Page 14 - AfrElec Week 19 2021

AfrElec NEWS IN BRIEF AfrElec

Clear ESG targets and measurements have delivery and stem electricity theft. tax of Sh332mn for the half-year period ended
become an increasingly important part of The partnership, which is in line with the December 31, 2020.
fundraising as investors seek to align their company’s losses reduction strategy, will see
portfolios with sustainable growth. the power utility firm recover at least KES2bn
For a continent boasting ample natural in the three informal settlements through the
resources, this presents a significant collaboration. ENERGY STORAGE
opportunity for Africa’s green energy sector. The firm will also open offices in Mathare,
However, renewable does not always equal Mukuru and Kibera to help address customer USTDA funds feasibility
sustainable and developing and articulating issues such as power outages, bill queries,
ESG metrics can pose a significant challenge and new connections among others. “Under studies for Mozambique,
to projects as they prepare investment rounds. the partnership, the CBOs will act as the
Veronica Bolton-Smith, COO of Invest company’s ambassadors and report issues to Senegal battery storage
Africa, said: “Africa is particularly vulnerable teams based in the new offices,” said Kenya
to the impact of climate change despite Power Managing Director Bernard Ngugi. projects
contributing very little to global emissions. “Kenya Power will continue to carry
As the price of renewables falls, they will out network maintenance and ensure that US Trade and Development Agency (USTDA)
form an ever more important part of Africa’s all customers in informal settlements are funding has been allocated to feasibility
electrification. properly metered. We are confident that studies for large-scale battery storage projects
“In this context, it is essential that projects through this collaborative effort, we will co-located with wind power in Senegal, west
be given the tools to apply best practice achieve our goal to provide quality, reliable Africa and Mozambique, in southeastern
in ESG not only from an environmental and safe power in informal settlements,” Africa.
perspective but also in terms of good added Ngugi. A grant of just under a million US dollars
governance, fair working conditions and He said the national grid has expanded was made by USTDA last year for the Senegal
contribution to social inclusion. I look over the last five years, with high and medium Battery Storage for Grid Resiliency Project,
forward to working closely with DLA Piper on voltage network growing from 56,611 paid to Lekela Energie Stockage, a special
this important topic.” kilometres (km) in circuit length to 84,681km purpose vehicle (SPV) subsidiary set up and
The project will host a series of online as at end of June 2020. owned by renewable project developer Lekela
meetings, gathering experts from the worlds This, he noted, has seen the customer base Power.
of impact investment, development finance increase from 2.3mn to 8.1mn. In the financial Europe-headquartered but focused on
and law. Participants will have the opportunity year ending June 2020, total system losses developing assets in Africa, Lekela Power
to discuss strategies to improve ESG practices stood at 24.7%. operates three large wind farms in South
in African renewable projects from both a Mr Ngugi said the war on losses is one Africa as well as the largest wind farm in
fundraising and operational perspective. The of the company’s key cogs in its turnaround Senegal, the Parc Eolien Taiba N’Diaye
inaugural session will be hosted on 13 May strategy in addition to the CBO approach. 158.7MW facility. With the battery energy
2021. The firm is also implementing a smart meter storage system (BESS) set to be co-located
Natasha Luther-Jones, Global Co- programme in which 6,623 large power at that wind project, Lekela selected
Chair Energy and Natural Resources and consumers and 55,000 small and medium international accreditations and professional
International Co-Head Sustainability and ESG enterprises will have benefitted by June 30, services group DNV as a contractor to give
at DLA Piper, also commented, “…Renewable this year. owner’s engineering support for the battery
energy companies are not automatically The firm said the approach has begun to project, DNV said a couple of weeks ago.
sustainable as sustainability is a focus on all bear fruit. Kenya Power posted a profit before DNV said the Taiba N’Diaye project,
ESG factors, not just environmental.
“We know the need for renewable energy
is only going to continue to rise, and therefore
so will the number and size of renewable
energy companies. The additional challenge
is to make sure they are truly sustainable
organisations and that’s what we’re excited
about discussing during the webinar.”

GRID
Kenya Power eyes KES2bn

from reduced illegal
connections

Kenya Power has partnered with Community-
Based Organisations (CBOs) in Mathare,
Mukuru and Kibera to enhance service

P14 www. NEWSBASE .com Week 19 13•May•2021