National Energy Policy - Final Draft - 14 Nov 2013

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of adequate import/off-loading, storage distribution and fuel dispensing facilities through publicprivate partnerships as appropriate.8. The quality of petroleum products will be constantly reviewed to conform to internationalstandards. To this end the institutional capacity will be enhanced to enforce fuel qualityspecifications for both domestic and export market.9. Coal has the potential of providing affordable, reliable and easily accessible energy source, forelectricity generation. Extensive coal exploration has taken place in the Mui Basin situated inKitui County where a total of 76 wells have been drilled with 42 wells intercepting coal seams ofvarious thicknesses at different depths. More wells are being drilled to appraise the coalreserves in the basin of which Block C has been appraised to have 400 million tonnes. Morecoal exploration is going on in other parts of the country. These resources are expected toprovide about 4,500MW of electricity generation by 2030.10. The Government shall promote an intensive coal exploration programme and efficient utilisationof coal resources while minimising the environmental impacts associated with its use. It willestablish data and information on coal resources, intensify promotional campaigns in local andinternational conferences and exhibitions. A conducive investment environment for explorationand exploitation of coal will be created by providing fiscal incentives to attract investment in thissector.11. Following the discovery of petroleum and coal deposits, the Government shall:(a) Adopt and implement the Extractive Industries Transparency Initiative (EITI) Treaty as ademonstration of its commitment to good governance, increasing scrutiny over revenuecollection from these resources, and improving the country’s investment climate;(b) Reconstitute the National Fossil Fuels Advisory Committee (NAFFAC) and anchor it in law.(c) Develop mechanisms for sharing of benefits between the National and CountyGovernments as well the local communities in accordance with Article 69 of theConstitution.(d) establish a one stop shop for licensing of fossil fuel operations and undertakings with a viewto enhancing development of the requisite infrastructure for fossil fuels12. Kenya recently discovered natural gas at Mbawa in Lamu. The commercial viability is yet to beascertained.Renewable Energy13. Renewable energy, derived from the naturally occurring resources including geothermal, hydro,solar, wind and ocean energy, biomass, biofuels, biogas and municipal waste can supply ourneeds and those of future generations in a sustainable way if effectively harnessed throughcareful planning and advanced technology. In addition, renewable energy has potential toenhance energy security, mitigate climate change, generate income, create employment andgenerate foreign exchange savings.4 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
14. To enhance exploitation of the vast geothermal resources that Kenya is endowed with, theGovernment will continue to fund the Geothermal Development Company (GDC) so as tomanage the geothermal exploration risk and attract investors. Further, the Government willencourage investment in the geothermal subsector so as to ensure that Kenya achieves atleast 5,500MW of geothermal electric power generation by 2030, as well as enhancing directuses of the resource.15. Kenya has an estimated hydropower potential of about 6,000MW comprising of large hydros(sites with capacity of more than 10MW) and small hydros. Of the large hydros, 807MW hasbeen exploited and accounts for close to 50% of installed generation capacity as at 2012 whileabout 1,450MW remains unexploited. Potential for small hydros is over 3,000MW, of which,less than 25MW has been developed.16. In view of the fact that hydropower is vulnerable to variations in hydrology and climate, it will benecessary to put in place a mechanism to cushion generators, transmitters, distributors andconsumers against the effects of adverse hydrology.17. The Government shall establish an inter-ministerial Renewable Energy Resources AdvisoryCommittee (RERAC) to advise the cabinet secretary on, inter alia:(a) Criteria for allocation to investors of energy resource areas.(b) Licensing of Renewable Energy resource areas(c) Management of water towers and catchment areas.(d) Development of multi-purpose projects such as dams and reservoirs for power generation,portable water, flood control and irrigation with a view to ensuring proper coordination atpolicy, regulatory and operational levels on matters relating to the various uses of waterresources.(e) Management and development of other energy resources such agricultural and municipalwaste, forests, and areas with good wind regimes, tidal and wave energy.18. The Government shall transform the Rural Electrification Authority into the NationalElectrification and Renewable Energy Authority (NERA) to be the lead agency for developmentof renewable energy resources other than geothermal and large hydros.Electricity Sub-Sector19. Electricity is a secondary source of energy generated through the consumption of primaryenergy sources namely fossil fuels, renewable energy and nuclear energy. By virtue of itsversatility in application, electricity is crucial to the socio-economic development of the countryand is the most sought after energy service, access to which is associated with rising or highquality of life.20. Reform and restructuring of the Kenyan electricity supply industry (ESI) has been going onsince the mid-90s with the aims of, inter alia:5 EXECUTIVE SUMMARY
