September 9, 2019 Read More →

Kenya: Lamu Coal Investors Appeal Ruling That Revoked License

Africa News:

Investors in Kenya’s controversial coal power plant in Lamu on the Coast have appealed against a ruling that revoked the project’s license.

In its appeal filed in the Environment and Land Court in Malindi, Amu Power — a consortium of Kenyan and Chinese firms — contends that the National Environment Tribunal (NET) erred in cancelling the environmental social impact assessment (ESIA) licence solely based on purported flaws in the consultation process.

The company also argues that the tribunal erred in holding that it did not conduct a proper analysis of the alternative sites for the project and that the ESIA study did not contain adequate mitigation measures.

The decision by Amu Power to appeal the revocation of the $2 billion plant opens another battlefront with environmentalists, conservationists and non-governmental organisations opposed to the project on the basis that it will have adverse impacts on the Lamu ecosystem, which is recognised as a UNESCO World Heritage Site.

Despite its determination to implement the project, analysts reckon that building the plant will not translate into cheap electricity but will be a “costly error” going by a research by the Institute for Energy Economics and Financial Analysis (IEEFA).

“Building the proposed Lamu coal plant would be a costly error for the country, locking it into a 25-year PPA that would force electricity consumers to pay more than $9 billion, even if Lamu doesn’t generate any power, as long as it is available for dispatch,” said IEEFA.

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