Post on 16-Apr-2020
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PRESENTATION TO THE INTERNATIONAL CONFERENCE ON PLANNING & THE
BIG FOUR.
OVERVIEW OF THE ENERGY SECTOR IN KENYA AS AN ENABLER TO THE BIG
FOUR AGENDA
Mr. Dickson Murira
Central Planning and Project Monitoring Unit ,
Ministry of Energy
MISSION & VISION OF MOE
… to facilitate provision of :
• clean,
• sustainable,
• affordable,
• competitive and
• secure energy
for national development while protecting the environment …
Mission
… affordable, competitive
quality energy for all
Kenyans …
Vision
KENYA ENERGY SECTOR
Electricity
Ministry of
Energy
(responsible for
policy matters
on energy)
KenGen (74%
GoK) - (1639MW)
IPPs (572MW)
Upcoming IPPs
Generation
Transmission
(KETRACO)
Energy
Regulatory
Commission
(ERC)
(responsible
for regulating
the energy
sector)
REA
New Energy Bills
being enacted to
align the sector to
the New
Constitution, Vision
2030 and Global
Trends…
Distribution Energy Tribunal KPLC
GDC
KNEB
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CORE OBJECTIVES OF KENYA’S STRATEGIC ENERGY PLAN
Key
objectives:
Increase electricity generation
capacity from cheaper,
sustainable and reliable energy
sources –
lower cost of power
( To cost about 9 US cents for
industries and 10 US cents for
domestic tariff by 2020
Increase electricity access
country wide to increase the
uptake of power and grid / off-
grid network extension –
socio-economic growth,
increased and devolved
industries
To achieve universal access
by 2020
Expand and upgrade the
transmission and distribution
network infrastructure –
reduce power loss, lower
cost of power, increased
revenue generation, stable
power network
PILLARS OF THE 5,000+ MW PROJECT
• ADEQUACY roadmap to raise generation capacity from 2323 MW in 2015 to over 6,700 MW by 2020
•RELIABILITY enhanced through diversified energy mix
• REDUCE COST by increasing generation from cheaper energy sources and reduced power losses
GENERATION CAPACITY
• The installed generation capacity stands at 2,340 MW while the total effective capacity is 2,265 MW.
• The effective interconnected capacity is 2,243 MW.
Mar 2013 February 2018
Installed MW Effective MW Installed MW Effective MW2 % contribution
(effective)
Hydro 816.2 766.9 826.23 805.02 35.55%
Geothermal 251.4 244.9 652.00 644.00 28.44%
Thermal (MSD) 466 447.5 716.32 690.12 30.48%
Tempoary Thermal -grid 120.0 120.0 - - -
Thermal (GT) 60.0 27.0 60.00 55.00 2.43%
Wind 5.1 5.1 25.50 25.50 1.13%
Biomass 26 22 28.00 23.50 1.04%
Interconnected System 1,745 1,633 2,308 2,243 99.06%
Off grid thermal 22.1 18.7 30.61 20.69 0.91%
Off grid wind 0.55 0.20 0.55 0.01 0.00%
Off grid solar 0.22 0.50 0.69 0.62 0.03%
Imports 0.00 0.00 0 0 0.00%
Total Capacity MW 1,768 1,652 2,3401 2,264.52 100.00%
1. Includes 7.65MW of new capacity in off-grid stations commissioned since March 2013 and excludes off-grid capacities
decommissioned following grid extension to Mpeketoni, Lamu, Garissa and Hola.
2. When capacity from all existing plants is available.
5000+MW CAPACITY ADDITION PROGRAMME
• Since March 2013, a total of 685 MW of new generation capacity has been commissioned bringing the installed capacity to 2,340 MW.
