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| − | {{CES Country | + | {{CES Country|CES Country Name=Kenya |
| − | |CES Country Name=Kenya | + | |
| | |CES Country Capital=Nairobi | | |CES Country Capital=Nairobi |
| | |CES Country Region=Africa | | |CES Country Region=Africa |
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| | In comparison, the Kenya’s Rural Electrification Fund, which costs all electricity consumers 5% of the value of their monthly electricity consumption (currently an estimated 16 million US$ annually), is responsible for 70,000 connections. With access to loans and fee-for-service arrangements, estimates suggest that the SHS market could reach up to 50% or more of un-electrified rural homes. | | In comparison, the Kenya’s Rural Electrification Fund, which costs all electricity consumers 5% of the value of their monthly electricity consumption (currently an estimated 16 million US$ annually), is responsible for 70,000 connections. With access to loans and fee-for-service arrangements, estimates suggest that the SHS market could reach up to 50% or more of un-electrified rural homes. |
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| − | Since 2006-2007, the Ministry of Energy has been actively promoting use of solar energy for off grid electrification. In particular, it has funded the solar for schools programme and is targeting to extend this to off grid clinics and dispensaries. Grid connected PV systems covering an area of 15-20 km<sup style="line-height: 1.5em;">2</sup>(3% of the Nairobi area) could provide 3801 GWh of electrical energy a year, equivalent to the total grid electricity sales for Kenya in 2002-2003. The costs, however, are prohibitive<ref name="Energy resource">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: II - Energy Resource. </ref>.There are about 4 million households in rural Kenya alone which present a vast potential for this virtually untapped technology. The off grid market is estimated to be over 40MW. | + | Since 2006-2007, the Ministry of Energy has been actively promoting use of solar energy for off grid electrification. In particular, it has funded the solar for schools programme and is targeting to extend this to off grid clinics and dispensaries. Grid connected PV systems covering an area of 15-20 km<sup style="line-height: 1.5em">2</sup>(3% of the Nairobi area) could provide 3801 GWh of electrical energy a year, equivalent to the total grid electricity sales for Kenya in 2002-2003. The costs, however, are prohibitive<ref name="Energy resource">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: II - Energy Resource. </ref>.There are about 4 million households in rural Kenya alone which present a vast potential for this virtually untapped technology. The off grid market is estimated to be over 40MW. |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | + | <br/> |
| | | | |
| | === Solar Hybrid mini-grids === | | === Solar Hybrid mini-grids === |
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| | - ProSolar assisted Marsabit and Turkana Counties in the development of energy sector plans, which serve as a benchmark in strategizing, mapping and monitoring the distribution and use of energy within the county. Furthermore, the MoEP has been supported in developing a coherent framework for county energy sector plans. | | - ProSolar assisted Marsabit and Turkana Counties in the development of energy sector plans, which serve as a benchmark in strategizing, mapping and monitoring the distribution and use of energy within the county. Furthermore, the MoEP has been supported in developing a coherent framework for county energy sector plans. |
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| − | - In a competitive tendering process private developers have been selected to receive financing through the Result-based-funding ([[:File:Mini-Grids_RBF_Brochure.pdf|RBF]]) component for developing three mini-grids in Turkana County. | + | - In a competitive tendering process private developers have been selected to receive financing through the Result-based-funding ([[:File:Mini-Grids RBF Brochure.pdf|RBF]]) component for developing three mini-grids in Turkana County. |
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| | *For more information on the ProSolar project, you can click [[:File:2016 GIZ ProSolar brief Leading the way to rural electrification.pdf|here]] for the 2016 factsheet, [https://www.giz.de/en/worldwide/25332.html here] for the official page of the project in the GIZ portal and [http://www.renewableenergy.go.ke/index.php/content/66 here] to find the publications of ProSolar within the Energy Regulatory Commission (ERC) Renewable Energy Portal.<br/> | | *For more information on the ProSolar project, you can click [[:File:2016 GIZ ProSolar brief Leading the way to rural electrification.pdf|here]] for the 2016 factsheet, [https://www.giz.de/en/worldwide/25332.html here] for the official page of the project in the GIZ portal and [http://www.renewableenergy.go.ke/index.php/content/66 here] to find the publications of ProSolar within the Energy Regulatory Commission (ERC) Renewable Energy Portal.<br/> |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | + | <br/> |
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| | === Solar Energy: Case Study === | | === Solar Energy: Case Study === |
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| − | In 1995, the US-based group ''''Solar Cookers International' (SCI)''' started a pilot project in Kakuma that addressed this problem by providing refugees with portable, lightweight solar cookers called 'CooKits'. The project [[Kenya:_Best_Practice_Case_Studies#Solar_Cookers:_Expansion_of_Solar_Cooking_Program_at_Kakuma_Refugee_Camp.2C_Kenya|Solar Cookers: Expansion of Solar Cooking Program at Kakuma Refugee Camp, Kenya]] distributed the CooKits and taught people how to use them effectively. The aim was to demonstrate that solar cooking was a practical alternative that would save both money and wood.<br/> | + | In 1995, the US-based group ''''Solar Cookers International' (SCI)''' started a pilot project in Kakuma that addressed this problem by providing refugees with portable, lightweight solar cookers called 'CooKits'. The project [[Kenya: Best Practice Case Studies#Solar Cookers: Expansion of Solar Cooking Program at Kakuma Refugee Camp.2C Kenya|Solar Cookers: Expansion of Solar Cooking Program at Kakuma Refugee Camp, Kenya]] distributed the CooKits and taught people how to use them effectively. The aim was to demonstrate that solar cooking was a practical alternative that would save both money and wood.<br/> |
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| | *For more information on the impacts and benefits of the project, click [[Kenya: Best Practice Case Studies#Implementation Strategy|here]]. | | *For more information on the impacts and benefits of the project, click [[Kenya: Best Practice Case Studies#Implementation Strategy|here]]. |
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| | [[#toc|►Go to Top]] | | [[#toc|►Go to Top]] |
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| | + | <br/> |
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| − | | + | <br/> |
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| | == Coal<br/> == | | == Coal<br/> == |
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| − | The Ministry of Energy has identified two areas with possible commercially exploitable quantities of coal. These are the Mui basin of Kitui and Mwingi Districts and Taru basin of Kwale and Kilifi Districts. As of 2007, 10 wells have been drilled in Mui basin with encouraging results indicating <g class="gr_ gr_14 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="14" data-gr-id="14">possible</g> existence of commercial quantities of coal. | + | The Ministry of Energy has identified two areas with possible commercially exploitable quantities of coal. These are the Mui basin of Kitui and Mwingi Districts and Taru basin of Kwale and Kilifi Districts. As of 2007, 10 wells have been drilled in Mui basin with encouraging results indicating possible existence of commercial quantities of coal. |
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| | *For more information on fossil fuel resources in Kenya, click [[Fossil Fuel Resources in Kenya|here]]. | | *For more information on fossil fuel resources in Kenya, click [[Fossil Fuel Resources in Kenya|here]]. |
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| | <br/> | | <br/> |
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| − | A [https://en.wikipedia.org/wiki/Lamu_Coal_Power_Station 1,050 MW coal-fired power plant] has been proposed in Lamu, the north coast of Kenya along the Indian Ocean, as part of the [https://en.wikipedia.org/wiki/Lamu_Port_and_Lamu-Southern_Sudan-Ethiopia_Transport_Corridor Lamu Port-Southern Sudan-Ethiopia Transport Corridor] <span style="color: rgb(34, 34, 34); font-family: sans-serif; font-size: 14px; background-color: rgb(255, 255, 255);">(LAPSSET) </span>project linking the three countries. <span> </span><br/> | + | A [https://en.wikipedia.org/wiki/Lamu_Coal_Power_Station 1,050 MW coal-fired power plant] has been proposed in Lamu, the north coast of Kenya along the Indian Ocean, as part of the [https://en.wikipedia.org/wiki/Lamu_Port_and_Lamu-Southern_Sudan-Ethiopia_Transport_Corridor Lamu Port-Southern Sudan-Ethiopia Transport Corridor] <span style="color: rgb(34, 34, 34); font-family: sans-serif; font-size: 14px; background-color: rgb(255, 255, 255)">(LAPSSET) </span>project linking the three countries. <span> </span><br/> |
