Lamu Coal Power Station

Lamu Coal Power Station (proposed)
Proposed location of Lamu Coal Power Station in Kenya
Country	Kenya
Location	Lamu
Coordinates	02°09′13″S 40°54′12″E / 2.15361°S 40.90333°E / -2.15361; 40.90333Coordinates: 02°09′13″S 40°54′12″E / 2.15361°S 40.90333°E / -2.15361; 40.90333
Status	In development
Commission date	2020 (Expected)[1]
Owner(s)	Amu Power Company
Thermal power station
Primary fuel	Coal
Power generation
Nameplate capacity	1,050 MW (1,410,000 hp)

As of June 2017, recent coverage has centred on the lack of economic viability and need for the proposed Lamu coal plant, citing a range of experts in news and analysis pieces. International accountability organisations also raised concerns in a series of global blog posts. ^[2]

The proposed Lamu Coal Power Station is a potential 1,050 MW (1,410,000 hp) coal-fired thermal power station in Kenya.^[3] The proposed plant would be developed on 865 acres of land and feature a 210 meter tall smoke stack, which would become East Africa's tallest structure.^[4][5][6]

Kenya national government and media have been largely positive about the economic benefits from the coal plant activity.^[4][7] However, community advocates and some local government officials expressed concern over whether the benefits would be well distributed, whether the jobs would really materialise, and the lack of discussion over possible negative effects from the project.^[5]

Location

The power station would be located on 975.4 acres (395 ha) in the Kwasasi area, about 21 kilometres (13 mi) north of the town of Lamu in Lamu County, along Kenya's Indian Ocean coast.^[8] This is approximately 250 kilometres (160 mi), by air, north-east of Mombasa. The driving distance is approximately 300 kilometres (190 mi).^[9]

Overview

Construction was expected to begin in September 2015 and last approximately 21 months. Once constructed, it will be the largest single power station in Kenya. The power generated will be transmitted to Nairobi, the country's capital, via a new 520 kilometres (320 mi), 400 kilovolt electricity transmission line. In the initial years, the station will utilize imported coal, mainly from South Africa, and later convert to locally sourced coal from the Mui Basin in Kitui County.^[10] In September 2016, Kenyan print media indicated that construction is expected to begin in the fourth quarter of 2016 and last 42 months.^[1] The plant will cause massive pollution according to various reports such as Dr .John Musingi PHD Senior Lecturer and Programme Co ordinator Planning Environment Planning and Management Department of Geography and Environmental Studies Nairobi University ^[11] There is no demand for the proposed 1,050 Mw of power in Kenya to date or for the foreseeable future as Kenya is sufficient in energy generation at this time. Aside from this Turkana wind Powers 310 MW of power is still not connected to the national grid and will supply additional power to an already over supply in Kenya ^[12] China is seen to be exporting second hand coal plants to Africa and the expense of the African Nations that take them on .Ernest Niemi, an economist and president of Natural Resource Economics, who has done studies on coal plants across the world for over 40 years, said operating the AMU power coal plant to produce electricity will be cheap for the developers but expensive as an energy source to consumers and detrimental to the society in general.

Testifying before the National Environmental Tribunal in Nairobi in June 2017, the US-based consultant said Kenya will incur a massive health burden coupled with deaths with the operation of the plant.

Studies across the world, he said, show that the social cost of running coal-fired power plants exceeds the economic benefits ^[13]

Save Lamu (www.savelamu.org) has tabled numerous malpractices by Nema in approving the license to Amu Power . (Kenya National Environmental Management Authority )The right to comment to the public hearing was for every Kenyan, and the ERC failure to identify an accessible and safe venue for all was a clear plan to keep opposition away from the hearing^[14] Save Lamu Secretary-General Walid Ahmed said for several occasions, ERC had tried to lock out Lamu residents and activists from attending their meetings and airing their views concerning the coal plant project. ^[15] Mr Walid also said residents have not been provided with enough time to go through the environmental and social impact assessment report that was released by Amu Power Company in order for them to give their opinion. “Even before they approved the project, they had already shown signs of locking us out including changing planned venues for public hearing on the coal project. “We will not relent. We will fight till the end. Our fishermen, mangrove harvesters and the population at large have a stake in sustainable environment that is free from pollution. “The coal plant is harmful and is likely to affect the marine ecosystem and the livelihoods of our people. We won’t accept it,” said Mr Walid. Save Lamu Coordinator Khadija Shekue Famau said despite the concerns raised, there are no proper mitigation measures that the investor has put in place or even explained to the communities and stakeholders how emissions from the plant will be handled.^[16]

Controversy

Community activists and some local officials have also raised the need for revenue sharing for the community, and what conditions would be set for the project to ensure it would benefit the host community, citing the fact that community members affected by the earlier oil infrastructure project known as Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor have not been compensated.^[5] Community, Kenyan and international activists and one of the world's leading economists Joseph Stiglitz have raised serious concerns about the environmental and human health implications of the fossil fuel plant. The population wants cleaner, more progressive renewable energy.^[17][18][19]

History

In January 2014, the Government of Kenya sourced for bids from private developers to build, own, and operate the power station. In September 2014, the development rights were awarded to a consortium of the following entities:^[20]

• Gulf Energy - An independent Kenyan energy generating company
• Centum Investments - A private equity firm, headquartered in Nairobi, with investments in Kenya and Uganda.
• Sichuan Electric Power Design and Consulting Company Limited (SEDC) - A subsidiary of Power Construction Corporation of China (PowerChina)

Two of the losing bidders challenged the award in court. An arbitration tribunal, however, upheld the award in January 2015.^[21][22]

Developers and financing

The power station will be built using private funds on a build-own-operate model. The developers will own and operate the plant for 25 years from commissioning. The expected construction costs for the coal plant will be about US$2 billion (KES:180 billion). Of this, approximately US$500 million will be generated internally while the balance will be borrowed.^[22][23]

Amu Power Company, a special purpose vehicle formed by the developers, will develop, own and operate the station as part of the "Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor".^[24]

In July 2016, Standard Bank of South Africa and ICBC agreed to jointly fund the $300 million that was needed to close the deal.^[25]

See also

• List of power stations in Kenya

References

External links

• Coal Plant To Tap Local Lenders for KSh18.2 Billion (US$200 Million