentralized solar solutions, has installed a capacity of 10 MW and electrified over 500,000 people in East Africa to date. The company provides smart rent-to-own solar systems, to households in Kenya, Rwanda and Tanzania. Mobisol provides solar solutions beyond lighting and focuses on the development and supply of large solar systems that power a range of energy-efficient household and productive use appliances. While currently distributing business appliances such as multiple phone chargers and barber salon packages, the company plans to increase its offering around productive-use appliances for small and medium enterprises in 2018.By plugging in more and more homes and businesses in Kenya, Mobisol continues to strive to ensure lasting and affordable power solutions for its customers. The 500,000th Mobisol customer was Sarah Atieno, a small business owner from Siaya County. “For my family, this product is a game changer. It is a much needed clean and energy efficient source of lighting and entertainment for my family. They are so excited already about having lighting at night and being able to watch TV at home”, she said. Mobisol’s founder and CEO, Thomas Gottschalk, says: “We are proud to have reached this important milestone to electrify half a million people in rural East Africa. But it does not end here: Our vision is to help make poverty history by providing sustainable and affordable energy solutions to 20 million people by 2023 – and ultimately to show the world that a cleaner, non-fossil fuel dependent future is possible. The solutions are out there to sustainably, yet profitably provide energy access to millions of people, empowering people and boosting economies while protecting the global climate.”
Arusha — The East African Community (EAC) has adopted its Energy Security Policy Framework which seeks to ensure the security of the region's biomass, electricity, and oil and gas supplies. According to Mr Elsam Byempaka Turyahabwe, the energy expert at the Community Secretariat, partner states are implementing number related projects to address the low access to modern energy services in the region. However, energy security is a major challenge in the EAC and globally. "This EAC Energy Security Framework aims to provide regional guidance to partner states in the management and mitigation of the challenge," said Mr Turyahabwe, according to yesterday's dispatch to the newsrooms. He added: "We also anticipate that greater effort will be made at pursuing regional solutions to parts of the security of supply challenges in the biomass, electricity and oil and gas sub-sectors". Mr Yohannes Hailu, Energy Economist at UN Economic Commission for Africa, confirmed that this framework would address pertinent energy security issues still prevailing in the EAC region, if implemented by all the Partner States. "Deforestation, rising wood and charcoal prices, devoting large share of our national budget towards the importation of oil and gas, electricity affordability and reliability, among others, are all signals that we needed to look at energy security and come up with a framework that enables us to address and prevent the security challenges," said Hailu.
S.Sudan ramps up power transmission system
Kenyatta University (KU) has switched on the first phase of a Sh1.7 billion solar plant that will see the institution generate its own electricity and offload excess power onto the national grid. The 100 kilowatt(KW) solar plant, located at KU’s main campus off Thika Road, cost an estimated Sh17 million. It is projected that the entire 10-megawatt project will cost Sh1.7 billion.The extra power produced in phase two will be connected to the national grid, helping to generate extra revenue for the institution. Phase one of the plant was developed by France-based solar panels manufacturer Urbasolar through funding from the French government. It occupies about three acres. KU did not, however, provide figures on the amount the university expects to save from generating its own electricity. Speaking after commissioning the plant, Energy and Petroleum secretary Charles Keter said the country had received substantial funding from the French government that shall go towards achieving universal electrification by 2020. “We have total commitments amounting to Sh50.16 billion for financing the last mile connectivity project and Sh150 billion in commitment for electrifying off-grid areas. With support of development partners, we will achieve our objective of universal electrification by 2020,” said Mr Keter.
