National Energy Policy - Final Draft - 14 Nov 2013

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Policies and StrategiesPetroleum Supply and Distribution7. Facilitate NOCK’s role of stabilizing the market/prices by usingappropriate measures including increased market presence andimportation of at least 30% of the country’s demand.8. Introduce incentives to attract investment in retail networks in theremote areas of the countryImplementation PlanShort Term2014-20179. Establish a one-stop shop for petroleum licensing. 10. Combat malpractices in the petroleum industry such as adulteration,dumping and under dispensing through compliance monitoring and byenhancing penalties.11. Enhance consumption of LPG, being an environmentally friendly andeconomic modern fuel by:Medium Term2014-2022(a) Constructing import handling, storage, and distribution facilities. (b) Providing fiscal incentives on LPG and related appliances. (c) Encouraging private sector investment in additional capacity forhandling and storage of LPG.12. Enforce minimum construction and operation standards for retail andwholesale dispensing sites.13. Enhancing security of supply of petroleum products by raising theoperational stock level from 21 to 30 days consumption afterconstruction of additional storage tanks.14. The Government to invest in NOCK to develop an offshore SingleBuoy Mooring (SBM) facility including additional storage facility linkedto the SBM in Mombasa through PPP.15. Develop additional storage and common truck loading facilities inMombasa and Nairobi.16. Provide appropriate incentives to facilitate and support public andprivate investments in the development of petroleum infrastructureincluding petroleum jetties, gas filling terminals, loading and storagefacilities in all parts of the country at least cost.17. Construct petroleum storage facilities at appropriate locations to meet30 days of operational stocks and 90 days of strategic reserve stocks.18. Government to facilitate private sector investors’ involvement in thedevelopment of a landlord port with a container terminal, gas terminaland oil jetty with a storage facility in Mombasa.19. Petroleum products quality to be reviewed occasionally to align themwith international standards by enhancing institutional capacity inKenya Bureau of Standards (KEBS) and NERC to enforce compliancewith fuel quality specifications for both domestic import and exportmarket..Long Term2014-2030 32 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
Policies and StrategiesPetroleum Supply and Distribution20. The Government shall facilitate NOCK to procure the ninety dayspetroleum strategic reserve stock.21. The Government shall enhance and support modernisation of theexisting refinery and fast track the development of new refineries toenhance petroleum refinery capacity in the region.22. The Government shall facilitate and support public and privateinvestments in off-loading, storage, transportation and evacuationinfrastructure for adequate supply and distribution of petroleumproducts.23. The Government shall establish mechanisms to ensure stable powersupply to support petroleum business.24. Government shall where necessary cushion Kenyan consumers fromthe negative effect of high petroleum prices.Implementation PlanShort Term2014-201725. Assess the continuing feasibility of pump price regulation. Medium Term2014-202226. Introduce measures to increase consumption of LPG. 27. Provide for management of regulated contracts in legislation.28. Provide incentives for investment in centralized gas reticulationsystems.29. Transportation of petroleum products by road to be restricted whereother cheaper and safer modes of transportation are available.30. Encourage private sector investment in the construction of commonuser truck and rail loading facilities.31. The government shall put enabling mechanisms to allow KPC applyits expertise regionally in petroleum infrastructure development.Long Term2014-20302.3 NATURAL GAS2.3.1 Background1. Natural gas accumulations can be found as pure methane or in conjunction with higherhydrocarbons. Natural gas is categorized as being one of three types:(a) Oil and associated gas,(b) Rich condensate and gas,(c) Dry gas.2. Conventional natural gas is typically found in sandstone reservoirs and can either be in the formof associated or non-associated gas. Associated gas is found together with crude oil, either asfree gas or dissolved in the oil. Non-associated gas is found without significant quantities of oil.33 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 and 38: (c) High sulphur levels have advers
Page 39: Policies and StrategiesPetroleum Ex
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
Page 89 and 90: 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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