National Energy Policy - Final Draft - 14 Nov 2013

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3. In relation to the County Governments, Part 2 of the Fourth Schedule provides that they shall beresponsible for county planning and development including electricity and gas reticulation andenergy regulation.4. It is necessary to review and align the energy sector policy, legal and regulatory framework withthe provisions, spirit and aspirations of the Constitution.1.3.2 Current Policy and Legislation1. The energy sector is guided by Sessional Paper No. 4 of 2004 and several pieces of legislation,the principal ones being:(a) The Energy Act, No. 12 which was enacted in 2006. It sought to amend and consolidatethe law relating to energy, provide for the establishment, powers and functions of theEnergy Regulatory Commission, the Energy Tribunal and the Rural Electrification Authority.(b) The Geothermal Resources Act No. 12, enacted in 1982 to control the exploitation and useof geothermal resources and vests the resources in the Government.(c) The Petroleum (Exploration and Production) Act, Chapter 308 of the Laws of Kenya wasenacted to regulate the negotiation and conclusion by the Government of petroleumagreements relating to the exploration for, development, production and transportation of,petroleum.(d) The Petroleum Development Fund Act was enacted in 1991 for the establishment of aPetroleum Development Fund and the imposition of a Petroleum Development Levy.2. Alongside the foregoing principal Acts, there are several other Acts that impact the energysector, including:-(a) The Standards Act, Chapter 496 of the Laws of Kenya that provides for establishment ofminimum quality specifications, mode, materials and apparatus for energy used in thecountry.(b) The Environmental Management and Co-ordination Act, 1999, which regulates theenvironmental aspect of the energy sector.(c) The Local Government Act, Chapter 265 of the Laws of Kenya which grants authority forapproval by local authorities of sites for construction and installation of fuel storage anddispensing facilities; business licensing and levies for electric power poles and wayleavescharges.(d) The Physical Planning Act, Chapter 286 of the Laws of Kenya that provides for zoning ofareas for storage, distribution and retailing of petroleum fuels and construction of electricpower sub-stations and other infrastructure.12 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
(e) The Weights and Measures Act, Chapter 513 of the Laws of Kenya under which storagetanks and dispensing equipment for sale of petroleum products are calibrated and regulatedfor accuracy.(f) The Public Procurement and Disposal Act No. 3 of 2005 that establishes procedures forefficient public procurement and for the disposal of unserviceable, obsolete or surplus,stores, assets and equipment by public entities.(g) The Anti-Corruption and Economic Crimes Act No. 3 of 2003.(h) The Ethics and Anti-Corruption Commission Act No. 22 of 2011 that established the Ethicsand Anti Corruption Commission pursuant to Article 79 of The Constitution.(i) The Public Officer Ethics Act No. 4 of 2003 that seeks to advance the ethics of a publicofficer by providing for a code of conduct and ethics for public officers.(j) The Land Act 2012.(k) The Land Registration Act, 2012.(l) The Commission of Revenue Allocation Act, 2011(m) The National Land Commission Act that established the National Land Commissionpursuant to Article 67 of the Constitution.(n) The Environment and Land Court Act No. 19 of 2011 that established the Environment andLand Court pursuant to Article 162(2)(b) of the Constitution.(o) The Urban Areas and Cities Act No. 13 of 2011 that gives effect to Article 184 of theConstitution.(p) The National Government Loans Guarantee Act No. 18 of 2011 that ensures thetransparent, prudent and equitable management of the authority to guarantee loansconferred on the National Government under Article 213 of the Constitution.(q) The Consumer Protection Act that establishes the regime of consumer protection law and toprevent unfair trade practices in consumer transactions and provide for matters connectedtherewith or incidental thereto.(r) The National Construction Authority Act that provides the establishment, powers andfunctions of the National Construction Authority and for connected purposes.(s) The County Government Act that provides for the regulation required to implement theprovisions relating to devolved government and to give effect to chapter 11 of theConstitution, to provide for county government powers, functions and responsibilities todeliver services and for connected purposes.13 1.0 – INTRODUCTION
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 and 14: 14. To enhance exploitation of the
Page 15 and 16: 24. The Government shall establish
Page 17 and 18: 1.0 - INTRODUCTION1.1 THE ROLE OF E
Page 19: (k) Promote appropriate standards,
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
Page 65 and 66: Limited in Kilifi County generates
Page 67 and 68: high temperatures estimated at 4-6
Page 69 and 70: Policies and StrategiesSolar Energy
Page 71 and 72:
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,
Page 107 and 108:
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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