During the United Nations General Assembly (UNGA) 2019 proceedings, AfDBs president, Akinwumi Adesina, highlighted strategic plans in Africa to take advantage of the vast natural resources in the continent, to enhance power production.
The ongoing United Nations Climate talks in New York have highlighted ambitious plans by countries to manage climate change. Several African countries have committed to take measures aimed at managing climate change.
Akinwumi Adesina took the opportunity to emphasize AfDB’s stand of not supporting any African country planning to set up coal thermal power plants. The AfDBs president made the declaration to world leaders from 200 countries around the globe.
“Coal is the past, and renewable energy is the future. For us at the African Development Bank, we’re getting out of coal.”
Akinwumi Adesina , AfDB President
On June 25th 2019, Kenya’s plan to build a coal plant in Lamu was halted by the National Environmental Tribunal. The tribunal ordered a redo of the Environmental and Social Impact Assessment.
The Lamu Coal project, an estimated $2 billion venture is an Initiative by the Chinese and Kenyan Venture capital firm Centum and Omans Gulf Energy.
The Coal power plant to be put up in Lamu is targeted to produce 1,050 MW. KPLC is set to be the primary Power purchaser under a 25-year PPA (Power Purchase Agreement) and KETRACO to build its transmission infrastructure of 400kV line to Nairobi.
Many developed countries are reducing their carbon load production through decommissioning coal plants and fulfilling requirements of the Paris Climate Agreement 2015.
Over the past years, foreign organizations have pushed to set up more coal power plants in Africa. 11 African countries including Ghana, Ivory Coast, Madagascar Malawi, Nigeria have announced plans to construct coal power plants.
Four more countries are looking to increase the production capacity of their already installed coal power plants. Chinese Investment firms support most of these coal projects in Africa through the Belt and Road Initiative (2018 coal plant developers list: regional briefing; Urgewald, Oct 2018)
According to the “Light-up Africa” report by AfDB, over 645 million Africans do not have access to power. With the current rapid growth of economies, power will be an essential requirement to cushion the fast-growing economies in Africa.
AfDB has set aside a $500 million green baseload scheme to assist African countries to reach their goal of 100% renewable energy.
Akinwumi highlighted three main plans by the AfDB.
- •To double its climate finance to $25 billion between 2020-2025.
- •To build Africa’s Risk financing program where $250 Million will be collected for insurance premiums with a potential payout of about $ 1 billion to the reinsurance market by 2030.
- •To develop the Desert to Power project by constructing a solar zone in the Sahel desert with the potential of generating 10GW from Solar energy.
“There’s a reason God gave Africa sunlight.”
Akinwumi Adesina, AfDB President
Related:
Construction of Lamu Coal Plant halted
Kenya’s 80MW Utility-Scale Solar Plants Projects to Receive Funding