• This includes 7.65MW of new off-grid capacity. Project Type MW Term(Years) Commissioning Date
1 Thika Power MSD 87 20 Mar-2014
2 OrPower4 plant III Geothermal 16 25 Feb-2014
3 Olkaria IV Geothermal 140 25 Aug-2014
4 Olkaria I additional units Geothermal 140 25 Jan-2015
5 Gikira Small Hydro Hydro 0.5 20 May-2014
6 Gulf Power MSD 80 20 Nov-2014
7 Ngong I Phase 2 and Ngong II Wind Wind 20.4 20 Jan-2015
8 KenGen Wellheads Geothermal 75.6 20 Jan-2014 – November 2016
9 Kindaruma optimization Hydro 4 20 Jun-2013
10 Triumph Power MSD 77 20 Jul-2015
Triumph Power (steam unit) MSD 6 20 Feb-2016
11 Orpower IV Geothermal 29 25 Jan-2016
12 Biojoule Kenya Limited Biogas 2 20 Jan-2016
13 Regen-Terem (GenPro) Hydro 5 20 March- 2017
14 Chania Power Company(KTDA) Hydro 0.50 20 Undergoing commissioning tests
15 Gura (KTDA) Hydro 2 20 Undergoing commissioning tests
Total MW added since March 2013 685
• Committed generation projects amounting to 6016.43 MW capacity are at various stages of development.
• These include KenGen’s 158 MW Olkaria V geothermal and 400 MW of new capacity anticipated from Ethiopia in the medium term after completion of the 500 kV HVDC Ethiopia-Kenya transmission line expected in 2018.
5000+MW CAPACITY ADDITION PROGRAMME......( CONT)
Project / PPA Status Before March 2013 Mar. 2013 – Feb. 2018
No. Capacity (MW)
No. Capacity (MW)
Commissioned & operational Plants 48 1,768 68 2,340
PPAs commissioned 48 1,768 15 685
PPAs negotiated and approved by ERC-Effective - - 20 2144.3
PPAs negotiated and approved by ERC-Not
effective - - 12 326.04
PPAs negotiated awaiting ERC approval - - 13 358.51
PPAs under negotiations - - 19 595.65
Approved projects awaiting PPA negotiations - - 13 145.3
Approved Projects-Sent to ERC for inclusion in the
LCPDP - - 9 300
EOI approved- feasibility study ongoing - - 138 2,147
Projects under procurement yet to start (Coal and
Gas) - - 4 1,830
Feed In Tariff Projects • Out of the above, a total of 220 projects are being developed under
the FiT , and are at various stages of implementation and working towards availing 3,764 MW of new generation capacity.
Projects Wind Biomass Biogas Co-gen Small
Hydro
Solar
PV Geothermal
TOTAL
(No.)
Plants in Operation 0 0 1 0 4 0 0 5
Projects with Signed PPA's 3 2 0 1 9 8 0 23
Projects with Initialled PPA's 3 0 2 0 3 3 0 11
Projects with Finalized PPA
Negotiations Awaiting Board
Approval
0 0 0 0 0 3 0 3
Projects with PPA's under
Negotiations 1 2 0 0 6 7 0 16
Approved Projects with PPA
Negotiations Yet to Start 2 0 1 1 7 4 0 15
Projects with Feasibility Studies
approved and sent to ERC-
LCPDP
1 0 0 0 0 8 0 9
Projects in Feasibility Study
Stage 8 13 2 2 52 60 1 138
Total no. of Approved
Projects 18 17 6 4 81 93 1 220
Capacity (MW) 737 208 28 60 493 2,222 15 3,764
LOAD PROFILE Trend of Peak Demand
Current Peak demand is 1,770MW recorded on 17th January, 2018,
against Installed capacity of 2,340MW
1,649.9 1,647.9 1,649.1
1,656.0 1,665.3 1,662.5
1,710.3 1,704.9
1,727.0
1,753.7
1,769.7 1,767.6
1,580.0
1,600.0
1,620.0
1,640.0
1,660.0
1,680.0
1,700.0
1,720.0
1,740.0
1,760.0
1,780.0
Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18
Peak Demand - MW
Peak Demand(MW)
ELECTRICITY TARIFF
• Fuel Cost Charge (FCC) reduced from Shs.7.22/kWh in August 2014 to Shs.2.31/kWh applied from January to October 2016.
• FCC increased to Shs.2.34/kWh in November 2016 and Shs.2.85/kWh in December 2016 due to increased thermal generation following reduced hydropower output.