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| | <br/> | | <br/> |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
| − |
| |
| − | [[Category:Coal]]
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| − | [[Category:Kenya]]
| |
| | | | |
| | = Key Problems of the Energy Sector<br/> = | | = Key Problems of the Energy Sector<br/> = |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | + | <br/> |
| | | | |
| | = Policy Framework, Laws and Regulations = | | = Policy Framework, Laws and Regulations = |
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| − | The energy policy for Kenya was adopted in 2004, but recently high oil prices and need for energy security have become more urgent drivers for alternative energy. A new energy policy was drafted in <g class="gr_ gr_442 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-del replaceWithoutSep" id="442" data-gr-id="442">2015,</g> but awaits adoption by Parliament. For Kenya, high oil prices and the need to increase overall energy per capita supply are strong motivators for development of alternative forms of energy. Transportation fuels remain the most emotive of all energy segments, especially when prices are going up, as this is where lifestyles and livelihoods are visibly impacted. Alternative energy is not only focusing on economics <g class="gr_ gr_155 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-del replaceWithoutSep" id="155" data-gr-id="155">alone,</g> but also looks at <g class="gr_ gr_154 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="154" data-gr-id="154">security</g> of supply and <g class="gr_ gr_135 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="135" data-gr-id="135">ther</g> social economic benefits to the country. | + | The energy policy for Kenya was adopted in 2004, but recently high oil prices and need for energy security have become more urgent drivers for alternative energy. A new energy policy was drafted in 2015, but awaits adoption by Parliament. For Kenya, high oil prices and the need to increase overall energy per capita supply are strong motivators for development of alternative forms of energy. Transportation fuels remain the most emotive of all energy segments, especially when prices are going up, as this is where lifestyles and livelihoods are visibly impacted. Alternative energy is not only focusing on economics alone, but also looks at security of supply and their social economic benefits to the country. |
| | | | |
| | '''<u>A number of options are being considered:</u>''' | | '''<u>A number of options are being considered:</u>''' |
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| | Up until the <span data-scayt_word="7th" data-scaytid="4">7th</span> of October 2004, when the Sessional Paper No. 4 was passed in Parliament, Kenya operated without a comprehensive energy policy. | | Up until the <span data-scayt_word="7th" data-scaytid="4">7th</span> of October 2004, when the Sessional Paper No. 4 was passed in Parliament, Kenya operated without a comprehensive energy policy. |
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| − | '''<u>Three key <span data-scayt_word="legislations" data-scaytid="5"><g class="gr_ gr_139 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" id="139" data-gr-id="139">legislations</g></span> that have been in <g class="gr_ gr_186 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="186" data-gr-id="186">application</g> all addressing the commercial energy <g class="gr_ gr_140 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="140" data-gr-id="140">sub sector</g></u><u>:</u>''' | + | '''<u>Three key <span data-scayt_word="legislations" data-scaytid="5"></span></u>''''''<u><span data-scayt_word="legislations" data-scaytid="5">legislations</span></u>''''''<u><span data-scayt_word="legislations" data-scaytid="5"></span> that have been in</u>''''''<u>application</u>''''''<u>all addressing the commercial energy</u>''''''<u>sub sector</u>''''''<u>:</u>''' |
| | | | |
| | *Electrical Power Act of 1997 currently under review | | *Electrical Power Act of 1997 currently under review |
| − | *Petroleum Act Cap 116 – regulates importation, transportation <g class="gr_ gr_187 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep" id="187" data-gr-id="187">and</g> storage | + | *Petroleum Act Cap 116 – regulates importation, transportation and storage |
| | *Petroleum Exploration and Production Act – prior to the deregulation of the petroleum sub-sector, this was the legislation that the government used to control pricing of petroleum products | | *Petroleum Exploration and Production Act – prior to the deregulation of the petroleum sub-sector, this was the legislation that the government used to control pricing of petroleum products |
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| | *Licensing Act – for licensing of operators in for instance in the petroleum and electricity sectors | | *Licensing Act – for licensing of operators in for instance in the petroleum and electricity sectors |
| | *Standards Act | | *Standards Act |
| − | *Environment management and <g class="gr_ gr_142 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="142" data-gr-id="142">coordination</g> Act | + | *Environment management and coordination Act |
| | *Local Government Act | | *Local Government Act |
| | *Physical Planning Act | | *Physical Planning Act |
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| | *Monopolies Act | | *Monopolies Act |
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| − | '''<u>The relevant policy and legal framework for solar energy in Kenya <g class="gr_ gr_189 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace" id="189" data-gr-id="189">includes</g>:</u>''' | + | '''<u>The relevant policy and legal framework for solar energy in Kenya</u>''''''<u>includes</u>''''''<u>:</u>''' |
| | | | |
| | *Session Paper No. 4 on Energy of Kenya | | *Session Paper No. 4 on Energy of Kenya |
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| | The broad objective of the new Energy Policy is to ensure the provision of adequate, quality, cost-effective, affordable supply of energy while ascertaining environmental conservation<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. | | The broad objective of the new Energy Policy is to ensure the provision of adequate, quality, cost-effective, affordable supply of energy while ascertaining environmental conservation<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. |
| | | | |
| − | Kenya does not provide incentives or subsidies for household solar PV systems. Although some strides have been made to improve energy efficiency and renewable energy in Kenya by the government, some planned reforms in the Energy Act are yet to be <g class="gr_ gr_123 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" id="123" data-gr-id="123">effected</g>. <u>These include:</u> | + | Kenya does not provide incentives or subsidies for household solar PV systems. Although some strides have been made to improve energy efficiency and renewable energy in Kenya by the government, some planned reforms in the Energy Act are yet to be effected. <u>These include:</u> |
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| | *Establishment of a Centre of Excellence for Energy Efficiency and Conservation | | *Establishment of a Centre of Excellence for Energy Efficiency and Conservation |
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| | <br/> | | <br/> |
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| − | '''Stockholm Environment Institute (<span data-scayt_word="sei" data-scaytid="11">SEI</span>) '''conducted a study on the economic impacts of climate change in Kenya in 2009 and found that the country’s greenhouse gas emissions are rising quickly. The energy sector emissions are estimated to have increased by as much as 50% over the last decade. As such, Kenya’s Climate Change Response Strategy is keen to reduce these impacts through various avenues including promoting <g class="gr_ gr_145 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="145" data-gr-id="145">use</g> of environmentally friendly energy. | + | '''Stockholm Environment Institute (<span data-scayt_word="sei" data-scaytid="11">SEI</span>) '''conducted a study on the economic impacts of climate change in Kenya in 2009 and found that the country’s greenhouse gas emissions are rising quickly. The energy sector emissions are estimated to have increased by as much as 50% over the last decade. As such, Kenya’s Climate Change Response Strategy is keen to reduce these impacts through various avenues including promoting use of environmentally friendly energy. |
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| | <br/> | | <br/> |
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| | *Protection of environment | | *Protection of environment |
| | *Mobilizing requisite financial resources | | *Mobilizing requisite financial resources |
| − | *Ensuring security of supply through diversification of sources and mixes in a <g class="gr_ gr_136 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="136" data-gr-id="136">cost effective</g> manner (not substitution – which is unrealistic) | + | *Ensuring security of supply through diversification of sources and mixes in a cost effectivemanner (not substitution – which is unrealistic) |
