National Energy Policy - Final Draft - 14 Nov 2013

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month period so as to unlock over KShs 800 billion of new investment in power generation bythe private sector. The developers of these power plants will be expected to negotiate andexecute power purchase agreements with KPLC which shall remain the single buyer during theproject period.4.3.3 Generation from Renewable Energy ResourcesGeneration of electrical energy using renewable energy resources is dealt with in Chapter 3.4.3.4 Generation of Electricity using Fossil Fuels4.3.4.1 Background1. Thermal power plants generate electrical energy using fossil fuels, mainly, petroleum, naturalgas and coal.2. Thermal generation accounts for approximately 34.7% of installed capacity and its contributionto the actual energy mix as at June 2013 stood at approximately 37%. The installed capacity onthe interconnected system comprises:(a) 452MW of medium speed diesel (MSD) generators.(b) 60MW of gas turbines.(c) 30MW emergency power plant at Muhoroni for voltage support in Western Kenya.3. All thermal generating plants are run on imported petroleum fuels which are subject to volatileinternational oil market prices which are passed through to consumers. Consumption ofpetroleum is projected progressively reduce and be replaced natural gas.4.3.4.2 Advantages1. Thermal power generation:(a) Requires a relatively shorter period of between 12 to 18 months.(b) Requires smaller physical space compared to hydro and geothermal power plants.(c) Lower capital cost compared to hydro power and geothermal power plants.(d) Can be installed in any part of the country as compared to hydro power and geothermalplants which are site specific.(e) Attractive to private investment due to faster return on investment.4.3.4.3 Challenges(a) High recurrent cost due to use of petroleum fuel leading to higher electricity costs.(b) Petroleum fuel is not renewable.(c) Causes environmental pollution which requires costly mitigation measures.(d) Kenya imports all her petroleum products which are subject to high price volatility.76 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013
(e) Thermal power plants have a relatively shorter life span of about 20 to 25 years comparedto hydropower plants which have a lifespan of over 50 years.(f) Thermal power has relatively lower conversion efficiency of less than 50% compared tohydropower plants which have over 90% efficiency.4.3.4.4 Policies and Strategies and Implementation Plan – Electric Power GenerationPolicies and StrategiesElectric Power Generation1. The Government will provide fiscal incentive on petroleum products, coaland natural gas imported for use in thermal electricity generation.2. The Government will encourage electricity generation using indigenousfossil fuels primarily natural gas and coal including facilitating PPPs.Short Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-2030 3. The Government will ensure that all equipment procured for thermalpower plants shall be designed and constructed to minimise theenvironmental impact while giving consideration to visual impact, wildlifeand temporary disturbance during construction, maintenance andoperation.4. Implement committed power generation projects in order to attain anadditional capacity of at least 5,000MW by 2016 which include two coalplants of up to 1,000MW each in Lamu and Kitui counties and naturalgas fired power plants of up to 1,050MW.5. The Government shall promote the utilisation of Combined Cycle GasTurbine (CCGT) plants to increase efficiency.6. Regulator to develop appropriate standards and mechanisms forconsumer protection including but not limited to reliable, and stable,power supply includes repair and maintenance time lines. The regimeshould include penalties. 7. Establish natural gas handling and storage facilities in the country. 8. Enforce compliance for pollution prevention and reduction in thermalpower plants.9. Promote bagasse based cogeneration and implement the identifiedprojects based on least cost and efficiency criteria. 4.3.5 Generation of Electricity using Nuclear Energy4.3.5.1 Background1. The uptake of nuclear power technology has been growing over time across different countriesand regions. Various countries without existing nuclear power technology in their powersystems have expressed interest in investing in nuclear electricity production, while developedcountries with existing nuclear plants have been expanding their capacities. All over the world,77 4.0 – ELECTRICITY
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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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fund, mobilizing resources for rura
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2.0 - FOSSIL FUELS2.1 BACKGROUND1.
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immense value through acquisition o
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and averaging at more than US$110 p
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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
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: Figure 4.2 - Evolution of the Energ
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
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
Page 119 and 120: 6 It is a further requirement under
Page 121 and 122: Policies and StrategiesAccess to En
Page 123 and 124: Kenya.Policies and StrategiesEnergy
Page 125 and 126: 15. Seek financing of clean energy
Page 127 and 128: Figure 8.1 - Pass-Through Costs in
Page 129 and 130: Table 8.1 - Energy Tariffs and Cost
Page 131 and 132: Policies and StrategiesEnergy Prici
Page 133 and 134: 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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