National Energy Policy - Final Draft - 14 Nov 2013

4.5.7 Rural Electrification4.5.7.1 Background1. The Government established the Rural Electrification Authority (REA) under section 66 of theEnergy Act, No.12 of 2006 to accelerate the pace of rural electrification in the country. Theobjective was to streamline the implementation of the rural electrification programme so as tofacilitate the achievement of the aforementioned national development goals. To achieve theseobjectives, the Authority has the mandate of extending electrification services to rural areas,developing rural electrification master plans, managingthe rural electrification programme fund,mobilizing resources for rural electrification and promoting the development and use ofrenewable energy. In addition, GoK targets as set out in the Vision 2030 is to achieve 100%connectivity by 2030.2. As at June 2013 the Government through KPLC and REA had provided electricity supply to23,167 out of the existing 25,873 public facilities in the country.3. The cumulative capital expenditure since inception of Rural Electrification Programme (REP) in1973 was KShs45billion of which KShs 36billion was generated from internal sources and thebalance of KShs 9billion was from Development Partners.4. The number of customers connected under the rural electrification programme (REP) rosesignificantly to stand at 453,544 as at June 2013 from 382,631 as at June 2012. Units ofelectricity sold increased by 5million from 308million kWh in 2011/12 to million 313million kWh in2012/13.4.5.7.2 Challenges in Rural Electrification1. High costs of connection. Despite efforts to subsidize the cost of connection to between KShs17,000 KShs 35,000/-, this amount is still beyond the reach of majority of rural consumers.2. Scattered population settlements in the rural areas leading to long distribution lines. The noncontrolledsub-division of arable land has escalated this problem.3. Harsh terrains and inaccessibility due to under developed infrastructure leads to high cost ofREP Projects.4. High operating costs of grids in rural areas due to low population density.5. Acquisition of way leaves due to high compensation demand by public institutions and landowners.6. Vandalism of power infrastructure.4.5.7.3 Policies and Strategies and Implementation Plan – Rural ElectrificationPolicies and StrategiesRural ElectrificationShort Term2014-20171. Update the rural electrification master plan. Implementation PlanMedium Term2014-2022Long Term2014-203088 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013