| | *Increasing accessibility of energy services - not only electricity - to all segments of the population | | *Increasing accessibility of energy services - not only electricity - to all segments of the population |
| | *Institutional corporate governance and accountability | | *Institutional corporate governance and accountability |
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| | '''<u>In line with achieving the policy objectives strategic actions need to be taken:</u>''' | | '''<u>In line with achieving the policy objectives strategic actions need to be taken:</u>''' |
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| − | *Training and technology transfer – to build up local/rural capacity for <g class="gr_ gr_125 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="125" data-gr-id="125">small scale</g> development which could subsequently be built up and strengthened | + | *Training and technology transfer – to build up local/rural capacity for small scale development which could subsequently be built up and strengthened |
| − | *Campaigns for identifying exploitable schemes and establishing <g class="gr_ gr_163 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="163" data-gr-id="163">feasibility</g> | + | *Campaigns for identifying exploitable schemes and establishing feasibility |
| | *Technical support for and financing of demonstration schemes to familiarize local personnel with the various technologies | | *Technical support for and financing of demonstration schemes to familiarize local personnel with the various technologies |
| | *Permit gaining operating experience as well as provide an initial basic electricity supply for the local population | | *Permit gaining operating experience as well as provide an initial basic electricity supply for the local population |
| − | *Develop skills Project planning, implementation <g class="gr_ gr_164 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep" id="164" data-gr-id="164">and</g> monitoring. | + | *Develop skills Project planning, implementation and monitoring. |
| | | | |
| − | In addition, energy planning activities should integrate socio-economic, cultural and environmental aspects, which is only possible through strong links between policy makers, implementers and researchers - research findings are infrequently incorporated during the decision making <g class="gr_ gr_128 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="128" data-gr-id="128">process</g> of policy development. | + | In addition, energy planning activities should integrate socio-economic, cultural and environmental aspects, which is only possible through strong links between policy makers, implementers and researchers - research findings are infrequently incorporated during the decision making process of policy development. |
| | | | |
| − | Although economic survey <g class="gr_ gr_182 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-del replaceWithoutSep" id="182" data-gr-id="182">findings,</g> and findings from <g class="gr_ gr_130 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="130" data-gr-id="130">donor funded</g> projects or studies have been used as references in policy development, whether or not these are sufficient is questionable. Little attention is paid to <g class="gr_ gr_131 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="131" data-gr-id="131">University based</g> research findings. These studies are often the source of economic survey <g class="gr_ gr_185 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-del replaceWithoutSep" id="185" data-gr-id="185">data,</g> but receive little or no recognition. Policy makers need to actively engage researchers and there is great need to move towards <g class="gr_ gr_132 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="132" data-gr-id="132">evidence based</g> policy and decision-making - policymaking is not an experimental process<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. | + | Although economic survey findings, and findings from donor funded projects or studies have been used as references in policy development, whether or not these are sufficient is questionable. Little attention is paid to University based research findings. These studies are often the source of economic surveydata, but receive little or no recognition. Policy makers need to actively engage researchers and there is great need to move towards evidence based policy and decision-making - policymaking is not an experimental process<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | '''Legal and Regulatory Framework''' | | '''Legal and Regulatory Framework''' |
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| − | *The enactment of an Energy Agency (EA) to facilitate prudential regulation, enhance stakeholder interests and boost investor confidence. It will consolidate EPA, 97 and the Petroleum Act Cap 116; and bring under its purview the other energy sources not currently covered by other <span data-scayt_word="legislations" data-scaytid="13"><g class="gr_ gr_124 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" id="124" data-gr-id="124">legislations</g></span>. | + | *The enactment of an Energy Agency (EA) to facilitate prudential regulation, enhance stakeholder interests and boost investor confidence. It will consolidate EPA, 97 and the Petroleum Act Cap 116; and bring under its purview the other energy sources not currently covered by other <span data-scayt_word="legislations" data-scaytid="13">legislations</span>. |
| | *Establishing a single independent energy regulator. | | *Establishing a single independent energy regulator. |
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| | *Creation of a Rural Electrification Authority to accelerate rural electrification | | *Creation of a Rural Electrification Authority to accelerate rural electrification |
| − | *Promotion of privately or <g class="gr_ gr_143 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="143" data-gr-id="143">community owned</g> energy service entities operating renewable energy power plants /hybrid systems | + | *Promotion of privately or community owned energy service entities operating renewable energy power plants /hybrid systems |
| − | *Establishment of a <g class="gr_ gr_144 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="144" data-gr-id="144">state owned</g> Geothermal Development Co. to undertake geothermal resource assessment and development and to sell steam to generating entities | + | *Establishment of astate owned Geothermal Development Co. to undertake geothermal resource assessment and development and to sell steam to generating entities |
| | | | |
| | '''Energy Trading Arrangements''' | | '''Energy Trading Arrangements''' |
| | | | |
| − | *Creation of a domestic power pool with provision for wholesale and retail market to create competition and hence reduce <g class="gr_ gr_200 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="200" data-gr-id="200">cost</g> of <span data-scayt_word="electricity7" data-scaytid="15">electricity7</span> | + | *Creation of a domestic power pool with provision for wholesale and retail market to create competition and hence reduce cost of <span data-scayt_word="electricity7" data-scaytid="15">electricity7</span> |
| | *Streamlining biomass energy trading arrangements | | *Streamlining biomass energy trading arrangements |
| | *Increasing lifeline tariff to recover the cost of electricity generation | | *Increasing lifeline tariff to recover the cost of electricity generation |
| − | *Divestiture of <span data-scayt_word="gok" data-scaytid="68">GoK</span> from oil refining, marketing <g class="gr_ gr_201 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep" id="201" data-gr-id="201">and</g> transportation in <span data-scayt_word="favour" data-scaytid="69"><g class="gr_ gr_202 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace" id="202" data-gr-id="202">favour</g></span> of private sector investments in the same | + | *Divestiture of <span data-scayt_word="gok" data-scaytid="68">GoK</span> from oil refining, marketing and transportation in <span data-scayt_word="favour" data-scaytid="69">favour</span> of private sector investments in the same |
| | | | |
| | '''Energy Security''' | | '''Energy Security''' |
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| | *Development of a national energy research agenda | | *Development of a national energy research agenda |
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| − | The Energy Act 2006 is a consolidation of the Electric Power Act and the Petroleum Act <g class="gr_ gr_196 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-del replaceWithoutSep" id="196" data-gr-id="196">2000,</g> and has a section on petroleum and a section on electricity. The energy policy already recognizes the biomass sector and how biomass regulation should be done in terms of pricing and sets a good basis for drafting the biomass plan. It also recognizes the importance of renewable energy and energy efficiency<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. | + | The Energy Act 2006 is a consolidation of the Electric Power Act and the Petroleum Act 2000, and has a section on petroleum and a section on electricity. The energy policy already recognizes the biomass sector and how biomass regulation should be done in terms of pricing and sets a good basis for drafting the biomass plan. It also recognizes the importance of renewable energy and energy efficiency<ref name="Energy policy">GTZ (2007): Eastern Africa Resource Base: GTZ Online Regional Energy Resource Base: Regional and Country Specific Energy Resource Database: IV - Energy Policy. </ref>. |
