Policies and StrategiesNatural Gas12. CNG technology shall be applied for transport starting with publictransport initially on pilot basis in areas with supply of natural gas.13. The Government shall promote studies for overall gas demand inthe country to facilitate planning.<strong>14</strong>. Review Cap 308 and the model PSC to address gaps and providefor: gas sharing terms, environmental protection, conservation andmanagement; and profit-gas revenue sharing and management.15. Enhance manpower, technical capacity and local content in allaspects of petroleum activities.Short Term20<strong>14</strong>-201716. Develop mechanisms for sharing and management of gas revenue. 17. Undertake measures to fast track commercial gas discoveryincluding CBM and Shale Gas.18. In the event of discovery of crude oil together with natural gas,companies should endeavour to ensure that secondary measuresare instituted to exhaustively produce from such wells.19. Flaring of the natural gas shall not be allowed except for safety andtesting purposes. Where flaring is done, it shall be under aregulated regime and monitoring and reporting of the same shall berequired.20. NOCK in partnership with the private sector to construct an LNGimport and export terminal. Where natural gas is available within adistance of 2000 km, the preferred option is to use a gas pipeline.21. Upon discovery of commercial quantities of natural gas, empowerKPC to construct and operate a natural gas pipeline.22. Establish a regulatory framework for the Midstream andDownstream Natural Gas sector by the <strong>National</strong> <strong>Energy</strong> RegulatoryCommission.Implementation PlanMedium Term20<strong>14</strong>-2022Long Term20<strong>14</strong>-20302.4 COAL RESOURCES2.4.1 Overview1. The Ministry of <strong>Energy</strong> identified coal as one of the indigenous sources of energy that will drivethe development of strategic initiatives for Vision 2030. It was recognized that the key toincreased development lay in early identification of indigenous energy sources, exploiting theseresources and establishing an appropriate institutional framework for delivery to the consumers.2. Coal is a readily combustible rock containing more than 50% by weight and more than 70% byvolume of carbonaceous material formed from compaction of variously altered plant remains. Itis used as a source of energy, including electricity generation. It is the most affordable fuelworldwide and has a potential to become the most reliable and easily accessible energy source.38 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER <strong>2013</strong>
3. The introduction of clean coal technology (CCTs) in coal fired power plants reduces emissionsand extracts sulphur for other applications such as chemical and fertilizer production whilecapturing carbon for storage (CCS). Current world coal energy consumption by sector is 42%electricity, 25% industrial and 33% other uses.4. The country has adequate coal deposits for commercial exploitation and the Government is fasttracking exploration and development of the resource for power generation and industrial use.2.4.2 Demand for Coal1. In Kenya, coal is mainly used by cement manufacturers to complement heavy fuel oil forprocess heat. As at <strong>2013</strong>, all coal utilised in Kenya was imported. Between 2006 and <strong>2013</strong>consumption of coal averaged <strong>14</strong>0,000 metric tonnes per annum. This constitutes less than 1%of the total primary energy consumed in the country.2. Coal consumption is expected to increase with the discovery and mining of coal deposits in MuiBasin in Kitui County and other parts of the country.2.4.3 Coal SupplyTable 2.4 shows the cost and quantities of coal imports.Table 2.4 Coal Imports 2004 to 2009YEAR 2004 2005 2006 2007 2008 2009 2010 2011KSHS. '000 1,083,769 731,607 820,773 934,578 1,491,007 1,356,343 1,623,680 2,322,491TONNES 155,000 128,000 171,000 156,000 159,000 138,000 165,200 236,300Source: Statistical Abstract, 2010, Kenya <strong>National</strong> Bureau of Statistics2.4.4 Coal Upstream Development1. There are commercially viable coal reserves in the Mui Basin situated in Kitui County as shownin Figure 2.7. The basin is sub-divided into four blocks, namely; A, B, C and D as depicted inFigure 2.8.2. In 2010 four hundred million tonnes of coal reserves were confirmed in Block C. The coal hasbeen analyzed and found to range in ranking from lignite to sub-bituminous with calorific valuesranging from 16 to 27 MJ/kg. Further exploration work is on going in Blocks A and B. Blocks Cand D are under concession. The blocks are shown in Table 2.5.39 2.0 – FOSSIL FUELS
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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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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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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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9.7 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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County Population Area (km 2 ) Foss
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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