National Energy Policy - Final Draft - 14 Nov 2013

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1.4 INSTITUTIONAL ARRANGEMENTSSessional Paper No. 4 of 2004 and the Energy Act No.12 of 2006 restructured the sector in abid to facilitate high level performance. The Policy has enabled increased private sectorparticipation in the development of the sector whilst simultaneously focusing on improvedmanagement and delivery of energy services. This was intended to enable the sector achieveits mission of providing clean, sustainable, affordable, reliable and secure energy services atleast cost while protecting the environment. The following are the key actors in the sector:-1. Ministry of Energy and Petroleum (MoEP)It is responsible for formulation and articulation of energy policies through which it provides anenabling environment for all stakeholders. Its tasks include national energy planning, training ofmanpower and mobilisation of financial resources.2. Energy Regulatory Commission (ERC)It was established as an energy sector regulator under the Energy Act, 2006, with responsibilityfor economic and technical regulation of electric power, renewable energy, and downstreampetroleum sub-sectors. Its functions also include tariff setting, review, licensing, enforcement,dispute settlement and approval of power purchase and network service contracts.3. Energy TribunalThis quasi-judicial body was established under section 108 of the Energy Act, 2006. It cameinto operation in July 2007 to primarily hear appeals against the decisions of ERC. It also hasjurisdiction to hear and determine all matters referred to it relating to the energy sector.4. The Kenya Power & Lighting Company Limited (KPLC)KPLC is a State Corporation with GoK shareholding of 50.1% and private shareholding of49.9% as at December 2011. It purchases electrical energy in bulk from KenGen and otherpower producers and carries out transmission, distribution, supply and retail of electric power.5. Kenya Electricity Generating Company Limited (KenGen)KenGen is a State Corporation with GoK shareholding of 70% and private shareholding of 30%as at December 2011. It is mandated to generate electric power, currently producing the bulk ofelectricity consumed in the country. The company utilises various sources to generateelectricity ranging from hydro, geothermal, thermal to wind.6. Rural Electrification Authority (REA)REA was established under section 66 of the Energy Act of 2006 as a body corporate with theprincipal mandate of extending electricity supply to rural areas, managing the rural electrification14 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
fund, mobilizing resources for rural electrification and promoting the development and use ofrenewable energy.7. Geothermal Development Company Limited (GDC)This is a 100% state-owned company established by the Government of Kenya as a SpecialPurpose Vehicle for the development of geothermal resources in Kenya.8. Kenya Electricity Transmission Company Limited (KETRACO)This is a GoK wholly owned company established to be responsible for the development,maintenance and operation of the national transmission grid network. It is also responsible forfacilitating regional power trade through its transmission network.9. Independent Power Producers (IPPs)IPPs are private companies which generate power and sell electricity in bulk to KPLC. As at2011, they accounted for about 26% of the country’s installed capacity and play an importantrole in bridging the demand gap. By December 2011, the operating IPPs are:-(a) Iberafrica Power (E.A.) Company Limited (thermal power plant)(b) Tsavo Power Company Limited (thermal power plant)(c) Mumias Sugar Company Limited (co-generation)(d) Orpower 4 Inc (geothermal power plant)(e) Rabai Power Company Limited (thermal power plant)(f) Imenti Tea Factory Company Limited (mini-hydro).10. Kenya Petroleum Refineries Limited (KPRL)Kenya Petroleum Refineries Limited is a limited liability company with its main business beingprocessing of crude oil. The Company is co-owned on a 50-50% shareholding basis by GoKand Essar Energy Overseas Limited. The refinery has a name plate capacity of 4 million tonnesper annum but processes 1.6 million tonnes of crude oil per annum for the local market.11. Kenya Pipeline Company Limited (KPC)KPC is a State Corporation with 100% GoK ownership. Its business is mainly storage,transportation and handling of refined petroleum products in the country.12. National Oil Corporation of Kenya Limited (NOCK)NOCK is a wholly owned state corporation mandated to stabilise the petroleum supply marketby participating in all aspects of the petroleum industry namely upstream, mid-stream anddownstream activities.15 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 and 20: (k) Promote appropriate standards,
Page 21: (e) The Weights and Measures Act, C
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,
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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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