National Energy Policy - Final Draft - 14 Nov 2013

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3.0 – RENEWABLE ENERGY3.1 BACKGROUND1. Renewable energy is derived from naturally occurring resources, principally the movement ofwind and water, the heat and light of the sun, plant material and animal waste, and geothermal(the heat in the earth’s crust). All these resources can supply our needs and those of futuregenerations in a sustainable way. Effectively harnessing these renewable resources requirescareful planning and advanced technology.2. Renewable energy has the potential to enhance energy security and reliability; generate incomeand create employment; enable the country to make substantial foreign exchange savings byreducing dependence on imported fuels and its attendant price volatility, and mitigate climatechange as it has minimal adverse effects on the environment.3. According to the Economic Survey 2013 biomass provides 69% of the country’s overall energyrequirements while petroleum accounts for about 22% and electricity 9%. 74.5% of theelectricity component is generated using renewable energy sources with fossil fuels providingthe balance of 25.5%.3.2 GEOTHERMAL ENERGY3.2.1 Background1. Below the earth's crust, there is a layer of hot andmolten rock called magma. Heat is continuallyproduced there, mostly from the decay ofnaturally radioactive materials such as uraniumand potassium. The amount of heat within 10,000metres of the earth's surface contains 50,000times more energy than all the oil and natural gasresources in the world.2. The areas with the highest undergroundtemperatures are in regions with active orgeologically young volcanoes. These occur atplate boundaries or at places where the crust isthin enough to let the heat through.3. In Kenya, more than 14 high temperaturepotential sites occur along Rift Valley with anestimated potential of more than 10,000 MWe.Other locations include Homa Hills in Nyanza,Mwananyamala at the Coast and NyambeneRidges. These are shown in Figure 3.1 across.Figure 3.1 - Location of GeothermalResource Areas in Kenya44 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
4. Geothermal power plants use steam or hot water from a natural underground reservoir togenerate electrical energy. Other uses of geothermal energy include:(a) Dairy industry - refrigeration and pasteurization of milk products;(b) Grain Silos - drying of grains (wheat & maize) and other farm products e.g. pyrethrum;(c) Space heating and cooling - green houses, residential houses, hotels and other buildings;(d) Industry - production of industrial sulphur, treatment of hides and skins and honeyprocessing, and(e) Water heating for fish and crocodile farming, and spas/swimming pool.3.2.2 Challenges1. Relatively long lead time of between 5-7 years from conception to production of electricity.2. Geothermal projects typically progress through stages of reconnaissance, surface exploration,feasibility study, exploratory drilling, appraisal drilling, production drilling, steam fielddevelopment and power plant construction stages which normally involve high upfrontinvestment costs.3. High resource development risks.4. Inadequate geothermal expertise and expensive external technology.5. Remote location, siting restrictions and long distances to existing load centres necessitatingheavy investment in transmission and other support infrastructure.6. Competing and conflicting interests in use of land and natural energy resources by varioussectors of the economy.7. Relocation and resettlement of affected persons during geothermal development.3.2.3 Policies and Strategies - Geothermal EnergyPolicies and StrategiesGeothermal Energy1. The Government shall support and fund the Geothermal DevelopmentCompany (GDC) so as to manage the geothermal exploration risk andattract investors.2. The Government will continue to support and facilitate the public sectoras well as encourage the private sector to invest in geothermalsubsector through various means including PPP and joint venturearrangements so as to achieve the projected capacity of 1,887MW by2017 and at least 5,500MW by 2030.3. The government will promote research development and disseminationand capacity building for geothermal development through provision offiscal and other incentives.Short Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-2030 4. The government shall streamline licensing and allocations of geothermal 45 3.0 – RENEWABLE ENERGY
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 and 48: 3. The introduction of clean coal t
Page 49 and 50: 6. Lack of a special purpose vehicl
Page 51: Policies and StrategiesFossil Fuels
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
Page 99 and 100: Policies and StrategiesElectricity
Page 101 and 102: 7. The energy policy and the Energy
Page 103 and 104:
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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