| | | | |
| | ==== Tax policy ==== | | ==== Tax policy ==== |
| | | | |
| − | Kenya introduced a VAT on solar products totaling 16% in 2013, but the government has now decided that it will dismiss this tax in a move to cut <g class="gr_ gr_134 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="134" data-gr-id="134">cost</g> of renewable energy products. | + | Kenya introduced a VAT on solar products totaling 16% in 2013, but the government has now decided that it will dismiss this tax in a move to cut cost of renewable energy products. |
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| | <br/> | | <br/> |
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| | [[Kenya Energy Situation#toc|►Go to Top]] | | [[Kenya Energy Situation#toc|►Go to Top]] |
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| | = Institutional Set up in the Energy Sector = | | = Institutional Set up in the Energy Sector = |
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| | '''Kenyan Energy Generation Company ''''''(''''''KENGEN)''' | | '''Kenyan Energy Generation Company ''''''(''''''KENGEN)''' |
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| − | *Generation (mainly <g class="gr_ gr_58 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" id="58" data-gr-id="58">geo-thermal</g> and <g class="gr_ gr_59 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" id="59" data-gr-id="59">hydro power</g> plants) | + | *Generation (mainly geo-thermal and hydro power plants) |
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| | '''Kenya Power''' | | '''Kenya Power''' |
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| − | *Distribution of <g class="gr_ gr_60 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="60" data-gr-id="60">grid connected</g> power | + | *Distribution ofgrid connected power |
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| | '''Kenya Electricity Transmission Company Limited (''''''KETRACO)'''<br/> | | '''Kenya Electricity Transmission Company Limited (''''''KETRACO)'''<br/> |
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| − | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255);">Plans, designs, builds, operates and maintains electricity transmission lines and associated substations that form the backbone of the national grid</span<br/> | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Plans, designs, builds, operates and maintains electricity transmission lines and associated substations that form the backbone of the national grid</span</span><br/> |
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| − | '''Kenya Bureau of Standards''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''Kenya Bureau of Standards'''</span> |
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| − | *Standards | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Standards</span> |
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| − | '''National Environmental Management Authority''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''National Environmental Management Authority'''</span> |
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| − | *Environmental Management and Coordination | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Environmental Management and Coordination</span> |
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| − | '''Ministry of Planning, Local Authority''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''Ministry of Planning, Local Authority'''</span> |
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| − | *Physical Planning | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Physical Planning</span> |
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| − | '''Rural Electrification Authority and Ministry of Energy and Petroleum (REA)''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''Rural Electrification Authority and Ministry of Energy and Petroleum (REA)'''</span> |
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| − | *Rural Electrification | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Rural Electrification</span> |
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| − | <br/>[[Kenya Energy Situation#toc|►Go to Top]] | + | <br/><span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya Energy Situation#toc|►Go to Top]]</span> |
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| − | == Institutions Dealing with Rural Electrification and Solar == | + | == <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Institutions Dealing with Rural Electrification and Solar</span> == |
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| − | '''Kenya Renewable Energy Association (<span data-scayt_word="KEREA" data-scaytid="87"><g class="gr_ gr_47 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="47" data-gr-id="47">KEREA</g></span>)''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''Kenya Renewable Energy Association <span data-scayt_word="KEREA" data-scaytid="87">(KEREA</span>)''' </span> |
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| − | *This is a membership association founded to lobby and advocate for issues relevant to the renewable energy sector in Kenya. | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">This is a membership association founded to lobby and advocate for issues relevant to the renewable energy sector in Kenya.</span> |
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| − | '''Kenya Solar Technician Association (<span data-scayt_word="KETSA" data-scaytid="92">KESTA</span>)''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''Kenya Solar Technician Association (<span data-scayt_word="KETSA" data-scaytid="92">KESTA</span>)'''</span> |
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| − | *Another membership association that was founded in 2006 to <span data-scayt_word="galvanise" data-scaytid="89"><g class="gr_ gr_51 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace" id="51" data-gr-id="51">galvanise</g></span> the activities of freelance solar technicians and <g class="gr_ gr_50 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace" id="50" data-gr-id="50">advocate</g> for effective solar business especially at grass root level (rural areas). | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Another membership association that was founded in 2006 to <span data-scayt_word="galvanise" data-scaytid="89">galvanise</span> the activities of freelance solar technicians and advocate for effective solar business especially at grass root level (rural areas). </span> |
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| − | '''The Task Force on Accelerated Green Energy Development at the Prime Minister’s (PM) office''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''The Task Force on Accelerated Green Energy Development at the Prime Minister’s (PM) office'''</span> |
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| − | *A committee that was founded to <g class="gr_ gr_45 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="45" data-gr-id="45">fast track</g> development of green energy for <g class="gr_ gr_54 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep" id="54" data-gr-id="54">achievement</g> of national development goals, particularly realization of Kenya Vision 2030. This is mainly through assisting with <g class="gr_ gr_55 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins doubleReplace replaceWithoutSep" id="55" data-gr-id="55">mobilization</g> of technical and financial resources for the implementation of green energy programs and projects, including <g class="gr_ gr_46 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="46" data-gr-id="46">public private</g> partnerships and favorable carbon finance projects. | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">A committee that was founded to fast track development of green energy for achievement of national development goals, particularly realization of Kenya Vision 2030. This is mainly through assisting with mobilization of technical and financial resources for the implementation of green energy programs and projects, including public private partnerships and favorable carbon finance projects. </span> |
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| − | <br/>[[Kenya Energy Situation#toc|►Go to Top]] | + | <br/><span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya Energy Situation#toc|►Go to Top]]</span> |
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| − | == Activities of Donors: == | + | == <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Activities of Donors:</span> == |
| − | <span style="font-size: 13.6px; background-color: rgb(255, 255, 255);">One of the leading agencies supporting developments in the energy sector in Kenya is the U.S. Government's Power Africa project. Launch in </span>2013, Power Africa brings together technical and legal experts, the private sector, and governments from around the world to work in partnership to increase the number of Africans with access to power. | + | |
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| − | Power Africa’s goal is to add more than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity and 60 million new home and business connections in Sub-Saharan Africa.
| + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)"><span style="font-size: 13.6px; background-color: rgb(255, 255, 255)">One of the leading agencies supporting developments in the energy sector in Kenya is the U.S. Government's Power Africa project. Launch in </span>2013, Power Africa brings together technical and legal experts, the private sector, and governments from around the world to work in partnership to increase the number of Africans with access to power.</span> |
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| − | <span style="font-size: 13.6px; background-color: rgb(255, 255, 255);"></span> | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Power Africa’s goal is to add more than 30,000 megawatts (MW) of cleaner, more efficient electricity generation capacity and 60 million new home and business connections in Sub-Saharan Africa.</span> |
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| − | <span style="font-size: 13.6px; background-color: rgb(255, 255, 255);"></span><u>'''POWER AFRICA’S ENGAGEMENT IN KENYA'''</u> | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)"><span style="font-size: 13.6px; background-color: rgb(255, 255, 255)"></span></span> |
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| − | '''MW GENERATION''' | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)"><span style="font-size: 13.6px; background-color: rgb(255, 255, 255)"></span><u>'''POWER AFRICA’S ENGAGEMENT IN KENYA'''</u></span> |
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| − | *Power Africa supports power sector development in Kenya through a combination of financing, transaction and technical assistance, advocacy, and investment promotion. Power Africa helps advance power projects in the pipeline by raising debt and equity financing, assisting in PPA and Government Letter of Support <g class="gr_ gr_40 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Punctuation only-del replaceWithoutSep" id="40" data-gr-id="40">negotiations,</g> and providing technical and financial advisory services. Its work to mobilize over $1 billion in private investment addresses a significant hurdle for many projects and will accelerate power projects across technologies. Through the U.S. Trade and Development Agency, Power Africa has provided grants and assistance worth $6.5 million to support the development of eight new energy projects totaling 281 MW in Kenya.
| + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''MW GENERATION'''</span> |
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| − | '''CONNECTIONS'''
| + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Power Africa supports power sector development in Kenya through a combination of financing, transaction and technical assistance, advocacy, and investment promotion. Power Africa helps advance power projects in the pipeline by raising debt and equity financing, assisting in PPA and Government Letter of Support negotiations, and providing technical and financial advisory services. Its work to mobilize over $1 billion in private investment addresses a significant hurdle for many projects and will accelerate power projects across technologies. Through the U.S. Trade and Development Agency, Power Africa has provided grants and assistance worth $6.5 million to support the development of eight new energy projects totaling 281 MW in Kenya. </span> |
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| − | *The Grid Management Support Program will enable Kenya to address key challenges of integrating intermittent renewable energy into the national grid. Power Africa has used innovative financial solutions, such as the USAID Development Credit Authority, to Support grid connections and small on-grid power generation projects. In the off-grid sector, dedicated Power Africa advisors provide targeted technical assistance to over 40 small-scale renewable energy providers, assisting them with market Development and funding, among other priorities. Additionally, in partnership with General Electric, the African Development Bank, and others, Power Africa already awarded eleven grants of $100,000 each to innovative renewable energy projects in rural Kenyan communities as part of the Power Africa Off-Grid Energy Challenge.
| + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''CONNECTIONS'''</span> |
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| − | '''SUCCESS STORY'''
| + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">The Grid Management Support Program will enable Kenya to address key challenges of integrating intermittent renewable energy into the national grid. Power Africa has used innovative financial solutions, such as the USAID Development Credit Authority, to Support grid connections and small on-grid power generation projects. In the off-grid sector, dedicated Power Africa advisors provide targeted technical assistance to over 40 small-scale renewable energy providers, assisting them with market Development and funding, among other priorities. Additionally, in partnership with General Electric, the African Development Bank, and others, Power Africa already awarded eleven grants of $100,000 each to innovative renewable energy projects in rural Kenyan communities as part of the Power Africa Off-Grid Energy Challenge.</span> |
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| − | *In partnership with the Kenyan Ministry of Energy and Petroleum, Power Africa supported the formation of a high-level Financing Steering Committee with Kenya’s energy sector parastatal companies and leading private sector partners to explore ways to overcome the estimated $14-18 billion funding gap necessary to achieve the government’s generation, transmission, distribution, and off-grid electrification targets. The Committee provided a unique forum for public-private dialogue and strategic problem solving to overcome sector hurdles. Its policy recommendations have become a roadmap for Power Africa programming and the entire power sector in Kenya. | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">'''SUCCESS STORY'''</span> |
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| | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">In partnership with the Kenyan Ministry of Energy and Petroleum, Power Africa supported the formation of a high-level Financing Steering Committee with Kenya’s energy sector parastatal companies and leading private sector partners to explore ways to overcome the estimated $14-18 billion funding gap necessary to achieve the government’s generation, transmission, distribution, and off-grid electrification targets. The Committee provided a unique forum for public-private dialogue and strategic problem solving to overcome sector hurdles. Its policy recommendations have become a roadmap for Power Africa programming and the entire power sector in Kenya.</span> |
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| − | <span data-scayt_word="Agence" data-scaytid="79">Another leading agency supporting the development of the energy sector in Kenya is the French Agency for Development - '''Agence'''</span>'''<span data-scayt_word="française" data-scaytid="80">française</span> de <span data-scayt_word="développement" data-scaytid="81">développement</span> (<span data-scayt_word="AFD" data-scaytid="82">AFD</span>)'''. They support several initiatives including: | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)"><span data-scayt_word="Agence" data-scaytid="79">Another leading agency supporting the development of the energy sector in Kenya is the French Agency for Development - '''Agence'''</span>'''<span data-scayt_word="française" data-scaytid="80">française</span> de <span data-scayt_word="développement" data-scaytid="81">développement</span> (<span data-scayt_word="AFD" data-scaytid="82">AFD</span>)'''. They support several initiatives including:</span> |
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| − | *Conversion of diesel generators into hybrid generators (wind, solar, biomass,) and construction of new generators and associated mini-grids in rural areas. | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Conversion of diesel generators into hybrid generators (wind, solar, biomass,) and construction of new generators and associated mini-grids in rural areas.</span> |
| − | *Scaling up of a pilot revolving fund to enhance connectivity in Kenya, complemented by a <span data-scayt_word="CFL" data-scaytid="83">CFL</span> distribution component | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Scaling up of a pilot revolving fund to enhance connectivity in Kenya, complemented by a <span data-scayt_word="CFL" data-scaytid="83">CFL</span> distribution component</span> |
| − | *Support to the Geothermal development company and funding of a national master plan | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Support to the Geothermal development company and funding of a national master plan</span> |
| − | *Credit line to commercial banks to promote renewable energy and energy <span data-scayt_word="efficiecy" data-scaytid="84">efficiency</span> projects in the <span data-scayt_word="agri-business" data-scaytid="85">agri-business</span> and hostelry sectors | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Credit line to commercial banks to promote renewable energy and energy <span data-scayt_word="efficiecy" data-scaytid="84">efficiency</span> projects in the <span data-scayt_word="agri-business" data-scaytid="85">agri-business</span> and hostelry sectors</span> |
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| − | <br/>[[Kenya Energy Situation#toc|►Go to Top]] | + | <br/><span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya Energy Situation#toc|►Go to Top]]</span> |
