National Energy Policy - Final Draft - 14 Nov 2013

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Policies and StrategiesPetroleum Exploration and ProductionShort Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-2030(d)4. Government to establish a National Data Centre and laboratory toenhance primary data acquisition, analysis and interpretation in openblocks and to enhance partnership in data exchange so as to reducecost in exploration and access to new technologies5. Sub-divide and create new petroleum exploration blocks, based ontechnical data and negotiate favourable work programmes that willsee investors with requisite capacity assist in data acquisition.6. Review Cap. 308 to incorporate industry best practice adapted to fitlocal conditions. The revised Act shall provide for gas sharing terms,compensation, windfall profits, royalties and Corporate SocialResponsibility.7. Government shall enhance manpower, technical capacity and localcontent in petroleum exploration activities by establishing programmesin conjunction with local industry associations, local traininginstitutions and international institutions.8. The Government shall develop legal mechanisms for sharing andmanagement of petroleum benefits, in line with the ExtractiveIndustries Transparency Initiative.9. Review the model PSC to ensure that it is adequate to supportdynamic, competitive, well managed exploration activities inclusive ofbut not limited to: compensation regime; licensing rounds; communityawareness and participation; windfall profits; gas sharing terms;Corporate Social Responsibility requirements; government share outof monetary gains from transfer of a PSC; defined criteria forevaluation of terms provided in PSC applications for prudence andcompetitive bidding for blocks; environmental protection, conservationand management; sharing of benefits mechanism between thenational government, county government and local community;payment of royalty on gross oil produced; local content requirement.10. Enhance corporate governance in the Government institutionscharged with petroleum exploration and development. 11. Restructure and enhance NOCK’s financial capacity to conductupstream business.12. Establish a one-stop shop for petroleum upstream licensing andoperations.13. Strengthen monetary and fiscal regimes to maximize the governmenttake on petroleum exploitation while taking into account the investorsinterests.30 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
Policies and StrategiesPetroleum Exploration and Production14. Provide incentives for investments in marginal oil and gas discoveriesthat could have the potential to deliver much financial and socioeconomicvalue.15. Investment in petroleum exploration and production activities shallinclude technology transfer and development of local manpowerincluding engaging qualified local personnel as a priority.16. The Government will support local investors that have the capacityand interest to participate in and/or undertake petroleum explorationand production.17. The Government will support collaboration and synergy by anygovernment owned agencies keen to jointly participate and undertakepetroleum exploration and production18. The Government to facilitate KPC to develop petroleum and naturalgas infrastructure i.e. crude oil pipelines and storage tanks and that itwill be the Government’s lead agency in the development of suchfacilities in public private partnership (PPP) arrangement.19. Enforce all terms in the PSCs.Short Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-2030 20. The Government shall develop an Oil and Gas Master Plan; intensifyexploration activities; enhance the utilisation of local capacity in oilexploration; upgrade the local exploration technology; commencecommercial production of petroleum.2.2.12.2 Petroleum Supply and Distribution (Midstream and Downstream)Policies and StrategiesPetroleum Supply and Distribution1. Collaborate with the Kenya Railways Corporation and itsconcessionaire to maximise the utilisation of rail transport forpetroleum products.2. KPC to replace the Mombasa-Nairobi pipeline, extend the oil pipelineto enhance regional inter-connection, construct common user truckloading facilities and spur lines as necessary.Implementation PlanShort Term2014-20173. Develop petroleum pipeline infrastructure along the LAPSSET project. Medium Term2014-2022Long Term2014-2030 4. Government shall provide security for petroleum installations. 5. Provide a legal and regulatory framework for midstream petroleumand gas infrastructure including third party access at reasonable termsand conditions6. Government to co-ordinate energy infrastructure development whichare interlinked to facilitate efficient utilization of petroleum resources.31 2.0 – FOSSIL FUELS
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 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: (c) High sulphur levels have advers
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
Page 73 and 74: through co-generation and bioethano
Page 75 and 76: (d) 1 sea wave energy projects with
Page 77 and 78: 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
Page 87 and 88: 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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