Acting Commissioner for Energy and Petroleum Affairs, Engineer Innocent Luoga (Standing) NEARLY 70 per cent of Tanzanians are now said to have access to grid electricity, an increase of some 30 per cent within two-years. This means at least 35 million Tanzanians have access to main grid electricity across the country, with the figure set to rapidly increase with ongoing rural electrification programmes - billed the highest electricity penetration in East Africa. The Acting Commissioner for Energy and Petroleum Affairs, Engineer Innocent Luoga revealed here that people's access to electricity jumped from 40 per cent in 2015 to slightly above 67.5 per cent in 2017 -- and climbing -- whereas grid power penetration ranges from 97.3 per cent in urban areas and 49.5 per cent in rural areas. Tanzania is currently home to an estimated 50 million people, the largest of the six countries making up the East African Community. Commissioner Luoga was addressing the 'International Conference on Water Infrastructure and Sustainable Energy Future in a Changing Environment,' WISE-Future for short, against the backdrop of ongoing concerns over effects of global warming and climate change.
The Uganda National Oil Company Ltd has voted to increase its shares in the upstream oil and gas business by five per cent, in addition to investing in downstream and midstream activities. Upstream activities involve exploration to oil production; midstream activities involve commercialisation of oil and gas, including processing and evacuation to the markets, refinery and pipeline, while downstream activities involve storage of the final products. "Our analysis of the oil and gas projects shows they are not only strategic assets but profitable business ventures as well," said Emmanuel Katongole, the chairperson of UNOC board of directors. Current laws give the government a fixed 15 per cent stake in all upstream activities but UNOC is concluding the process to manage its 15 per cent interest in the Kingfisher development area (Hoima) and Tilenga Development Projects (Buliisa and Nwoya districts oil fields).UNOC wants to go into exploration with interests far above what has been prescribed by the law, riding on model production sharing agreements, which prescribe 20 per cent state participation. "Any participating interest that UNOC will acquire in the new ventures will be above the mandatory 15 per cent state participation," UNOC's chief legal and corporate affairs officer, Peter Mulisa, told The EastAfrican.
Power producer KenGen earned Sh57 million from the sale of carbon credits in the year to June this year. Managing Director Rebecca Miano said while the firm would continue participating in the emissions trading system, earnings are likely to remain subdued by the sub-sector’s prevailing trading framework and a slowdown in the global momentum. The carbon trading system is aimed at reducing pollution by penalising polluters and at the same time enabling companies or countries to earn from their environmentally friendly projects.“Some of the international protocols that brought forth these carbon credits framework have not come out very clearly as to the future of the system. We have registered some projects in Olkaria and Kindaruma and have plans to register more, but it is not a big revenue stream. Global momentum has not continued on a high trajectory,” said Miano in a recent interview. KenGen is among the few firms in Kenya that are earning from their green projects. Others that have in the past earned from the sale of carbon credits include Mumias Sugar Company, East Africa Portland Cement, and Kenya Power. In the financial year to June 2017, the firm earned Sh57 million from carbon credits, down from Sh91 million in 2015. There were no earnings in the year to June 2016. Miano said the firm would focus on other diversified revenue streams.
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The Board of Directors of the African Development Bank Group (AfDB) has approved a loan of € 150m to help finance the 420 MW Nachtigal hydroelectric project, with the financial support of other partners. Nachtigal, will come online in 2022, thereby increasing the county's existing electricity installed capacity by 30%. This will also help to lower the cost of electricity in the long-term. The project is in line with the AfDB's initiative to promote renewable energy, whose share of the electricity generation portfolio increased from 14% during 2007- 2011 to 70% between 2012 and 2017. The Board of Directors of the Bank recalled the current challenges in Cameroon's electricity sector and expressed their support for an integrated approach to address the challenges adequately and efficiently with the assistance of other development partners. The 420 MW run-of-river hydroelectric power plant, jointly designed and developed by the Republic of Cameroon, EDF International-Electricité de France and the International Finance Corporation (IFC), is an essential component of the National Development Plan for the electricity sector and a key priority for the country. The AfDB provided advisory services to the Government through the African Legal Support Facility (ALSF), to ensure that the project was well grounded. Nachtigal will provide clean and reliable energy at a competitive price, thereby boosting economic growth and increasing job creation, while bridging the energy gaps in Cameroon and the central Africa sub-region. The hydropower facility will help reduce the use of fossil fuels, and make positive environmental and socio-economic impact in the surrounding communities.
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