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| − | = Further Information<br/> = | + | = <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">Further Information</span><br/> = |
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| − | *[http://www.erb.go.ke/energy.pdf The Energy Act 2006] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.erb.go.ke/energy.pdf The Energy Act 2006]</span> |
| − | *[http://www.enable.nu/publication/D_1_7_Kenya_Energy_Policy_Overview.pdf Kenya Energy Policy Overview] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.enable.nu/publication/D_1_7_Kenya_Energy_Policy_Overview.pdf Kenya Energy Policy Overview]</span> |
| − | *[http://bit.ly/1xGWBFu Kenya: Integrated assessment of the Energy Policy] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://bit.ly/1xGWBFu Kenya: Integrated assessment of the Energy Policy]</span> |
| − | *[[:File:Kenya country report.pdf|Kenya Country Report]] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[:File:Kenya country report.pdf|Kenya Country Report]]</span> |
| − | *[[Mobile Phone Market in Kenya|Mobile Phone Market in Kenya]] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Mobile Phone Market in Kenya|Mobile Phone Market in Kenya]]</span> |
| − | *[http://bit.ly/1B0tNxz Disseminating Wind pumps in Rural Kenya - Meeting Rural Water Needs using Locally Manufactured Wind pumps.] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://bit.ly/1B0tNxz Disseminating Wind pumps in Rural Kenya - Meeting Rural Water Needs using Locally Manufactured Wind pumps.]</span> |
| − | *[http://swera.unep.net/ SWERA (Solar and Wind Energy Resource Assessment) Programme] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://swera.unep.net/ SWERA (Solar and Wind Energy Resource Assessment) Programme]</span> |
| − | *[http://www.erc.go.ke/erc/LCPDP.pdf Least Cost Power Development Plan] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.erc.go.ke/erc/LCPDP.pdf Least Cost Power Development Plan]</span> |
| − | *[http://www.energy.go.ke/wp-content/uploads/2010/08/Updated SREP Draft Investment Plan-May 2011.pdf Renewables Investment Plan for Kenya] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.energy.go.ke/wp-content/uploads/2010/08/Updated SREP Draft Investment Plan-May 2011.pdf Renewables Investment Plan for Kenya]</span> |
| − | *[http://www.gdc.co.ke/index.php?option=com_content&view=article&id=191&Itemid=163 Geothermal Development Company of Kenya] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.gdc.co.ke/index.php?option=com_content&view=article&id=191&Itemid=163 Geothermal Development Company of Kenya]</span> |
| − | *[http://www.erc.go.ke/erc/fitpolicy.pdf Feed-in tarriffs for renewables in Kenya] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[http://www.erc.go.ke/erc/fitpolicy.pdf Feed-in tarriffs for renewables in Kenya]</span> |
| − | *[[Kenya - Information Sources|External information sources for Kenya]] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya - Information Sources|External information sources for Kenya]]</span> |
| − | *ProSolar handbooks: [[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|site selection]], [[Mini Grid Licensing|licensing]], [[Mini-Grid Sizing|system sizing]]. | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">ProSolar handbooks: [[:File:GIZ2014-en-where-shall-we-put-it-kenya.pdf|site selection]], [[Mini Grid Licensing|licensing]], [[Mini-Grid Sizing|system sizing]].</span> |
| − | *ProSolar 2016 factsheets: [[:File:2016_GIZ_ProSolar_brief_Leading_the_way_to_rural_electrification.pdf|ProSolar]] project, [[:File:Mini-Grids RBF Brochure.pdf|Mini-Grids Result Based Financing]] (RBF) project. | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">ProSolar 2016 factsheets: [[:File:2016 GIZ ProSolar brief Leading the way to rural electrification.pdf|ProSolar]] project, [[:File:Mini-Grids RBF Brochure.pdf|Mini-Grids Result Based Financing]] (RBF) project.</span> |
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| − | <br/>[[Kenya Energy Situation#toc|►Go to Top]]<br/> | + | <br/><span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya Energy Situation#toc|►Go to Top]]</span><br/> |
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| − | = References<br/> = | + | = <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">References</span><br/> = |
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| − | *[[Kenya - Information Sources|Sources page]] | + | *<span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya - Information Sources|Sources page]]</span> |
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| − | <references /> | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)"><references /></span> |
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| − | [[Kenya Energy Situation#toc|►Go to Top]]
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| − | [[Category:Africa]] | + | <span style="color: rgb(84, 84, 84); font-family: arial, sans-serif; font-size: small; background-color: rgb(255, 255, 255)">[[Kenya Energy Situation#toc|►Go to Top]]</span> |
The energy sector in Kenya is largely dominated by petroleum and electricity, with wood fuel providing the basic energy needs of the rural communities, urban poor, and the informal sector. An analysis of the national energy shows heavy dependency on wood fuel and other biomass that account for 68% of the total energy consumption (petroleum 22%, electricity 9%, others account for 1%). Electricity access in Kenya is low despite the government’s ambitious target to increase electricity connectivity from the current 15% to at least 65% by the year 2022.[1]
Kenya has an installed capacity of 2.3 GW. Whilst about 57% is hydro power, about 32% is thermal and the rest comprises geothermal and emergency thermal power. Solar PV and Wind power play a minor role contributing less than 1%. However, hydropower has ranged from 38-76% of the generation mix due to poor rainfall. Thermal energy sources have been used to make up for these shortfalls, varying between 16-33% of the mix[2]
Kenya’s current effective installed (grid connected) electricity capacity is 1,429 MW. Electricity supply is predominantly sourced from hydro and fossil fuel (thermal) sources. This generation energy mix comprises 52.1% from hydro, 32.5% from fossil fuels, 13.2% from geothermal, 1.8% from biogas cogeneration and 0.4% from wind, respectively. Current electricity demand is 1,600 MW and is projected to grow to 2,600-3600 MW by 2020.
As of 2007, the contribution of the energy sector to the overall tax revenue was about 20%, equivalent to 4% of GDP. The sector provides direct and indirect employment to an estimated 16,000 persons[3].
It costs approximately Ksh 35,000 (EUR 318.18) to connect to the national grid and about 0.1145 EUR equivalent per kWh of electricity service. These are relatively high costs that pose a major obstacle to the expansion of electricity connections to low-income households and small businesses, which can therefore benefit from decentralized alternative sources of energy, such as solar.
Due to increased poverty, there is a significant shift to non-traded traditional biomass fuels. The proportion of households consuming biomass has risen to 83% from 73% in 1980. As of 2007,Biomass Energy Resources in Kenya, i.e. firewood, charcoal and agricultural wastes contributed approx. up to 70% of Kenya’s final energy demand and provided for almost 90% of rural household energy needs, about one third in the form of charcoal and the rest from firewood.
Charcoal, firewood, paraffin, and LPG continue to be the main sources of cooking fuel. At the national level 68.8% of the households use firewood as the main cooking fuel. Almost 90% of the rural population is dependent on firewood for cooking and heating, whilst in urban areas approximately 10% of the population use firewood. Firewood is increasingly supplied from private smallholder lands and farm woodlots. Charcoal, on the other hand, is mainly an urban fuel, 82% of urban households depend on it as part of their energy mix, compared to 34% of households using charcoal in rural areas. It is estimated that Kenyans now consume 2.4 million tons of charcoal each year[2]. A national charcoal survey showed that in 2004/2005 about 200,000 producers produced 1.6 million tons of charcoal, but only 45% of them claimed to be actively involved in resource generation[4]. One set of biomass users includes educational institutions (primary and secondary schools, as well as colleges). Of Kenya’s 20,000 educational institutions, about 90% use wood fuel to prepare meals[5]. Due to rising petroleum prices, recently also the industry gained more interest in wood based fuels[4]
Charcoal is produced inefficiently using tradition earth kilns whose efficiency range between 10–13% yet higher recoveries of between 30-40% have been achieved using brick kilns. Biomass comes from various forest formations such as closed forest, woodlands,bushlands, wooded grasslands,farms with natural vegetation and mixtures of native and exotic trees, industrial and fuel wood plantations, and residues from agricultural crops and wood-based industries. However, although there are apparently large wood volumes available from the various vegetation types, not all of it is accessible for energy.Accessible wood depends on a number of factors such as legal issues, environmental issues, ownership, objectives of management, distance, and infrastructure [2]. Additionally, most of the population are engaged in production, transformation, transportation and sale of wood and charcoal, making it one of the most important sources of paid livelihood. As a result woody biomass is diminishing due to poor management and utilization in unsustainable ways. Government ministries are supporting in one way or the other the sustainable production of energy crops, trade of charcoal and the dissemination of improved cooking stoves.
