Lake Turkana Wind Power (LTWP) says it is unable to offset its carbon credits due to a protracted land dispute with the local community in Marsabit County.
“We have issued carbon credits for four years now, but we have struggled to sell them. We have a publicised legal case over the land here,” said Chief Executive Max Schiff.
He was speaking during the recent launch of the firm’s 2023 Sustainability Report at Loiyangalani, Marsabit County.
The wind farm, which supplies renewable energy to the national grid, has been embroiled in a land dispute following a High Court ruling that deemed the acquisition of the land unprocedural
According to Mr Schiff, the land dispute, which is still in court, is preventing the sale of carbon credits, whose proceeds are essentially meant to benefit the local community.
He said the firm is, however, working on ways to monetise its carbon credits.
“We haven’t been able to sell also because the price is not good. The cost for us is poor right now, but we are working on ways to increase our value,” Mr Schiff said.
Carbon offsetting is the practice of using avoided emissions or enhanced removals to compensate for greenhouse gas emissions.
These can be purchased by companies, organisations, or individuals to compensate for their own carbon footprint, effectively allowing them to invest in projects that preserve the environment and mitigate climate change, such as renewable energy or reforestation efforts.
According to LTWP Chairman Mugo Kibati, when credits start generating revenue, locals will benefit but as of now, the offset price is still low.
Mr Kibati noted that LTWP generated 1,481 Gigawatt hours (GWh) of clean energy in 2023, accounting for 11.04 per cent of Kenya’s electricity generation and preventing 605,428 tonnes of CO2 emissions.
In 2022, Carbon emissions offset by the firm was 680,000 tonnes, slightly higher than in 2023. The firm attributed the reduction to variations in wind patterns and maintenance schedules that affected overall energy production.
CEO Schiff said they were able to displace 91 million euros worth of fuel imports.
The energy producers’ contribution to the national grid reduced from 1,659 GWh in 2022 to 1,481 GWh in 2023, representing an 11 per cent contribution to the energy grid.
Acknowledging that the wind power firm generated less energy in 2023 when compared to 2022, the CEO said there was slightly less wind in 2023, displacing less carbon in the same period.
“This event, held at the LTWP project site in Loiyangalani, Marsabit County, marks a significant milestone in our ongoing commitment to environmental stewardship, social responsibility, and economic development,” said Mr Schiff.
According to the Kenya National Bureau of Statistics Economic Indicator, as of June 2024, wind power’s total contribution to the national energy grid stood at 825.76 million kilowatt-hours (kWh) compared to 1.05 billion generated in the same period in 2023.
In June 2024, local energy generated by different sources stood at 1.02 billion kWh compared to 1.03 billion kWh in 2023.
Between January and June 2024, the total energy contribution by different sources was 6.098 billion KWh. In the same period in 2023, the contribution to the grid stood at 6.112 billion kWh.
On the cost of energy, LTWP Chairman Mr Kibati noted that LTWP is currently the second cheapest independent power producer in the country.
“There are a lot more sources of energy, some of which are more expensive than we are. I would like to implore policymakers to ensure that as we try to reduce the cost of power, we take a long-term view and target the right people,” he said.
“Those who are good actors and are offering cheap sources should be incentivised and not discouraged because we need more investments in the energy generation sector and investments to bring in cheaper sources of energy that will dilute the existing expensive sources of energy.”
Statistics on Carbon Markets by the World Bank show that Africa has not yet realised its full carbon market potential.
Africa currently only generates around two per cent (39 million in 2021) of its estimated potential of 2,400 million carbon credits per year.
In 2022, Kenya was the second-largest issuer of carbon credits in the voluntary market in sub-Saharan Africa.
The Kenya Electricity Generating Company (KenGen) recorded 12.7 million in revenues from trading carbon credits in 2022.
This, however, dropped significantly to Sh4.26 million in 2023.
