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Kenya: Optimization of Kiambere Power Station Project
(Community Development Carbon Fund)

UNFCCC Reference No.: 7783

Project Photo 1

Project Description:
The project aims to upgrade the turbines at the existing Kiambere Power plant to increase output by an additional 20 MW (and estimated annual incremental generation of 60Gwh) of renewable energy while displacing electricity generated by fossil fuel power plants. Kiambere is the fifth power station in the Seven Forks Cascade in the River Tana Basin and the second largest hydropower station in the cascade. The Kiambere plant was commissioned in 1988 with a capacity of 144 MW. As it is currently fed by water from the lower dam on the Tana, the plant runs mostly as baseload. The project will generate an estimated 35,640 tCO2e per year over a 7 year crediting period and the CDCF will purchase 162,000 ERs from the project by December 2014.

Project Photo 2

Current Context:
Power demand in Kenya has risen considerably owing to the country’s recent improved economic growth. The recorded peak demand leaves a reserve margin between supply and demand far below the recommended 15 percent to allow for any plant outage, which is required during maintenance. Moreover, in recent years, Kenya has experienced severe droughts that have led to low water levels in the reservoirs affecting power generation negatively. Demand is projected to rise at an average of 150 MW per year. With this rising demand, the reserve margin will continue to drop significantly, leading to power rationing during peak hours. KenGen (Kenya Electricity Generating Company Ltd.) is the major supplier of electricity in Kenya, contributing about 85 percent of all power consumed in the country. In the absence of the Olkaria geothermal project, KenGen would install medium-speed diesel as a source of power, thereby increasing emissions of carbon dioxide and sulfur oxides to the atmosphere. KenGen is also stepping up its capacity expansion program to keep up with the rising demand as well as to mitigate any adverse hydrological phenomena that might recur in the future.

Community Benefits: 
Aside from gaining more access to electricity, the local community will benefit from a community benefits plan. Kiambere is part of the Seven Forks Cascade in the River Tana basin, an area that has suffered severe drought and that is poorly served with education and health services.  Currently communities have to travel over four hours a day for water, and schooling facilities are distant and inadequate. The targeted communities are the local Masai, Luo, and Kikuyu communities living in the vicinity of the plant. There is also a need for local health services, currently available only in Naivasha, a city which has been deeply affected by recent turmoil in Kenya. The influx of refugees will put a severe strain on already limited resources. CBP deliverables could include the following:

Deliverables Description
Access to water A water line will be built from the dam to Kiambere community. The distance traveled to reach potable water will be reduced from the current 17 kilometers to at most 5 kilometers.
Updated health care center  The dispensary to a healthy center will be upgraded by adding a maternity wing and male, female, and children wards. The center will provide services to 5,000 people.
New small dispensary at Katithini village A new dispensary will be built in a more central location, benefiting 3,000 people. It will reduce access to health facilities from 11 kilometers to at most 3 kilometers.
New primary school  A five-classroom school will be built in Ikomeni, and classrooms in the Ngiiri primary school for over 800 pupils will be improved.

Time Frame: 2010-2014

Monitoring Plan:
KenGen will provide an annual report on the progress that has been made in the implementation of the community benefits plan during the previous calendar year. The report will include a detailed description on the status of implementation of activities that create the local community benefits.

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