Why coal is key for Kenya’s power needs despite protests by the West

Politics and policy

Africa Development Bank president Donald Kaberuka. PHOTO | FILE 

By ALLAN ODHIAMBO

In Summary

• Africa Development Bank (AfDB) criticises developed countries who oppose continent’s plans to use coal to generate energy for development.

Two weeks ago, Africa Development Bank (AfDB) President Donald
Kaberuka rekindled the long running debate on Africa’s quest to satisfy its deep thirst for energy.

Mr Kaberuka who spoke in London defended the bank’s decision to “go against the grain” and continue financing coal power projects in Africa.

Kenya is among African countries with massive coal power projects on the cards aimed at boosting the national output amid growing demand from industrial and domestic consumers.

Opponents of coal argue that it is dirty, an environmental hazard and not a sustainable energy source. 

The question is whether Kenya and other African nations with ambitions of industrialising can be too choosy as to ignore coal – the well-known driver of economic advancement around the world.

With a generation capacity of 2,147 megawatts (MW) against a peak demand of about 1,500 MW, Kenya is under pressure to keep pace with the annual growth in demand of five per cent.

Increasing demand for power in Africa is partly premised on the fact that only 39 per cent of the population has access to electricity, compared to 70-90 per cent in other parts of the developing world.

AfDB data shows that Africa’s power connectivity is at 39MW per million inhabitants, the lowest in any developing region. The data also shows that more than 30 African countries experience recurrent outages and load shedding, with opportunity costs amounting to as much as two per cent of the total annual economic output. 

Africa’s per capita energy consumption is expected to rise to 1,757 kilowatt hour (kWh) in 2040 from less that 1000kWh presently while total demand from industry should rise to 1,806 terrawatt-hours (TWh) by 2040.

This dire situation has, however not stopped the raging debate as to whether Africa should rely on sources such as coal to boost their power supplies and drive economic growth.

Environmental groups including Greenpeace, Oxfam and WWF have opposed the construction and financing of coal plants, citing environmental and health risks.

The World Bank and European Investment Bank have both yielded to such pressure and put limits on how far they can go financing coal projects. The governments of the UK, Denmark, Finland, Norway and Sweden have followed suit.

In Kenya, activists under the Save Lamu Group have opposed the construction of a 960 MW coal plant in Hindi, Lamu citing threats to the environment and human life.

READ: Lamu coal plant firms pledge 1,000 new jobs for locals

AfDB which finances a wide range of energy projects in Africa however maintains that the continent cannot ignore coal just yet.