Nairobi, Kenya — ESI-AFRICA.COM — 20 December 2010 – Kenya Power and Lighting (KPLC) has signed an agreement with Standard Bank Group to develop various clean energy projects for sale under the clean energy initiative of the United Nations (UN).
Under the UN’s clean development mechanism (CDM), companies in developing nations can earn carbon credits for helping prevent the release of carbon dioxide by building clean energy projects.
The first CDM project by the two organisations was for 90 000t of carbon dioxide that have not been released into the atmosphere as a result of KPLC distributing 1.25 million free energy-saving bulbs across the east African nation earlier this year.
“The contract with Standard Bank for development of CDM projects will be valid for five years, while the sale of carbon credits for successful projects will continue for the relevant crediting period according to each project,” KPLC CEO Joseph Njoroge told a news conference.
The KPLC “’ Kenya’s monopoly electricity distributor “’ handed out free bulbs worth 430 million shillings (US$5.3 million), which it says helped cut peak electricity demand by 45MW and saved 7 billion shillings (US$211.6 million).
“The carbon emissions saved through the project could earn the company about 100 million shillings (US$1.2 million),” Njoroge said. The project is yet to receive UN approval.
The KPLC hopes to launch up to two clean energy projects annually, such as light-emitting diode (LED) lighting. “It is a real business and a business that will add value to our shareholders,” Njoroge said.
Earlier this week, Standard Bank said it had purchased 700 000 carbon credits to fund a clean energy project to replace kerosene lamps with LED lamps in Tanzania.