Nairobi - Kenya Power and Lighting (KPLC) signed a deal on Friday with Standard Bank Group [JSE:SBK]
to develop clean energy projects for sale under the United Nation's clean energy initiative.
Under the UN's clean development mechanism (CDM), companies in developing nations earn carbon credits for helping prevent the release of carbon dioxide by building clean energy projects.
The first CDM project by the two is for 90 000 tonnes of carbon dioxide that have not been released into the atmosphere as a result of KPLC distributing 1.25 million free energy-saving bulbs across the east African nation earlier this year.
"The contract with Standard Bank for development of CDM projects will be valid for five years, while the sale of carbon credits for successful projects will continue for the relevant crediting period according to each project," KPLC CEO Joseph Njoroge told a news conference.
The KPLC, Kenya's monopoly electricity distributor, handed out free bulbs worth 430m shillings, which it says helped cut peak electricity demand by 45 megawatts and saved 7.0bn Kenya shillings ($86.95m).
The carbon emissions saved through the project could earn the company about 100m shillings, Njoroge said. The project is yet to receive UN approval.
The KPLC hopes to launch up to two clean energy projects annually, such as light-emitting diode (LED) lighting.
"It is a real business and a business that will add value to our shareholders," Njoroge said.
Earlier this week, Standard Bank said it had purchased 700 000 carbon credits to fund a clean energy project to replace kerosene lamps with LED lamps in Tanzania.