National Energy Policy - Final Draft - 14 Nov 2013

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(a)(b)Creating appropriate legal, regulatory and institutional framework for the ESI.Ensuring provision of affordable reliable, efficient and sustainable electric powersupplies.(c) Increasing the population’s access to electricity as a means of stimulating economicgrowth.(d) Improving the efficiency of power distribution and supply through reductions in technicallosses and collection of revenues.(e) Creating a more competitive market structure with clear definition of roles for public andprivate sector players in generation, transmission, distribution and retail functions.21. In order to provide affordable electricity to transform the Kenyan economy, a roadmap to raisethe generation capacity by at least 5000MW from the current 1,664MW to slightly over 6,700MW by 2016 is proposed. Through this road map the generation cost is projected to reducefrom US¢ 11.30 to 7.41, while end-user tariffs are projected to reduce from US¢ 14.14 to 9 forcommercial/industrial customers and from US¢ 19.78 to 10.45 for domestic customers.22. The National Government shall:-(a) Transform the Kenya Nuclear Electricity Board into a Nuclear Electricity Corporation topromote and implement a nuclear electricity generation programme.(b) Develop and monitor implementation of electricity master plans for the country and theEastern African Region.(c) Support the development by KETRACO of new transmission lines, comprising of about5,000 km in the short term and 16,000 km by 2031 to enhance security, reliability andaffordability of electricity supply.(d) Facilitate open access to the transmission and distribution networks, designate a systemoperator and encourage regional interconnections to enhance regional electricity trade.(e) Provide incentives for development of robust distribution networks, including gradualelimination of overhead distribution systems to ensure efficient and safe provision ofdistribution services by duly licensed network service providers, so as to reduce powersupply interruptions and improve the quality of supply and service.(f) Put in place mechanisms to facilitate reduction in cost of new connections to supply.(g) Continue funding the development of distribution networks through NERA.Energy Efficiency and Conservation23. The importance of energy efficiency and conservation measures in the Kenyan economycannot be overemphasized, with possible annual energy savings in excess of KShs 2.5 billionin the industrial sector. Challenges to implementation of energy efficiency and conservationinitiatives include lack of awareness of the benefits and methods of conservation, apathy,limited technical capacity and inadequate data.6 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
24. The Government shall establish the Energy Efficiency and Conservation Agency (EECA) as afully-fledged national public entity to promote energy efficiency and conservation.25. EECA shall spearhead energy efficiency and conservation activities to improve the energysecurity and mitigate the effects of climate change by lowering Green House Gas emissions.Measures will also be introduced in the transport sector, to promote fuel efficiency byencouraging the use of mass transportation of passengers and cargo to capitalize on theeconomies of scale, as well as, the promotion of new and efficient technologies.Land, Environment, Health and Safety26. In carrying out its planning and development mandate pursuant to the Fourth Schedule, Part 2,paragraph 8 (e) regarding electricity and gas reticulation and energy regulation, every countygovernment shall set aside suitable land for energy infrastructure development purposes,including but not limited to projects recommended in the indicative national energy plans.27. The Government shall facilitate:(a) Development of a Resettlement Action Plan Framework for energy related projects;including livelihood restoration in the event of physical displacement of communities.(b) Access to land where exploration blocks fall on private land, community land and culturalheritage areas including game parks/reserves.28. The Government shall:(a) Put in place mechanisms to eliminate kerosene as a household energy source by 2022.(b) Ensure the creation of disaster response units in each county and in relevant energy sectorentities.Devolution and Access to Energy Services29. The National Government will be responsible for energy policy while the County Governmentswill be responsible for planning and development, including electricity and gas reticulation andenergy regulation within their jurisdictions.30. A framework on the functional devolution of roles between the two levels of government will bedeveloped in consultation with all stakeholders to avoid the uncertainty/overlap ofresponsibilities. Amongst the roles to be addressed in the framework include:(a)(b)Electricity and gas reticulation as well as energy regulation.Establishment of energy disaster management centres in all the counties.31. NERA shall formulate cooperation arrangements with County Governments for implementationof rural electrification and renewable energy programmes.7 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 and 12: EXECUTIVE SUMMARY1. This policy doc
Page 13: 14. To enhance exploitation of the
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
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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
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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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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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