This
means Amu Power Company Limited, a consortium including Centum
Investments, is cleared to get a power generation licence that has been
withheld since last year as the objections by Save Lamu Natural Justice
were reviewed.
The ERC said all environmental concerns raised by Save Lamu would be addressed as the project is implemented.
On
the economic front, the project’s fuel price has been addressed in the
power purchase agreement and livelihoods of the people of Lamu “has been
addressed in the environmental social impact assessment”.
The Energy Regulatory Commission (ERC)
has approved the construction of Kenya’s first coal-fired power plant in
Lamu after rejecting objections to the project by a community-based
organisation.
This means Amu Power Company
Limited, a consortium including Centum Investments, is cleared to get a
power generation licence that has been withheld since last year as the
objections by Save Lamu Natural Justice were reviewed.
The ERC says the environmental, technical and economic issues raised by Save Lamu have been addressed.
“Taking
the above reasons into account, the commission disallowed the
objection. The above decision is based on the objects and mandate of the
commission envisaged under section 5 (a) and powers under section 6 (c)
and (e),” ERC said in a Kenya Gazette notice.
The regulator said the people affected by the project are not opposed to Amu being issued with a licence.
“Their
only concern was a fair relocation and compensation which is being
undertaken by the government in liaison with the project affected
persons,” said the regulator in the notice.
The ERC said all environmental concerns raised by Save Lamu would be addressed as the project is implemented.
Technical losses
On
technical matters, the regulator said the plant’s location is
“appropriate” and that it would supply the coast region with sufficient
power while helping to cut power cost of transmission and technical
losses. The coal plant will also help to diversify the country’s energy
mix and is supported by the government’s focus on least cost power, the
ERC said.
On the economic front, the project’s fuel
price has been addressed in the power purchase agreement and livelihoods
of the people of Lamu “has been addressed in the environmental social
impact assessment”.
The ERC said the project cost would
be recovered through the tariff as contained in the power purchase
agreement. Amu has a power purchase agreement with electricity
distributor Kenya Power which will buy the coal-fired electricity at
Sh7.7 (7.52 US cents) per kilowatt hour for onward sale to homes and
businesses.
At Sh7.7 per unit, the electricity is 61.5 per cent cheaper than the Sh20 diesel-fired plants charge.
Save
Lamu and other organisations have argued that the project will pollute
Lamu’s air and water, among other negative outcomes. UNESCO, which lists
Lamu Old Town as a World Heritage Site, says it is particularly
concerned about impact of air pollution on the coral limestone
buildings.
ERC acting chief Pavel Oimeke. FILE | NATION MEDIA GROUP
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