Courts Block Kenyan Coal Plant

Kenya’s National Environment Tribunal has ruled against a $2 billion planned coal power station near Lamu.

The project, which was to be located near a tourist hot spot and UNESCO World Heritage site, has attracted strong opposition from activists and local communities.

Activists argue that the project does not make sense at a time when many countries are divesting away from coal and given the country’s access to various renewable energy sources such as wind, solar and geo-thermal. Estimates suggest the plant could increase greenhouse emissions in the country by as much as 700%, yet Kenya has pledged to reduce its carbon footprint by almost a third over the next ten years.

The economic sense of the project has also been called into question. The $2 billion project is being financed by China, with construction to be led by China Power Global. However, the US-based Institute for Energy Economics and Financial Analysis has warned that electricity generated at the plant could cost 10 times initial estimates. Their report assessing the project also points to the potential problems caused by a $360 million annual payment requirement, which stands whether any power is generated by the facility of not. Meanwhile, fishermen in the area claim that construction in the area has already had a big impact on their catch.

The government defended plans on the basis that the project would help serve energy needs, fuel economic growth and create jobs.

Ruling on the case, Judge Mohammed Balala set aside the previous decision to grant developments Amu Power a licence and ordered them to conduct a new environmental impact assessment if they wish to proceed.