ERC reviewing Amu Power license application

The Energy Regulatory Commission (ERC) has clarified it is still reviewing the application for a coal fired power plant by Amu Power.

This follows reports that the regulator had revoked the firm’s license, further pushing back plans to construct a 1,050 megawatt plant in Lamu.

ERC Director General Joseph Ng’ang’a said issuance of the license has been put on hold pending the determination of a case filed by Save Lamu Natural Justice that is seeking to have the project terminated.

The lobby group filed its object to the project on the same day Amu Power was presenting its application, forcing the regulator to review the objection.

“As required by the act and the regulations, the commission shelved the consideration of the application for the license by Amu Power pending determination of the Save Lamu Natural Justice objection. Thereafter, the commission will make its decision on Amu Power’s application,” Eng Ng’ang’a said in a statement.

The regulator is mandated by law to review all objections for proposed power plans before giving the green light.

Construction of the Sh200 billion project, being undertaken by a consortium of Gulf Energy and Centum Investments, was initially expected to start in 2015.

Land acquisition and NEMA hurdles have slowed down the progress for Kenya’s first coal power plant.

The lobby group is concerned that power production using coal will have irreversible effects on the environment as well health risks for residents.

Amu Power signed a power purchase agreement with Kenya Power to sell electricity at Sh7.50 per kilowatt hour, making it cheaper than thermal power plants.

The government has been engaging private sector players to generate electricity as part of plans to hit 5,000 megawatts.

Kenya has an installed capacity of 2,333 megawatts.