National Energy Policy - Final Draft - 14 Nov 2013

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Figure 2.7 - Location of the Mui BasinEMBUMACHAKOSMERUISIOLOTAITA TAVETATANA RIVERKILIFIGARISSASOMALIAYATTAKituiMwingiNUUMUIMIAMBANIMutituENDAUMUTITUMutomoZOMBEVOOKANZIKUATHIMUTHALAMUINDIAN OCEANYATTAMIGWANIMUTUNGONIMATINYANITSEIKURUTHARAKAKyusoKATSEKYUSOMULANGOMIWANIENDUINZAMBANIKISASIIKANGAMUTOMOIKUTHAMIVUKONINGOMENIUKASIBasement rocks (Mozambiquan Belt)Mui BasinWamwathiKarungaMutwang’ombeMuiIsekeleMutituYoonyeKabatiZombeMathukiNorthBasement rocksMui Basin Sediments4 60 2 KmFigure 2.8 - The Four Blocks inthe Mui BasinMwingiKabatiMUI BASIN C OAL BLOCKS A, B, C & DMWINGIKITUIKituiEnziuNguniBLOCK D(120 sq.km)MuiBLOCK C(131.5 sq.km)BLOCK B(117.5 sq.km)EndauBLOCK A(121.5 sq.km)TANZANIAKWALEMombasaINDEX 2Kisa siTable 2.5 - Blocks in Mui Basin and the Wells DrilledBlock Area (km 2) Drilled Wells Coal InterceptedA (Zombe – Kabati) 121.5 8 4 WellsB (Itiko – Mutito) 117.5 8 4 wellsC (Yoonye – Kateiko) 131.5 56 32 wellsD (Isekele – Karunga) 120.0 4 2 wellsSource: MoE3. The Government is also carrying out exploration for coal at the Coastal Region in Taru Basin inKwale and Kilifi Counties and has extended the activities to other parts of the country and in thisit has established 31 more coal blocks for the purpose of establishing coal potential anddelineating the blocks for concessioning.4. The Government has concessioned Blocks C and D in the Mui Basin for coal resourcedevelopment with the objective of generating 960MW from a coal fired plant in Kitui County.5. As per the 2013 least cost power development plan (LCPDP), coal is projected to provide4,500MW of electricity by 2030.2.4.4.1 Challenges in Coal exploration1. Limited skills and expertise in core drilling disciplines.2. Limited coal reserve data due to low intensity of exploration.3. Poor infrastructure; coal resources are mostly situated in remote areas where there is lack ofdeveloped road, water, communication and electricity.4. Lack of interest by major coal exploration companies due to limited technical data.5. Absence of a legal, fiscal and regulatory framework for coal exploration, exploitation anddevelopment.40 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
6. Lack of a special purpose vehicle to spearhead exploration, assessment and development ofcoal resources.2.4.5 Coal Mid and Downstream DevelopmentThe Government is working with a strategic investor to build a coal fired power plant in Lamu Countyin the coastal region. Phase 1 of the plant will have a capacity of 960MW. Construction of the plantis expected to commence in 2014 with a commissioning date of 2016. However, there is need todevelop adequate and appropriate coal handling and storage facilities onshore.2.4.5.1 Challenges in Coal Mid and Downstream1. Inadequate technical capacity for coal mid and downstream activities.2. Absence of a standard import and export coal handling facilities.3. Underdeveloped road and railway transportation system.4. Undeveloped processing facilities for coal.5. Insufficient power supply in the coal field.6. Undeveloped capacity to store and evacuate coal products.7. High initial cost of acquiring the necessary infrastructure.8. High transportation cost from the processor to end user.2.4.6 Policies and Strategies - Coal (Upstream, Midstream and Downstream)Policies and StrategiesCoalShort Term2014-20171. Develop local expertise and enhance local content in coal explorationand production through training and collaboration with explorationcompanies, training and research institutions.2. Create appropriate legal, fiscal and regulatory framework for coal exploration, exploitation and development3. Establish coal energy research centre within the national energy institute capable of handling coal analysis and other related studies.4. Adapt clean coal technology and provide appropriate fiscal incentives. 5. Create new coal exploration blocks based on technical data. 6. Enhance regional co-operation in data and information exchange for coalexploration.7. Kenya Railways Corporation and its concessionaires shall maximise the utilisation of rail transport for coal products.8. Establish a one-stop shop for coal licensing. Implementation PlanMedium Term2014-2022Long Term2014-20309. Enhance budgetary support for exploration and development of coalresources.41 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 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: 3. The introduction of clean coal t
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
Page 91 and 92: Table 4.5 - Planned Regional Inter-
Page 93 and 94: to this worsening situation leading
Page 95 and 96: 4.5.5 Policies and Strategies and I
Page 97 and 98: 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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