National Energy Policy - Final Draft - 14 Nov 2013

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5.0 – ENERGY EFFICIENCY AND CONSERVATION5.1 BACKGROUND1. Energy efficiency and conservation refers to measures aimed at reducing energy consumptionwithout sacrificing productivity or increasing costs. Energy efficiency and conservationmeasures have the potential to scale down capital investments needed to provide additionalsupplies and reduce overall resource use. It also has the potential of reducing cost ofproduction at the end user level.2. Energy efficiency and conservation reduces energy demand, improves energy security,improves competitiveness and helps to mitigate climate change by lowering GHG emissions.3. A number of factors have highlighted the importance of, and urgency for, energy efficiency andconservation:(a) High energy prices – the continuing increase in the price of energy has significantlycontributed to increased interest in energy efficiency and conservation.(b) Insecurity of supply – expressed in the growing discomfort about the vulnerability anduncertainty of future energy supplies as well as the volatility of their prices.(c) Adverse environmental and health impacts – there is increasing concern about spirallingdegradation of the environment as exemplified by increased local air pollution and acidprecipitation from ever growing fossil fuel combustion. Associated with this are globalissues such as climate change as a result of GHG emissions.(d) Depletion of energy resources – there is growing unease at the rate of depletion of majorenergy resources. The most used energy resources such as fuel wood and fossil fuels arebecoming scarce as demand rises.4. From the consumer’s point of view, energy efficiency and conservation measures yield directsavings on the energy bill. From the national stand point, adoption of such measures wouldsignificantly reduce the foreign exchange costs of oil imports. It would also serve to deferadditional investment in power generation capacity. Ultimately, improved energy efficiencywould boost the competitiveness of Kenyan products owing to reduced input costs.5. A survey of Kenyan industries revealed that wastage of primary energy input ranged from 10%to 30%. This was attributed to a lack of information, motivation and know-how. Financialrestrictions were among the other factors that contributed to that outcome. At the end of theinitial phase of the Global Environmental Fund-Kenya Association of Manufacturers (GEF-KAM)Industrial Energy Efficiency Project, cumulative energy savings to the tune of 1,800 GWh hadbeen attained.6. It is expected that with continued efforts through the CEEC and the private sector, it is possibleto avoid emissions of CO2 to the tune of 5.2 million tonnes by the year 2015. This correspondsto energy savings of about 16,130 GWh.92 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
7. The energy policy and the Energy Act 2006 (Part V Sections 104-106) provide the policy andlegal framework for energy efficiency and conservation programmes and strategies in thecountry.5.2 CHALLENGES1. Inadequate awareness of the potential benefits from efficient use and utilization of energyefficiency and conservation practices, technology and appliances.2. Consumer apathy. There is a tendency for consumers not to embrace energy efficiency andconservation best practices as long as there is good supply of energy for current use.3. Limited use of available conservation tools / new technology with increased efficiency leads toenergy wastage.4. High technical losses in the generation, transmission and distribution systems.5. Limited technical capacity, training and expertise in energy management and conservation tooperationalize requirements of sections 104, 105 and 106 of the Energy Act, 2006.6. Lack of comprehensive, reliable energy audit data and information covering various sectors andsub-sectors.7. Slow adoption of conservation opportunities and measures due to socio-economic factors.8. Inadequate financing owing to challenges in sourcing funds and credit mobilization for energyefficiency and conservation projects are impediments to investment in this area9. Insufficient standardized equipment and appliances that would benefit from tax rebates andfiscal incentives.10. Low awareness of existing fiscal, legal, regulatory incentives, frameworks and mechanismssuch as tax holidays, generation plant and equipment tax rebates, emerging credit facilities suchas green energy facility grants and loans and carbon credit from the Clean DevelopmentMechanism (CDM).11. High cost of optimisation technologies in energy development and consumption.Policies and Strategies and Implementation Plan – Energy Efficiency and ConservationPolicies and StrategiesEnergy Efficiency and ConservationShort Term2014-20171. Recognize efficiency and conservation as a high-priority energy resource. 2. Promote energy efficiency and conservation initiatives in all sectorsincluding schools.3. Enhance the provision of energy audits and advisory services in thecounties.4. Promote the establishment of laboratories for energy efficiency testing. Implementation PlanMedium Term2014-2022Long Term2014-2030 93 5.0 – ENERGY EFFICIENCY AND CONSERVATION
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NOVEMBER 2013 DRAFTREPUBLIC OF KENY
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2.4.4.1 Challenges in Coal explorat
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4.5.5 Policies and Strategies and I
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Table 10.1 Energy Generation Potent
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FOREWORD BY THE CABINET SECRETARY F
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EXECUTIVE SUMMARY1. This policy doc
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14. To enhance exploitation of the
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24. The Government shall establish
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1.0 - INTRODUCTION1.1 THE ROLE OF E
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(k) Promote appropriate standards,
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(e) The Weights and Measures Act, C
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fund, mobilizing resources for rura
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2.0 - FOSSIL FUELS2.1 BACKGROUND1.
