Kenya Power UPDEA me..

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3/1/2012 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 - Total Number of Customers Projected 2 000 000 1 720 868 3 000 000 In order to address critical electricity supply quality service challenges facing the company the following new projects are being implemented in the period 2010/11 to 2015/16: Project Objective Status 1. Distribution Master Plan Plan for comprehensive improvement Tendered to the entire distribution network 2. Under grounding of electricity To reduce electricity line break downs In progress lines in urban centres as well as to enhance public safety 3. Automation Extension of new technologies such as Pilot projects in smart grid, so as to improve Nairobi and performance of the electricity network Mombasa in progress 4. Auto changeovers Installation of more efficient load switching equipment In progress 5. Dry Type Transformers and Intruder Alarms 6. Joint Venture Transformer Factory Distribution Strategic Initiatives Change from oil type to dry type transformers that are less prone to vandalism Initiate manufacturing of transformers locally in a joint venture arrangement. Alarms being installed Tendered 13 14 Project Objective Status 7. Reactive Power Compensation 8.Aerial Bundled Conductors To improve voltages and harmonics through installation of capacitors and other equipment. Use of Aerial Bundled Conductors in urban areas or where there is heavy vegetation, as they require much less maintenance work In progress Tendered and expected to cost about Shs 3 billion 9. Concrete Poles Increased use of concrete poles in 26,300 concrete poles received power line construction leading to from the supplier to date out of fewer faults and less maintenance which 16,104 have been used 10. Change to Smart Grid System Distribution Strategic Initiatives contd. To realize a grid which has communication linkages between customers and system operators. To improve service delivery, efficiency and effectiveness in operations. Will facilitate leveraging of assets. Prepaid metering being done with adaptable meters, fibre optic installation being done in some parts of the system 15 Customer Service Strategic Initiatives Effectively collect revenue while providing efficient and high quality customer handling services. KPLC has developed a core competence of consistently achieving over 98% revenue collection as percent of billing Action Time Frame i. Automatic Meter Reading (AMR) project Pilot 2008/9 Roll-out 2009/10 to 2014/15 ii. Prepaid Meters Pilot Rollout project to retrofit Pilot 2009/10 250,000 per year small to medium customers. Install 200,000 meters per year for new Roll-out 2010/11 to customers 2014/15 iii. Smart metering for 100,000 domestic and Roll-out 2010/11 to small commercial customer 2014/15 iv. Use feeder metering and transformer ring Roll-out 2009/10 to fencing to guide and monitor loss campaigns 2014/15 v. Improve supply to people settlements Roll-out 2010/11 to 2014/15 16 4
3/1/2012 Threat 1. Electricity theft & vandalism of infrastructure 2. Sufficiency of Generation Capacity (delays due to protracted negotiations and lack of guarantees). 3. Vagaries of weather including drought and floods. 4. Affordability of power (new connections, tariffs, fuel costs) 5. Right of Way for power infrastructure (levies, encroachment, etc.) MAJOR SUB-SECTORAL SECTORAL CHALLENGES Mitigation • Dry type transformers, intruder alarms, relocation of transformers, etc . • Community policing, public education • Lobbying for stiff penalties for infrastructure vandals • Emergency generation • Raising reserve margin • Fast tracking some projects • Projects under Feed In Tariffs policy • Diversify generation sources • Regional Interconnection • Least Cost Generation Planning • Promoting green energy sources • Credit facilities to customers for connection costs • Public Education • Engaging local authorities 6. Uncoordinated urban planning. • Engaging local authorities, Government urban 17 planners and other infrastructural developers FUTURE OUTLOOK Strategies for meeting demand going forward are in place. Support from development partners for network infrastructural investment program in place – Kenya Power’s contribution also in place. Favorable operating environment is expected from a vibrant economy. Accelerated economic activity is expected from large scale expansion of infrastructure. Revised legislation to implement the new constitution will lead to : Better streamlining of stakeholder interests in power supply Clearer investment boundaries for players in the electricity subsector 18 THANK YOU 19 5
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Kenya Power UPDEA me..

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