National Energy Policy - Final Draft - 14 Nov 2013

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Policies and StrategiesEnergy Pricing and Socio-economic Issues2 The Government and other regulatory agencies shall conduct regulatoryimpact analysis on any action that could significantly affect energysupplies, distribution, use or pricing and such analysis shall provide adetailed statement of:Short Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-2030 (a) The impact on energy pricing of the proposed action.(b) Any adverse impact on energy that cannot be avoided should theproposal be implemented.(c) Alternatives to the proposed action.These shall be included in all proposed regulations and orders submittedfor legislation and which may have an impact on energy pricing.3 Through the Monetary Policy, institute measures that ensure stability ofthe foreign currency exchange rates.4 Monitor projects to ensure projects identified are implemented on time toensure security of supply and increased access by consumers. This willreduce high prices resulting from constrained supply (emergency powerand gas currently).5 Due to the impact of energy pricing on the cost of living and nationaleconomic development, the Government shall undertake to maintain acontrolling stake in the energy sector and link the economic policy with theenergy policy.6 The Government shall encourage users to shift to modern energy sourcesby encouraging marketers as well as providing incentives to increaseproduction and use. Further, by creating an enabling environment toachieve low and affordable prices for fuels, appliances and equipment,gadgets and apparatus among the majority of the citizens.7 Article 66(2) of the Constitution, establishes the principle that investmentin property must benefit the local communities and their economies.Therefore, the national government shall develop a framework to ensurelocal communities benefit from energy investment in their region.8 The Government shall establish a pricing mechanism for energy servicesand products at the national level to make energy tariffs affordable.9 The National Government will provide mechanisms for ensuring that allenergy development investors are compensated for annual inflation at100%.10 The Government will ensure that any charges by regulatory agencies,regional development authorities and county governments on energyinstallations, fuel or energy equipment shall be treated by NERC as apass through cost payable by end consumers.11 The Government shall regularly inform the public on the process ofenergy development, procurement and the prudently incurred costs.122 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
Policies and StrategiesEnergy Pricing and Socio-economic IssuesShort Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-203012 Develop necessary legislation for net-metering 13 Develop guidelines to cater for lower tariffs during off-peak hours and timeof use tariffs.14 Develop mechanisms for special tariffs in public schools and hospitals 123 8.0 – ENERGY FINANCING, PRICING AND SOCIO-ECONOMIC ISSUES
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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
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6. Lack of a special purpose vehicl
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Policies and StrategiesFossil Fuels
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4. Geothermal power plants use stea
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about 1,450MW remains unexploited.
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8. Ownership of physical dam reserv
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(d) Competing interests between dev
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3.4.2 Challenges1. Unsustainable us
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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
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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
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
Page 85 and 86: (e) Thermal power plants have a rel
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Page 89 and 90: Policies and StrategiesNuclear Elec
Page 91 and 92: Table 4.5 - Planned Regional Inter-
Page 93 and 94: to this worsening situation leading
Page 95 and 96: 4.5.5 Policies and Strategies and I
Page 97 and 98: Policies and StrategiesRural Electr
Page 99 and 100: Policies and StrategiesElectricity
Page 101 and 102: 7. The energy policy and the Energy
Page 103 and 104: 6.0 - LAND, ENVIRONMENT, HEALTH AND
Page 105 and 106: 6.2.3 Renewable Energy1. Generally,
Page 107 and 108: causes indoor air pollution leading
Page 109 and 110: 6.5 DISASTER PREPAREDNESS AND MITIG
Page 111 and 112: from the licensee.Policies and Stra
Page 113 and 114: Policies and StrategiesEnvironment,
Page 115 and 116: 6.7.4.4 Nuclear ElectricityPolicies
Page 117 and 118: of the risk levels.Policies and Str
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
Page 127 and 128: Figure 8.1 - Pass-Through Costs in
Page 129: Table 8.1 - Energy Tariffs and Cost
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
Page 143: Table 10.3 Nuclear electricity gene
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Page 148 and 149: County Population Area (km 2 ) Foss
Page 154 and 155: ACRONYMS AND GLOSSARY OF TERMS1. AC
Page 156 and 157: RD&DREAREPRMSSMRsSAPPToEVATWpResear
Page 158: Reticulation means the network used
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National Energy Policy - Final Draft - 14 Nov 2013

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