By Clifford Akumu
To build or not to build a coal-burning power plant in Lamu County on the Kenyan coast is clearly a hot topic, to say the least.
It is a highly-charged riddle pitting environmental lobby groups, non-governmental organizations, the community, scientists and the State in a war that has dragged for too long. Begging the questions, who will blink first in this continuing coal saga? How will the energy sector reap from coal power? Do we really need coal power as a country?
When the Government recently, through its Government spokesman Col. (Rtd) Cyrus Oguna vehemently referred to critics of the 1,050mw plant as “enemies of progress”-energy sector experts, environmental activists and the community at large were irked.
In his statement, Oguna had laid out how coal would be the driver of industrialization. How the technology would be used on the Lamu Coal Plant at Kwasasi village, Lamu West, he further noted, it would use the Ultra-Super Critical (USC) technology and that communities would reap benefits of clean water, fertilizer for agricultural activities and employment opportunities.
However, his sentiments did not go well with the opponents. What worried them especially in the face of economic and scientific evidence and an international outcry that speaks to the need to stop any coal investment in the country-was why the government continued to look the coal way.
For a while now, the country has been nurturing the dream of energy take off-and to them, renewables are Kenya’s future, what with a whopping 85% renewable energy base the country boasts of. To bolster the country’s renewable energy take off, Kenya’s president has committed to 100% renewable energy by 2020.
First, the coal project environmentalists add, will endanger the mangrove forest and local livelihoods-in an ecologically rich region of Lamu-that has won accolades as a UNESCO World Heritage site. Secondly, the project will need importation of coal. The country has untapped Coal in Kitui County yet some multinationals have big plans to sell the coal to the State
In a quick rejoinder, Greenpeace Campaigner Amos Wemanya noted, “Renewable energy sources such as geothermal, solar and wind offer safe opportunities for Kenyans to thrive. It will safely power business, agricultural productivity, cottage industrial activities.” Wemanya wondered why the arms of the government were not aligned in their response to the coal-power debate. “The spokesperson’s statement clearly contradicts national commitment made by the President of Kenya,” he said.
To the environmental lobby, this was the highest form of spin! Environmental concerns aside, the economics of coal clearly no longer add up-experts believe. Moreso, by 2050, the International Renewable Energy Agency (IRENA) predicts that the share of renewables globally in power generation would rise to 86% compared to 25% today, with 60% of this from solar and wind.
Later, in that same week-environmental lobby groups, scientists and the community at large would breathe a sigh of relief, albeit, for a period-when Judges effectively blocked the decision by Kenya’s Environmental Management Authority to issue a license to Amu Power Company-which plans to build the plant. Clearly, it was the “enemies of progress’s’” turn to celebrate.
For starters, the Lamu coal project was first proposed in 2015 as part of a government initiative to build new baseload capacity to replace aging diesel-fired generation and serve planned future economic growth. However, in the face of mounting pressure from effects of climate change, experts now believe the project has been overtaken by events.
In a study, the Institute for Energy Economics and Financial Analysis (IEEFA) noted that building the proposed coal plant would be a costly error and would lock the country into a 25-year power purchase agreement (PPA) forcing electricity consumers to pay more than Ksh900 billion, even if the project doesn’t generate any power as long as it is available for dispatch.
Whereas the state defended the project saying ‘It will boost industrialization and improve lives’, environmental lobby groups mounted pressure on the abandonment of the Ksh200 billion coal plant that is scheduled to roar into commercial service by 2024.
No wonder the fierce and unyielding protests mounted by the UN, environmentalists, NGOs, and Lamu residents continue to paint a different picture; that of a few individuals and investors driven by profits! On the other hand, the state sees a bulging energy potential that can feed the national grid and spur industrial growth.
Kenya currently produces more energy than it uses. However, electricity access to urban, peri-urban and rural communities is still limited due to a centralized energy system. Investing in a robust decentralized grid system will allow for better access to electricity to industries and households. Investments in the energy sector should go towards expanding the grid network.
Globally, Pakistan after suffering crippling energy shortages in the past sought to fill the capacity gap with coal financed by China. Currently, more than 60% of electricity generated in the country comes from fossil fuels, including gas, coal and furnace oil, and it is set to grow.
Amid the outcry, officials at Amu Power, believe they are ready to work with stakeholders to iron the issues raised in the court ruling.
Whether the contentious issues in the tribunal ruling are ironed out and the project proceeds, or it is thrown back to the drawing board; one thing is for sure-the coal-fired power project will continue to receive resistance from several quarters.
