NAIROBI, Kenya- Lake Turkana Wind Power (LTWP), Kenya’s flagship renewable energy project, is facing a roadblock in its carbon credit ambitions due to an ongoing land dispute with the local community in Marsabit County.
This impasse has not only hindered the sale of carbon credits but has also complicated the company’s efforts to support local communities through the proceeds.
LTWP, which contributes significantly to Kenya’s national grid with clean energy, has been mired in a legal battle over the land it occupies.
The High Court ruled that the land acquisition process was flawed, a decision that has sparked a protracted dispute.
Max Schiff, LTWP’s Chief Executive, highlighted the impact of this legal tussle on their carbon credit sales during the launch of the company’s 2023 Sustainability Report in Loiyangalani, Marsabit County.
“We have issued carbon credits for four years now, but we have struggled to sell them. We have a publicised legal case over the land here,” Schiff noted, underscoring the challenges the company faces in monetizing these credits.
Carbon credits, a key tool in combating climate change, are essentially a way for companies to offset their carbon emissions by investing in environmental projects like renewable energy.
However, for LTWP, turning these credits into cash has proven difficult. The ongoing land dispute isn’t the only hurdle; Schiff also pointed out that current market prices for carbon credits are not favorable.
“We haven’t been able to sell also because the price is not good. The cost for us is poor right now, but we are working on ways to increase our value,” he explained.
Despite these setbacks, LTWP remains committed to finding ways to monetize its carbon credits, which are intended to benefit the local community.
The company’s efforts to resolve the legal issues and improve the value of its credits are crucial steps toward achieving this goal.
LTWP’s contribution to Kenya’s renewable energy landscape is undeniable. In 2023, the wind farm generated 1,481 Gigawatt hours (GWh) of clean energy, accounting for 11.04pc of Kenya’s total electricity production, and preventing 605,428 tonnes of CO2 emissions.
However, this was a slight decrease from 2022, where carbon emissions offset by the firm were 680,000 tonnes. The company attributed this reduction to variations in wind patterns and maintenance schedules that affected overall energy production.
Mugo Kibati, LTWP’s Chairman, remains optimistic about the future. He noted that once the credits start generating revenue, the local community will see tangible benefits.
However, until the land dispute is resolved and market conditions improve, the full potential of LTWP’s carbon credits remains untapped.
While the company’s renewable energy contributions are significant, the unresolved land dispute and fluctuating carbon credit prices pose significant obstacles.
