KEPSA members tipped to invest in Kenya’s large scale green energy projects

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  • KEPSA has signed a Memorandum of Understanding (MoU) with Fortescue Future Industries (FFI) to assist its members’ participation in new, large scale green energy projects in Kenya
  • The two parties will now collaborate on the assessment of mutual opportunities in relation to the project objectives and commitment to sustainable business practices

The Kenya Private Sector Alliance (KEPSA) has signed a Memorandum of Understanding (MoU) with Fortescue Future Industries (FFI), an Australian company to assist its members’ participation in new, large scale green energy projects in Kenya.

FFI, a wholly-owned subsidiary of Fortescue Metals Group Limited (Fortescue), is in the process of assessing a proposed integrated large scale green hydrogen and green ammonia production facility, utilizing renewable energy in Kenya.

“FFI is rapidly advancing and investing in a wide range of green energy initiatives, including the development of large-scale green energy projects worldwide. We are committed to supporting economic growth, employment creation, empowerment of youth and small and medium-sized enterprises, and the potential to alleviate poverty in the local communities we operate in”, stated FFI Chief Executive Officer Julie Shuttleworth.

The two parties will now collaborate on the assessment of mutual opportunities in relation to the project objectives and commitment to sustainable business practices, with a shared vision to be enablers of global de-carbonization.

Carole Kariuki, the KEPSA CEO, noted that KEPSA has been at the forefront in championing sustainable and inclusive business practices and efforts towards addressing climate change mitigation and adaptation.

These efforts, she said, are coordinated through the Environment, Water, and Natural Resources Sector Board at KEPSA and which works closely with the government.

“KEPSA has been instrumental in championing the development of business-friendly policies and regulatory frameworks for addressing climate change and sustainability. This includes the development of the Climate Change Act in 2016, the National Climate Change Action Plans (NCCAP) 2018 – 2022, and ongoing development of Climate Change Regulations that seek to provide incentives for businesses implementing climate change initiatives”, said Kariuki.

Through KEPSA, FFI will engage with private sector players in seeking and taking advantage of supply chain and downstream green industrialization opportunities through green industry advocacy and collaboration with public sector stakeholders to support rapid project mobilization.

KEPSA has signed an MoU with an Australian company to assist its members’ participation in new, large scale green energy projects in Kenya / KEPSA

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The announcement comes just days after the signing of a 10-point Corporate Commitment charter to climate change and sustainability in Kenya by representatives from the private sector including KEPSA, Kenya Climate Innovation Center (KCIC), Kenya Association of Manufacturers (KAM), and development partners, among other stakeholders.

Some of the highlights in the charter include the commitment to the reduction of greenhouse gas emissions by at least 5% per annum with a base of 2020 in the hope of helping Kenya achieve its ambition to abate 32% by 2030.

The signatories agreed to integrate climate change mitigation and adaptation actions into business models, strategic business plans and value chains as well as enhancing adaptation investments in operations and value chains such as reduction of water consumption, increase in water use efficiency, and wastewater management, early warning and emergency response systems.

Others are a commitment to raising awareness and building the capacity of the private sector to map out their greenhouse gas emissions hotspots while mainstreaming emission reduction strategies and training modules to build technical capacities for combating climate change in business.

The stakeholders are also committed to developing products and services that are climate-sensitive to encourage the path toward strengthening climate resilience between local, regional, and international private sectors.

KEPSA Co-Chairs the Partnering for Green Growth and Global Goals (P4G) National Platform with Kenya’s National Treasury and has catalyzed 14 partnerships both start-up and scale up to provide market-based solutions for combating climate change and realizing sustainable development goals in Kenya.

The partnerships are currently providing sustainability and climate-oriented solutions in agriculture, water, energy, industry, and the circular economy sectors.

Association of private electricity players launched

In a separate story, The Exchange Africa reported that private-sector producers of electricity in the country have launched the Electricity Sector Association of Kenya (ESAK).

The new association ESAK comprises Independent Power Producers (IPPs), private participants in the development of captive power plants for commercial and industrial facilities, as well as participants in the electricity transmission and distribution value chains.

Chief Administrative Secretary in the ministry, Zachary Ayieka noted that the electricity access rate had grown from 20 percent in 2013 to over 80 percent currently.

“Kenya today has the biggest single biggest wind power plant in Africa in the 310MW Lake Turkana Wind Power Project. We rank seventh globally in Geothermal installed capacity in addition to over 90 percent of the energy in the Kenyan Grid being renewable. The transmission system has also improved with 2,424 km of transmission lines and thirty-three transmission substations constructed”, he said.

In the recent past, there has been an outcry from the public and investors in Kenya’s manufacturing sector over the rise in power costs, and which has been blamed in part on the IPPs who form part of the membership of ESAK.

IPPs account for more than 30% of the near 3 Gigawatts installed capacity on and tied to the Kenyan grid currently fed with power from wind, solar, thermal, hydro and biomass plants.

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Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

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