National Energy Policy - Final Draft - 14 Nov 2013

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Policies and StrategiesBiomass CogenerationShort Term2014-201714. Prepare integrated solid waste management plans and roadmaps. Implementation PlanMedium Term2014-2022Long Term2014-203015. Government to enter into PPP arrangements with the private sector entitiesto accelerate co-generation to realise at least 200MW by 2017.16. Develop criteria for certification schemes for cogeneration projects. 17. Undertake Pilot programmes to generate at least 50MW of electricity usingmunicipal/industrial solid waste by 2017, 100MW by 2022 and 300MW by2030.18. Facilitate 800MW of co-generation capacity from bagasse and agroresiduesby 2022 and 1,200MW by 2030. 3.11 FEED IN TARIFFS3.11.1 Background1. A FiT is an instrument of promoting electricity generation from renewable energy sources. Itenables power producers to generate and sell Renewable Energy Sources Generated Electricity(RES-E) to a distributor at a pre-determined fixed tariff for a given period of time.2. The objectives of the FiT Policy are to:(a) Facilitate resource mobilization by providing investment security and market stability forinvestors in electricity generation from Renewable Energy Sources.(b) Reduce transaction and administrative costs and delays by eliminating the conventionalbidding process and lengthy negotiations of PPA.(c) Encourage private sector investors to operate their plants prudently and efficiently so as tomaximize returns.3. The FiT Policy was launched in April 2008 and applied to three technologies namely wind, smallhydro power and biomass (municipal waste and cane bagasse). Since then, submissions frompotential investors point to generation tariffs higher than the FiTs due to increases in the cost ofgeneration equipment and financing. To attract private sector investment, a realistic review ofthe tariffs has to be undertaken, while also widening the scope to cover other renewable energysources.4. As at 2012 a number of investors had expressed interest to develop projects under the FiTpolicy as follows:(a) 20 small hydropower projects with total capacity of 84MW.(b) 23 wind power projects with total capacity of 1327MW.(c) 6 biomass energy projects with total capacity of 270MW.66 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
(d) 1 sea wave energy projects with total capacity of 100MW.5. The existing FiT structure for each technology is as shown in the Table 3.2:3.11.2 Challenges1. Insufficient data and analytical tools to inform the level of tariffs for different technologies.2. Lack of awareness on FiT among the potential investors.3. No clear guidelines on PPA negotiations which results in lengthy negotiations.4. Inadequate technical and financial capacity of some community based projects.Table 3.2 (a): Feed-in-Tariff Structure for projects upto 10MWTechnologyInstalledCapacity (MW)Standard FiT(US$/kWhr)Percentage escalableportion of the tariffMin. Capacity(MW)Wind 0.5-10 0.11 12 0.5 10Hydro 0.5 0.105 8 0.5 1010 0.0825Biomass 0.5-10 0.10 15 0.5 10Biogas 0.2-10 0.10 15 0.2 10Solar (Grid) 0.5-10 0.12 8 0.5 10Solar (Off-Grid) 0.5-10 0.20 8 0.5 10Max. Capacity(MW)Table 3.2 (b): Feed-in-Tariff Structure for projects above 10MWTechnologyInstalledCapacity(MW)StandardFiT(US$/kWhr)Percentageescalable portionof the tariffMin.Capacity(MW)Max.Capacity(MW)Wind 10.1-50 0.11 12 10.1 50 500Max.CumulativeCapacity (MW)Geothermal 35-70 0.088 20 for first 12years and 15 after35 70 500Hydro 10.1-20 0.0825 8 10.1 20 200Biomass 10.1-40 0.10 15 10.1 40 200Solar (Grid) 10.1-40 0.12 12 10.1 40 10067 3.0 – RENEWABLE ENERGY
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NOVEMBER 2013 DRAFTREPUBLIC OF KENY
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2.4.4.1 Challenges in Coal explorat
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4.5.5 Policies and Strategies and I
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Table 10.1 Energy Generation Potent
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FOREWORD BY THE CABINET SECRETARY F
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EXECUTIVE SUMMARY1. This policy doc
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14. To enhance exploitation of the
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24. The Government shall establish
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1.0 - INTRODUCTION1.1 THE ROLE OF E
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(k) Promote appropriate standards,
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(e) The Weights and Measures Act, C
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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 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
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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-
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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
Page 105 and 106: 6.2.3 Renewable Energy1. Generally,
Page 107 and 108: causes indoor air pollution leading
Page 109 and 110: 6.5 DISASTER PREPAREDNESS AND MITIG
Page 111 and 112: from the licensee.Policies and Stra
Page 113 and 114: Policies and StrategiesEnvironment,
Page 115 and 116: 6.7.4.4 Nuclear ElectricityPolicies
Page 117 and 118: of the risk levels.Policies and Str
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Page 121 and 122: Policies and StrategiesAccess to En
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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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