• The FCC retained at Sh.2.85/kWh from January to August 2017 but increased to Sh.3.35/kWh in September 2017 due to increased thermal generation following reduced hydropower output.
• The FCC retained at Sh.3.35/kWh in October 2017 and went up to Sh.4.35/kWh in November and December.
• FCC reduced to Shs.4.30/kWh in January 2018, but increased to Shs 4.51/kWh in February due to the persistent low hydrology and went upto Shs 5.35/kWh in March 2018.
722
571
231
311
251 231
285
435
535
0
100
200
300
400
500
600
700
800
Jul/
14
Sep
/14
No
v/14
Jan
/15
Mar
/15
May
/15
Jul/
15
Sep
/15
No
v/15
Jan
/16
Mar
/16
May
/16
Jul/
16
Sep
/16
No
v/16
Jan
/17
Mar
/17
May
/17
Jul/
17
Sep
/17
No
v/17
Jan
/18
Mar
/18
FCC
C
ents
/Kw
h
Mode of Participation
Through competitive PPP arrangements-
Advertisements normally in press and in
websites of Ministry and Agencies. Competitive Bidding
1
Feed-In-Tariffs
2 Renewable Energy Projects done under
Feed-in-Tariff Policy- soon transiting to
Energy Auctions framework, other than for
very small sized projects
PARTICIPATION
PPP initiated Proposals
for concessions
3
Concessional projects e.g. geothermal
FISCAL AND OTHER INCENTIVES
• Duty on power generation equipments waived
• Standard Letter of Support prepared from the government
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Electricity Access Growth: Customer Numbers
2013: 2.33 m 31%
2014: 2.77 m 35%
2016: 4.85 m 58%
2017 70% Universal Access
2020
2015: 3.61 m 45%
Our Intention is to Deliver Universal Access to Energy in Kenya by 2020
Year Population
size “Million”
2013 41.8
2014 43.0
2015 44.2
2016 45.7
2017 46.3
2020 52.0
Average household size is
taken as 5.5
Current connected: 6.5
million, > 72%
ELECTRICITY ACCESS STRATEGIES
Last Mile Connectivity:
Phase 1- Those near transformers
Phase 2 – Increasing the transformers 10
transformers per constituency
Phase 3 – Reaching off grid areas - KOSAP
Off-grid Solutions:
- Mini-grids- with hybrid solar/wind - KOSAP
- Stand Alone Solar Systems for Public
Institutions - KOSAP
- Solar Home Systems -KOSAP
Global Partnership Output Based Aid (GPOBA)
– Targeting highly populated settlements e.g
Kibera 1.9 Million Kenyans benefited across all
47 counties.
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LAST MILE CONNECTIVITY PROJECT (LMCP)
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• The Last Mile Connectivity Project (LMCP) is a Government of Kenya
Project for universal electricity access, being implemented by KPLC.
• It aims to stimulate economic growth in line with vision 2030 strategic plan.
• Implementation commenced in 2016 and is expected to be completed in
2021.
• It will improve access rate from about 55% in 2016 to about 84% through
connection of about 1.2million new customers to electricity supply.
• Universal access to be achieved in collaboration with off-grid connectivity
strategies eg KOSAP
• Benefiting customers will pay Ksh.15,000/= and may apply for a loan with 3
years repayment period alongside monthly bills (I.E. no compulsory up-front
payment).
Last Mile Connectivity
• Estimated to cost US$ 1 billion
• Development partners have so far committed:
– AfDB Phase I USD 150 million
– AfDB Phase II USD 150 million
– World Bank USD 150 million
– AFD/EU Euro 120 million
– EIB Euro 60 million
• Reaching out to other Development Partners-DANIDA, JICA, EIB, KfW
15/10/2018 17
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Phase 1 : African Development Bank (AfDB I) Funding
• Covering 47 Counties, this phase targets to maximize 5,320 transformers thereby benefiting
approximately 314,000 customers .
• Project is in progress and 98,056 customers have been connected so far. Expected completion date
– Nov 2018.
Phase 2 : African Development Bank (AfDB II) Funding
• Covering 47 Counties, this phase targets to maximize 5,320 transformers and connect
approximately 314,000 customers .
