East Africa Breweries Limited (EABL) is investing in a major green energy system that will soon see it delink from Kenya Power. The brewer is investing US $200 million on solar power system that will drive its Kenyan factories, intensifying the shift by firms to generate their own power from solar.
Kenya Breweries Limited (KBL) managing director John Musunga said the brewer is targeting to shift 100 percent to green energy and delink from Kenya Power by 2030. The target is to generate at least 9.3MW at its Ruaraka plant in Nairobi and 2.4MW from solar power in Kisumu.
The brewer’s investments comes amid an outcry from Kenya’s utility provider Kenya Power that some of its industrial customers — who account for about 68.31 percent of its sales revenues — are gradually shifting to own-generated solar power, dealing a further blow to its already dwindling revenues.
According to Mr Musunga, EABL is committed to sourcing 100 percent renewable electricity by 2030 in all of its facilities with the production of biofuel included in the US $200 million.
The production of biofuels will help the brewer reduce carbon emissions by 95 percent (about 42,000 tonnes of carbon a year) and create over 900 direct and indirect jobs throughout the supply chain.
Mr Musunga confirms that the plan is already being partly implemented in the Kisumu plant, with 10 percent of its current electricity requirements being met by renewable energy from solar.
READ: Industrial shift to Solar Energy spurs debate in Kenya
The mega investment, representing the single largest climate action investment by Diageo across Sub-Saharan Africa, will be rolled out at the start of 2022.
KBL joins a list of industrial companies and factories that have turned to solar photovoltaic (PV) grid-tied systems to supply power for internal use to ensure reliable supply and reduced operational costs.
Some heavy power consumers such as Mombasa International Airport, have recently commissioned solar power units on their properties. The big shift to solar power by heavy consumers has pushed Kenya Power into deeper dilemma in the wake of excess production of electricity.
Power generators have raised production amid reduced consumption by homes and businesses in the wake of Covid-19.
Payments for idle electricity is a pass-on cost to consumers thanks to a take-or-pay clause contained in contracts signed between the government and power producers, compelling Kenya Power to buy the agreed amount of electricity regardless of need.
