Why EU Wants Kenya to Drop Sh180 Billion Project

  • The European Union (EU) has asked Kenya to ditch the Sh180 Billion Lamu Coal Power Station project.

    Speaking on Tuesday, Ambassador Stefano Dejak explained that demand for coal was declining as other nations were shifting to more sustainable options.

    “Coal has fallen out of favour in the modern market, why would Kenya want to go down that route?” Dejak posed.

    He asked Kenya to shift focus to geothermal, wind and solar plants.

    The Energy Regulatory Commission (ERC) recently overruled objections from environmentalists and Lamu residents who wanted the project stopped over fears that it would negatively impact the environment.

    [caption caption="Lamu residents protest against the plant"][/caption]

    They also complained that it would affect Lamu's status as a world heritage site.

    The plant is projected to have a capacity of 1,050 MegaWatts, the equivalent of 44 percent of Kenya's current full power capacity.

    Of all the major fossil fuels, coal is the most polluting and is blamed for dangerous greenhouse gas emissions.

    Amu Power, the company behind the project, was expected to begin construction in 2015 but has faced numerous hurdles since.

    The special-purpose vehicle is backed by a consortium that includes Centum Investments and a number of Chinese companies.

    [caption caption="Ambassador Stefano Dejak"][/caption]