• Status: Contractors mobilized and design work started. Expected completion date – September
2019.
Phase 3 : World Bank /IDA Funding
• Covering 47 Counties, this phase targets to maximize 3,200 transformers and establish 1000 new
transformers with full maximization. Benefiting approximately 312,500 customers .
• Status: Contractors mobilized and design work completed. Expected completion date – August
2019.
Phase 4 : AFD/EU & EIB Funding
• Covering 32 Counties (based on counties where AFD phases 1 and 2 projects were implemented
i.e.. to maximize previous distribution projects by AFD)
• This phase targets to maximize 4,591 transformers and establish 353 new transformers with full
maximization. Benefiting approximately 296,000 customers .
• Expected to be tendered in April 2018 and completed in 2021.
Last Mile Connectivity Scope
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Mar 2013
TRANSMISSION & DISTRIBUTION INFRASTRUCTURE
Mar 2016
Kenya-Uganda-Rwanda; Ethiopia-Kenya; Kenya-Tanzania-
Zambia
Increase in Km of transmission lines in the country:
Cumulative growth Km
• Mar 2013 3,621km
• Mar 2016 4,221km (+600Km)
• Aug 2017 6,379km (+2158 km)
• Dec 2017 7,831km (+1452 km) (Total 4210 Km added)
Regional Transmission Lines:
Aug 2017
Dec 2017
KETRACO is working on developing a concessioning framework to enable private sector to participate in transmission development through PPP
REGIONAL INTERCONNECTION
500KV HVDC
Ethiopia-Kenya
Contractors
Mobilised
400KV Mombasa-
Nairobi
(93%complete)
400KV Lessos-
Tororo
(Completion Dec-
2016)
400KV Kenya-
Tanzania
(Procurement of
Contract ongoing)
400KV Suswa-
Isinya (83%
complete)
PUBLIC/STREET LIGHTING PROJECT AS AT 28-02-2018
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• Since its inception on 6th January 2016, G.O.K has disbursed to KPLC Ksh 11,623 million. A
total of 100,976 lanterns had been installed as at end of February 2018 compared to 98,614 in
January 2018.
County Budget (Ksh M) Funded (Ksh M) (February 2018)
Total lanterns Installed
(January 2018)
Total lanterns Installed
(February 2018)
1 Nairobi 5,810 5166.7 28,610 29,647
2 Nyeri 100 192.1 1,560 1,560
3 Mombasa 1,200 565.3 11,092 11,092
4 Kisumu 482 459.8 4,880 4,880
5 Nandi 69 160.5 1,310 1,579
6 Nakuru 271 385.1 2,110 2,288
7 Uasin Gishu 374 342.4 5,931 6,093
8 Garissa 81 152.2 1,064 1,064
9 Kiambu 117 523.4 3,774 3,963
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OFF-GRID Existing and Committed Transmission Network
OFF-GRID • Currently there are 21 public operational mini grids. Another
seven under development.
• All these are diesel based but nine have been retrofitted with
Renewable Energy.
• REA developing 25 solar mini-grids of about 60kW each
• To do more, with funds from GoK, AFD, World Bank,
Nordic Development Fund(NDF), DFID, KfW, GIZ and
other Development partners.
• Study on National Electrification Strategy and Geospatial
mapping finalized- Informs on areas and strategies for.
electrification by grid, mini-grid and other distributed energy
• 150m $ World Bank Facility commenced- KOSAP
POSSIBLE AREAS OF COLLABORATION
The following are the possible areas of
collaboration with the Other States and Non-State
Actors on energy
1) Helping in accessing way leave for projects.
2) Help in dealing with excessive host
community expectation during project
implementation.
3) Budgetary support – annual budget cycle.
4) Energy bill legislation process.
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CONCLUSION
• Favourable policy and regulatory frameworks
for energy provision.
• GoK is committed to increasing access to
modern energy, and will use Renewable
Energy solutions as much as possible.
• Development partners and the Private Sector
are key partners in energy provision, and as
such are Encouraged and Facilitated to
participate in energy sector in Kenya.
THANK YOU …