A cooperative declaration was released by the World Bank, the International Energy Agency, the World Health Organization, and the IRE on 28 May. Consequently, this is not so often the case, and their message for Kenya and East Africa is significant. The organizations also reported that Covid-19’s core message is that sustainable energy funding, for both household and business, stayed competitive, whereas carbon fuel vessel investment disappeared. Capital expenditure in natural gas nationwide has already dropped by 3%, petroleum by 4%, and coal by almost 10% over the last three months internationally.
There are several explanations, but everyone clearly shows that Kenya would be deeply affected by the planned Lamu coal power plant.
We do not recognize when social and environmental conditions will strengthen as Kenyans strive to remain healthy and gain sustenance. The pandemic further leads to global hurdles like malnutrition, joblessness, power shutdowns, flooding, and urban invasions. A coal-fired factory only renders the country more affected. Initially, big, costly, and expensive coal plants, whereas the best power solutions are simple, flexible, and well working with other sources of electricity.
The pandemic illustrates the risk of getting into rigid deals with massive fossil fuel energy facilities like Lamu gas. Coal energy was not economically meaningful before the epidemic. The analysts argue that Kenya’s power production was going to develop by 11.5% to 15% annually as a justification for the Lamu coal-fired power plant. Also, Kenya’s power costs have gone up for over a generation by around 6 percent. Yet in 2019, EPRA indicated that “the large underutilized coal-fired power station might also develop relatively,” leading to “the fast increase in energy rates, reaching an Sh16.86 / kilowatts by 2024.”
Every justification has almost vanished for Lamu coal. Likewise, it would leave the Lamu power station idle-becoming an economic burden for decades. The move will not be the result of Vision2030. Covid-19 has altered the global financial system profoundly. Once the pandemic decays and energy consumption eventually returns, the unknown environment and industrial markets, capital investment will arise.
The nation will encounter a burden by the Lamu coal project’s financial commitments and uncertainties by 2045. The proposal contracts have been reviewed on the Treasury’s accountability website, revealing unfavorable terms and conditions for the citizens in Kenya. Also, it is still possible to call off the work effectively, although it is still underway. A coal plant will not fix the nation’s current breakdowns and intermittences. Kenya now generates ample power to achieve demand, but the issues remain.