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immense value through acquisition o
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and averaging at more than US$110 p
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town of Mombasa, through Nairobi to
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3. The prices in Kenya as published
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6. It is hoped that the discovery o
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(c) High sulphur levels have advers
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Policies and StrategiesPetroleum Ex
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Policies and StrategiesPetroleum Su
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plants has several advantages over
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Natural GasShort Term2014-2017Mediu
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3. The introduction of clean coal t
Page 49 and 50: 6. Lack of a special purpose vehicl
Page 51 and 52: Policies and StrategiesFossil Fuels
Page 53 and 54: 4. Geothermal power plants use stea
Page 55 and 56: about 1,450MW remains unexploited.
Page 57 and 58: 8. Ownership of physical dam reserv
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Page 61 and 62: 3.4.2 Challenges1. Unsustainable us
Page 63 and 64: 4. Land will need to be set aside f
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Page 69 and 70: Policies and StrategiesSolar Energy
Page 71 and 72: 3. Inadequate wind regime data.4. L
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Page 75 and 76: (d) 1 sea wave energy projects with
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Page 79 and 80: 4.0 - ELECTRICITY4.1 BACKGROUND1. E
Page 81 and 82: 2. It is estimated that as at 2013,
Page 83 and 84: Figure 4.2 - Evolution of the Energ
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Page 87 and 88: 6. Nuclear fuel can be recycled and
Page 89 and 90: Policies and StrategiesNuclear Elec
Page 91 and 92: Table 4.5 - Planned Regional Inter-
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Page 97 and 98: Policies and StrategiesRural Electr
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Page 103 and 104: 6.0 - LAND, ENVIRONMENT, HEALTH AND
Page 105 and 106: 6.2.3 Renewable Energy1. Generally,
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Page 113 and 114: Policies and StrategiesEnvironment,
Page 115 and 116: 6.7.4.4 Nuclear ElectricityPolicies
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Page 119 and 120: 6 It is a further requirement under
Page 121 and 122: Policies and StrategiesAccess to En
Page 123 and 124: Kenya.Policies and StrategiesEnergy
Page 125 and 126: 15. Seek financing of clean energy
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Page 129 and 130: Table 8.1 - Energy Tariffs and Cost
Page 131 and 132: Policies and StrategiesEnergy Prici
Page 133 and 134: Policies and StrategiesCross Cuttin
Page 135 and 136: 3. In 2009, ERC established a commi
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Page 139 and 140: 9.7 ENERGY RESOURCES BENEFITS SHARI
Page 141 and 142: 10.0 - ANNEXURESAnnex 10.1 The PSC
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County Population Area (km 2 ) Foss
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County Population Area (km 2 ) Foss
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ACRONYMS AND GLOSSARY OF TERMS1. AC
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RD&DREAREPRMSSMRsSAPPToEVATWpResear
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Reticulation means the network used
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National Energy Policy - Final Draft - 14 Nov 2013

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