Kenya has the potential for generation of electricity from biomass sources generated from agricultural wastes from the sugar cane (biogas), sisal, timber (sawdust) and meat industries[2]. The development of a bioenergy industry can improve energy security, reduce energy imports, and promote the agricultural and forestry sector by adding value to traditional crops. It further plays an important role in off-grid electrification of rural regions, can bring health benefits and reduce pressure on the environment. However, biomass feedstock can also endanger ecosystems and biodiversity, especially when being cultivated in monocultures. In plantations, large amounts of water are needed for irrigation and agrochemicals must often be added which can lead to water pollution. Therefore, it is essential to find a balance between opportunity maximization and risk minimization for which a well-defined regulatory framework is essential[6].
Despite the fact that traditional biomass dominates the energy landscape, little or no budget is provided for research, development and dissemination for heat and drought resistant crops, biofuels and modern biomass energy use. While some progress has been made in disseminating efficient wood and charcoal stoves, more needs to be done to building more diversity and strengthening the resilience of the energy system.
Although there are several thousand biodigesters installed in Kenya, most of them operate below capacity or are currently in disuse due to management, technical, socio-cultural or economic problems.
Biogas is widely used in institutions due to their high potential of waste utilization for biogas generation. Several pilot programms have been established.[7]
Hydropower is the single largest generation source for grid electricity in Kenya providing some 677 MW of the total installed grid capacity. As of 2007, a 60 MW hydro generation plant was being developed on the Sondu Miriu with a further 20 MW planned for 2008. With the exception of Turkwell Gorge (Rift Valley) and Sondu Miriu (Lake Victoria) some 470 MW or 70% of the total developed hydro capacity lies on the Tana River alone, a conspicuous over reliance.
Kenya has high insolation rates with an average of 5-7 peak sunshine hours (The equivalent number of hours per day when solar irradiance averages 1,000 W/m2), and receives an average daily insolation of 4-6kWh/m2. Only 10-14% of this energy can be converted into electricity due to the conversion efficiency of PV modules.
Stand-alone PV systems represent the least-cost option for electrifying homes in many rural areas, especially the sparsely populated arid and semi-arid lands. “Solar home systems” (SHSs) are practical for providing small amounts of electricity to households beyond distribution networks.The systems typically consist of a 10 – 50 Watt peak (Wp) PV module and a battery sometimes coupled with a charge controller, wiring, lights, and connections to small appliances (such as a radio, television, or mobile phones). Other PV applications include water pumping, telecommunications and cathodic protection for pipelines, power supply to off-grid non-commercial establishments and off-grid small commercial establishments.
Kenya has one of the most active commercial PV system market in the developing world, with an installed PV capacity in the range of 4 MW. An estimated 200,000 rural households in Kenya have solar home systems and annual PV sales in Kenya are between 25,000-30,000 PV modules. In 2002, total PV sales were estimated to have been 750 kWp and have grown by 170% in 8 yrs, even without government intervention or policies to promote the uptake of PV technology.
In comparison, the Kenya’s Rural Electrification Fund, which costs all electricity consumers 5% of the value of their monthly electricity consumption (currently an estimated 16 million US$ annually), is responsible for 70,000 connections. With access to loans and fee-for-service arrangements, estimates suggest that the SHS market could reach up to 50% or more of un-electrified rural homes.
Since 2006-2007, the Ministry of Energy has been actively promoting use of solar energy for off grid electrification. In particular, it has funded the solar for schools programme and is targeting to extend this to off grid clinics and dispensaries. Grid connected PV systems covering an area of 15-20 km2(3% of the Nairobi area) could provide 3801 GWh of electrical energy a year, equivalent to the total grid electricity sales for Kenya in 2002-2003. The costs, however, are prohibitive[2].There are about 4 million households in rural Kenya alone which present a vast potential for this virtually untapped technology. The off grid market is estimated to be over 40MW.
An estimated 200,000 rural households in Kenya have solar home systems. This success has been largely due to private sector activity. The high level of uptake has been through the sale of products that best fit the purchasing power of rural households, and by making these products available within the mobility range of potential customers, typically less than 40km from the customers home[8] .
In mature market areas, such as central and western Kenya, between 20 and 40% of households have systems. Most units are in the power range of 10 to 20 Wp. With prices being as low as US$50, the products have been affordable by medium class families without a need for subsidies and credit. However, financial assistance will be necessary for poorer families to be able to afford an SHS. Most of the SHS traders started selling these products in the 1990s.
As the Kenyan business culture is mainly based upon imitation, once a few shops had been convinced by the Nairobi based distributors, businessmen all over the country replicated their success by selling systems. The level of competition is high with over 800 rural outlets, and by shopping around even the least informed end-user will buy at a reasonable price. Information from friends and relatives is currently the main source that new customers turn to for advice on the best system to use, as the shopkeepers are rarely trusted. More needs to be done to both help customers understand the importance of purchasing quality systems and to help purchasers to identify them. The high level of sales demonstrates the effectiveness and efficiency that the private sector can bring to disseminating SHS – success that has yet to be matched by any utility or donor programme.
Currently (as of 2016), only about 50 percent of the Kenyan people have access to electricity. In remote areas electrification rates can be as low as 5 percent. Improving the access to modern energy services in rural areas remains a major development priority. In order to achieve this goal complementary solutions to grid extension, such as solar-hybrid mini-grids are necessary.
- The Talek Power mini-grid is a pilot project set up in Talek in close cooperation with the Narok County Government and the German Agro Action. The mini-grid consists of a 50 kW solar-hybrid generation power plant, combining PV modules, battery packs and a diesel generator. The pilot tests the social and economic viability of mini-grids and serves as a learning scheme for stakeholders.
- An advanced training course has been developed for solar technicians, qualifying them to install hybrid solar systems in villages. The technicians receive their hands-on training at a 10kW solar-hybrid demonstration system, which was installed at Strathmore University.
- ProSolar assisted Marsabit and Turkana Counties in the development of energy sector plans, which serve as a benchmark in strategizing, mapping and monitoring the distribution and use of energy within the county. Furthermore, the MoEP has been supported in developing a coherent framework for county energy sector plans.
- In a competitive tendering process private developers have been selected to receive financing through the Result-based-funding (RBF) component for developing three mini-grids in Turkana County.
The Equatorial areas are assumed to have poor to medium wind resource. This could be a general pattern for Kenya. However, some topography specifics (channeling and hill effects due to the presence of the Rift Valley and various mountain and highland areas) have endowed Kenya with some excellent wind regime areas. The North West of the country (Marsabit and Turkana districts) and the edges of the Rift Valley are the two large windiest areas (average wind speeds above 9 m/s at 50 m high). The coast is also a place of interest though the wind resource is expected to be lower (about 5-7 m/s at 50 m high). Many other local mountain spots offer good wind conditions. Due to monsoon influence, some seasonal variations on wind resource are expected (low winds between May and August in Southern Kenya).
It is expected that about 25% of the country is compatible with current wind technology. The main issue is the limited knowledge of the Kenyan wind resource. The meteorological station’s data are quite unreliable while modern measurement campaigns have started recently for investigating wind park locations. Kenya has 35 metrological stations that are spread all over the country. Information gathered is not adequate to give detailed resolutions due to sparse station network.