Page 1 and 2: NOVEMBER 2013 DRAFTREPUBLIC OF KENY
Page 3 and 4: 2.4.4.1 Challenges in Coal explorat
Page 5 and 6: 4.5.5 Policies and Strategies and I
Page 7 and 8: Table 10.1 Energy Generation Potent
Page 9 and 10: FOREWORD BY THE CABINET SECRETARY F
Page 11: EXECUTIVE SUMMARY1. This policy doc
Page 15 and 16: 24. The Government shall establish
Page 17 and 18: 1.0 - INTRODUCTION1.1 THE ROLE OF E
Page 19 and 20: (k) Promote appropriate standards,
Page 21 and 22: (e) The Weights and Measures Act, C
Page 23 and 24: fund, mobilizing resources for rura
Page 25 and 26: 2.0 - FOSSIL FUELS2.1 BACKGROUND1.
Page 27 and 28: immense value through acquisition o
Page 29 and 30: and averaging at more than US$110 p
Page 31 and 32: town of Mombasa, through Nairobi to
Page 33 and 34: 3. The prices in Kenya as published
Page 35 and 36: 6. It is hoped that the discovery o
Page 37 and 38: (c) High sulphur levels have advers
Page 39 and 40: Policies and StrategiesPetroleum Ex
Page 41 and 42: Policies and StrategiesPetroleum Su
Page 43 and 44: plants has several advantages over
Page 45 and 46: Natural GasShort Term2014-2017Mediu
Page 47 and 48: 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
Page 59 and 60: (d) Competing interests between dev
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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Limited in Kilifi County generates
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high temperatures estimated at 4-6
Page 69 and 70:
Policies and StrategiesSolar Energy
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3. Inadequate wind regime data.4. L
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through co-generation and bioethano
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(d) 1 sea wave energy projects with
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3.12.3 Policies and Strategies and
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4.0 - ELECTRICITY4.1 BACKGROUND1. E
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2. It is estimated that as at 2013,
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Figure 4.2 - Evolution of the Energ
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(e) Thermal power plants have a rel
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6. Nuclear fuel can be recycled and
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Policies and StrategiesNuclear Elec
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Table 4.5 - Planned Regional Inter-
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to this worsening situation leading
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4.5.5 Policies and Strategies and I
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Policies and StrategiesRural Electr
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Policies and StrategiesElectricity
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7. The energy policy and the Energy
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6.0 - LAND, ENVIRONMENT, HEALTH AND
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6.2.3 Renewable Energy1. Generally,
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causes indoor air pollution leading
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6.5 DISASTER PREPAREDNESS AND MITIG
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from the licensee.Policies and Stra
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Policies and StrategiesEnvironment,
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6.7.4.4 Nuclear ElectricityPolicies
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of the risk levels.Policies and Str
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6 It is a further requirement under
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Policies and StrategiesAccess to En
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Kenya.Policies and StrategiesEnergy
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15. Seek financing of clean energy
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Figure 8.1 - Pass-Through Costs in
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Table 8.1 - Energy Tariffs and Cost
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Policies and StrategiesEnergy Prici
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Policies and StrategiesCross Cuttin
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3. In 2009, ERC established a commi
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9.3.3 Policies and Strategies and I
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9.7 ENERGY RESOURCES BENEFITS SHARI
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10.0 - ANNEXURESAnnex 10.1 The PSC
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Table 10.3 Nuclear electricity gene
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Table 10.4 Summary of the Energy St
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County Population Area (km 2 ) Foss
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Page 152 and 153:
Page 154 and 155:
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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