EABL to stop using Kenya Power in Sh22bn plan

East Africa Breweries Limited #ticker: EABL (EABL) plans to stop using Kenya Power’s electricity to power its Kenyan factories, intensifying the shift of companies to generate their own power from solar energy.

KBL Managing Director John Musunga said the brewer is aiming to divest itself from Kenya Power by 2030 under a $ 22 billion plan.

The brewer’s investments come amid a warning from Kenya Power that some of its industrial customers, who account for about 68.31 percent of its sales revenue, are gradually switching to self-generated solar power, which deals a new blow to his already dwindling finances.

Diageo-owned EABL aims to generate at least 9.3 megawatts at its Ruaraka plant and 2.4 megawatts of solar power at Kisumu in the 100 percent switch to green power.

“We are committed to supplying 100 percent renewable electricity by 2030 at all of our facilities. The investment of 22 billion shillings also includes the production of biofuel, ”said Musunga.

“This is already being implemented in part at our Kisumu plant, and 10 percent of our current electricity requirements are met by renewable energy from solar energy,” he added.

The billions of shillings investment also includes the production of biofuels that will help the brewery reduce carbon emissions by 95 percent (about 42,000 tonnes of carbon per year) and create more than 900 direct jobs and indirect throughout the supply chain.

Musunga said the investment will be rolled out early next year, representing Diageo’s largest climate action investment in sub-Saharan Africa.

KBL joins a list of companies, universities and factories that have turned to grid-connected solar photovoltaic (PV) systems to supply power for internal use to ensure reliable supply and reduced operating costs.

Large energy consumers such as Africa Logistics Properties (ALP), Mombasa International Airport, the International Center for Insect Physiology and Ecology (Icipe) have recently commissioned solar power units at their properties.

Large energy consumers such as Africa Logistics Properties (ALP), Mombasa International Airport, the International Center for Insect Physiology and Ecology (Icipe) have recently commissioned solar power units at their properties.

The big shift towards solar energy by large consumers has pushed Kenya Power into a deeper dilemma in the wake of excess electricity production.

Power generators have increased production amid reduced household and business consumption in the wake of Covid-19.

Payments for idle electricity are a cost passed on to consumers thanks to a take-or-pay clause contained in contracts signed between the government and power producers, which obliges Kenya Power to purchase the agreed amount of electricity independently. of necessity.