There is significant potential to use wind energy for grid connected wind farms, isolated grids (through wind-diesel hybrid systems) and off-grid community electricity and water pumping. Kenya has recently experienced a surge in wind energy installations for electricity generation. The largest windfarm (300MW) in Africa is being constructed in Turkana area of North Western Kenya. The Ngong hills area of close to Nairobi also has 5.1 MW installed and several MW planned by private investors. An average of 80-100 small wind turbines (400 W) have been installed to date, often as part of a Photovoltaic (PV)-Wind hybrid system with battery storage.
Wind pumps are more common than wind turbines, 2 local companies manufacture and install wind pumps. As of 2007, the number of installations was in the range of 300-350[2].
Kenya is endowed with geothermal resources mainly located in the Rift Valley. It is estimated conservatively that the Kenya Rift has a potential of greater than 2000 MW of geothermal Power. Geothermal utilization first started by drilling two wells in 1956 in Olkaria I and was followed by increased interest in the 1970s. Initial production started in 1981 when the first plant of 15MW was commissioned in Olkaria I .Currently 45MW is generated by Olkaria I geothermal power station, 70 MW by Olkaria II (both operated by KenGen) and an IPP is producing 12Mwe at Olkaria III. KenGen and the IPP produce a total of 129 MW of geothermal energy and this is expected to increase to 576MWe within the next 20 years. The national geothermal potential is estimated at between 7,000 and 10,000 MW.
In Kenya's Least Cost Power Development Plan, geothermal power has been identified as a cost effective power option and the Geothermal Development Company (GDC) was set up to fast track harnessing Kenya's vast resources. Explorations for geothermal energy in the high potential areas of the Kenyan Rift are now ongoing. KenGen, together with the Ministry of Energy conducted surface scientific studies in Suswa, Longonot, Eburru, Menengai, Arus and Bogoria, Lake Baringo area, Korosi and Chepchuk, and Paka. Preliminary results indicate significant potential of geothermal power in these prospects. Six exploratory wells were drilled at Eburru. Recent studies show that the Eburru area can sustain 25 MW of electric power. More exploration work is expected to begin in Silali in September 2007. Other high potential areas earmarked for further exploration work in the north rift include Emurauangogolak, Barrier volcanoes, Namarunu volcanic field, and Badlands Volcanic field and Lake Magadi geothermal area in the South, among others. The GDC is now responsible for their development.
Petroleum is Kenya’s major source of commercial energy and has, over the years, accounted for about 80% of the country’s commercial energy requirements. In 2006, 4.4 million cubic meters in petroleum products were sold in Kenya. Of this 420,000 m3 was kerosene and 68,000 m3 was LPG. Total petroleum consumption in Kenya has grown from 2.6 million cubic meters in 2003 to 3.73 million cubic meters in 2006. The consumption maintains an upward trend. As of 2009, demand for petroleum products was 3,656 thousand tonnes. As of 2007, Kenya had one refinery, the Mombassa refinery, with a nameplate capacity of 90,000 barrels per day. Since its commission the refinery has not operated at full capacity.
As of 2007 there were 4 prospective petroleum basins in Kenya, about 30 exploration wells had been drilled and although none has encountered a commercial discovery, a number of drill stem tests have recovered or tested gas. In 2012 significant oil reserves were discovered in North Western Kenya. Studies are still being carried out to establish the economic feasibility.
Consumption of LPG has increased by about 59% between 2003-2008 from 40,000 to 80,000 metric tons/year. The Kenya Petroleum Refinery makes about 30, 000 metric tons of LPG and to balance growing demand reliance on imported LPG has increased. However, there are plans underway to upgrade the refinery to make 115,000 metric tons of LPG.
The Ministry of Energy has identified two areas with possible commercially exploitable quantities of coal. These are the Mui basin of Kitui and Mwingi Districts and Taru basin of Kwale and Kilifi Districts. As of 2007, 10 wells have been drilled in Mui basin with encouraging results indicating possible existence of commercial quantities of coal.
Only 6% of Kenya's land is forest. Large areas of these forest resources are not accessible due to legal or environmental restrictions, ownership, management issues, distances or infrastructure.[4] Fuelwood demand in the country is 35 million tons per year while its supply is 15 million tons per year, representing a deficit of 20 million tons[2]. The massive deficit in fuelwood supply has led to high rates of deforestation in both exotic and indigenous vegetation resulting to adverse environmental effects such as desertification, land degradation, droughts and famine among others. It is in an effort to reduce these problems that PSDA through collaboration with other Development Partners initiated “Promotion of Improved Energy Stoves” in January 2006. Nevertheless, a high population share still uses firewood for cooking – more than 80% of the population use traditional three stones technology for the same.
In the first phase of the EnDev programme, GTZ disseminated a significant amount of improved cook stoves (ICS). In addition GTZ promoted the uptake of ICSs by institutions. However, many people without improved stoves still do not know where to get them although they express desire to acquire them. Current improved stove production centres do not meet the demands of the new project areas, especially in the arid and semi-arid regions which need them more than any other regions in the country. This has largely contributed to unsustainable harvesting of biomass with negative impacts on the environment and poor health among users due to excessive inhalation of noxious gases. Up-scaling of improved cook stoves is therefore necessary.
The energy policy for Kenya was adopted in 2004, but recently high oil prices and need for energy security have become more urgent drivers for alternative energy. A new energy policy was drafted in 2015, but awaits adoption by Parliament. For Kenya, high oil prices and the need to increase overall energy per capita supply are strong motivators for development of alternative forms of energy. Transportation fuels remain the most emotive of all energy segments, especially when prices are going up, as this is where lifestyles and livelihoods are visibly impacted. Alternative energy is not only focusing on economics alone, but also looks at security of supply and their social economic benefits to the country.
The broad objective of the new Energy Policy is to ensure the provision of adequate, quality, cost-effective, affordable supply of energy while ascertaining environmental conservation[3].
Kenya does not provide incentives or subsidies for household solar PV systems. Although some strides have been made to improve energy efficiency and renewable energy in Kenya by the government, some planned reforms in the Energy Act are yet to be effected. These include:
In addition, energy planning activities should integrate socio-economic, cultural and environmental aspects, which is only possible through strong links between policy makers, implementers and researchers - research findings are infrequently incorporated during the decision making process of policy development.
Although economic survey findings, and findings from donor funded projects or studies have been used as references in policy development, whether or not these are sufficient is questionable. Little attention is paid to University based research findings. These studies are often the source of economic surveydata, but receive little or no recognition. Policy makers need to actively engage researchers and there is great need to move towards evidence based policy and decision-making - policymaking is not an experimental process[3].
The New Energy Policy is as a result of the Government recognizing that the energy sector plays a key role in the achievement of GoK’s socio-economic strategies. It lays the policy framework for the provision of cost-effective, affordable and adequate quality energy services on a sustainable basis.
The Energy Act 2006 is a consolidation of the Electric Power Act and the Petroleum Act 2000, and has a section on petroleum and a section on electricity. The energy policy already recognizes the biomass sector and how biomass regulation should be done in terms of pricing and sets a good basis for drafting the biomass plan. It also recognizes the importance of renewable energy and energy efficiency[3].
Kenya introduced a VAT on solar products totaling 16% in 2013, but the government has now decided that it will dismiss this tax in a move to cut cost of renewable energy products.
