CDM Potential: Menengai and Olkaria Geothermal Power Projects in Kenya

Abstract

The current climate-energy concerns and effects have resulted in shifting developmental perspectives towards Clean Development Mechanisms (CDM). Kenya, with a current energy deficit of about 1191MWe per annum against an effective installed capacity of 1429MWe, is in the process of expanding existing energy resources with a focus on clean renewable energy. Hydropower yields most of the energy but has been unreliable due to unpromising hydrological conditions. Contributing about 14% of installed capacity, geothermal energy presents a potential in excess of 10,000 MWe along the Kenyan Rift Valley, and the thrust to develop 5000 MWe by the year 2030. Although a high initial capital investment is required, CDM could help unlock this potential. Two 140 MWe (Olkaria I and IV) and a 400MWe (Menengai I) geothermal power plant are envisaged between the years 2012 and 2016. This paper examines CDM potential for the three projects and the estimated emission reductions upon implementation of each project. The Approved Consolidated Methodology ACM0002 version 12 was used in the computation of the emission reductions. Upon registration under the CDM, about 3,044,129 tCO2-eq will be reduced annually at an expected generation capacity of 5,309,200MWh/year. The three projects could thus generate USD 213 million in the first 7 year crediting period accelerating the development process whilst sustaining environmental and social benefits. This achievement is anticipated to ensure both intra and inter-generational equity.