Thursday, September 20, 2012
The Ksh.1.32Billion Ngong Wind Power Phase 2
The loan includes a state-to-state zero interest credit agreement of six million euros and a concessional credit agreement with the KBC Bank of Belgium of 6.36 million euros.
Speaking during the signing of the Ngong Hills Wind Turbine Electricity Generation Project phase 11, Finance Minister, Njeru Githae, said the loan has come at an opportune time as the country struggles to contain rampant deforestation.
And while Kenya has significant variety of potential energy sources – including hydro-power, geothermal, solar, wind and biomass – wood fuel accounts for 70 per cent of the country’s total energy consumption, with 80 per cent of the population depending on it for domestic energy needs. And the use of wood fuel has had a significant contribution to deforestation.
“Given the environmental negative impact development cost of hydro-electric energy and fuel energy challenges, the future source of clean energy of solar and wind generated electricity is ideal,” Githae told reporters at the Treasury building in Nairobi on Wednesday.
He pointed out that the Government would promote the use of sustainable energy sources to reverse the deforestation trend.“ The exploitation of wind energy currently stands at 0.3 GWH or 0.01 per cent and yet it is abundant in the country,” he said.
Githae also pointed out that the provision of electricity to the Kenyan people is still very low, with a meager 121kw hours per capital. This consumption level translates into one of the lowest rural (four per cent) and national (15 per cent) access rates in the world.
“We are all aware that technological development has made wind powering generation increasingly more attractive in remote areas where there is no access to electric energy,” he added.
He lauded the Government of the Kingdom of Belgium, saying it has supported critical sectors in Kenya, which include health, water, environment, education, information technology and Phase 1 of Ngong Hills Wind Turbine Electricity Generation.
“ We are happy that these efforts will improve the energy supply in the country that will in turn spur economic growth,” said Githae.
Githae said the Government would maintain a stable macroeconomic environment with constitutional and structural reforms being undertaken since 2010.
Specifically, the minister cited the devolution of some government activities to the counties would lead to widespread economic growth, wealth and employment creation.
Adapted From The Standard Digital
at 6:52 AM