National Energy Policy - Final Draft - 14 Nov 2013

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VISIONAffordable Quality Energy for AllKenyansMISSIONTo Facilitate Provision of Clean,Sustainable, Affordable, Reliable andSecure Energy Services at Least Costwhile Protecting the Environmentviii NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
FOREWORD BY THE CABINET SECRETARY FOR ENERGY AND PETROLEUMThis Sessional Paper sets out the national policies and strategies for the energy sector that arealigned to the new Constitution and are in tandem with the Vision 2030.Kenya Vision 2030 (the Vision) is a long-term development blueprint which aims at transforming thecountry into a globally competitive, newly industrialized, middle income and prosperous country.The Vision seeks to ensure a high quality of life to all citizens in a clean and secure environment by2030. The objectives of the Vision have been adopted as GoK’s national development objectives.The Vision has identified Short, Medium and Long-term strategies aimed at transforming the socialand economic well-being of its citizens. Among the Short-term strategies was the enactment of aNew Constitution. The Constitution of Kenya, 2010 has drastically and substantially altered thegovernance structure of the country. It has also enhanced participation by the citizens in decisionmaking processes. This has necessitated the need to review the energy sector framework in orderto align it with the new constitutional dispensation.The overall national development objectives of the Government of Kenya are accelerated economicgrowth; increasing productivity of all sectors; equitable distribution of national income; povertyalleviation through improved access to basic needs; enhanced agricultural production;industrialisation; accelerated employment creation and improved rural-urban balance. The extent towhich these objectives can be realised on a sustainable basis and environmentally sound manner,is dependent on the degree and economic efficiency with which critical factors of production aremade available and combined with each other to produce the desired results. The realisation ofthese objectives is only feasible if quality energy services are availed in a sustainable, cost effectiveand affordable manner to all sectors of the economy ranging from manufacturing, services, mining,and agriculture to households.We submit these policy recommendations with optimism. The tasks ahead are great but achievable.To meet our energy challenge we must put to good use the resources around us and the talentswithin us.I call upon all energy sector players both in public and private sectors to work together to ensurethat the proposals contained in this policy are achieved. I also direct that an appropriate mechanismbe set to monitor and evaluate the implementation process so as to ensure that the gains in thispolicy benefit all Kenyans.Hon. Davis ChirchirCabinet SecretaryMinistry of Energy and Petroleum1 FOREWORD BY THE CABINET SECRETARY FOR ENERGY AND PETROLEUM
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: Table 10.1 Energy Generation Potent
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 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
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(d) Competing interests between dev
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3.4.2 Challenges1. Unsustainable us
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4. Land will need to be set aside f
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Limited in Kilifi County generates
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high temperatures estimated at 4-6
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Policies and StrategiesSolar Energy
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3. Inadequate wind regime data.4. L
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through co-generation and bioethano
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(d) 1 sea wave energy projects with
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3.12.3 Policies and Strategies and
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4.0 - ELECTRICITY4.1 BACKGROUND1. E
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2. It is estimated that as at 2013,
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Figure 4.2 - Evolution of the Energ
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(e) Thermal power plants have a rel
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6. Nuclear fuel can be recycled and
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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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