National Energy Policy - Final Draft - 14 Nov 2013

2. Outdated or lack of land use master plans which have made it difficult and expensive to acquireland and way-leaves for power infrastructure development.3. The policy and decision making processes in public energy sector players are complicated bytheir corporate governance structures which are influenced by government policy, boardappointments, existing laws and regulations.4. High cost of financing energy infrastructure projects.5. Insufficient fiscal and other incentives for private sector investment.6. Lack of adequate port facilities for handling cheaper energy resources including coal and naturalgas to support power generation.7. The restructuring of the sector creates challenges due to existing obligations including PowerPurchase Agreements (PPAs), financial covenants and asset ownership.8. Demand for power in some areas is low due to lack of economic activities as well as poorinfrastructure rendering some of the electrification projects unsustainable.4.6.2 Policies and Strategies and Implementation Plan – Electricity Cross Cutting IssuesPolicies and StrategiesElectricity Cross Cutting Issues1. Put in place mechanisms to ensure that the local communities benefitfrom developments of the electricity supply infrastructure.2. The Government shall:(a) provide funds for pre-feasibility and feasibility studies for energyprojects.(b) ensure that integrated plans for the electricity supply system areprepared including the Least Cost Power Development Plan(LCPDP).(c) where necessary acquire land and wayleaves for energyinfrastructure development.(d) develop a resettlement action plan framework policy for energyrelated projects.3. The National Government shall enact or amend laws that enhancepenalties for existing offences affecting the sector and provide foradditional offences while also classifying these offences as economiccrimes.4. The Government shall determine levies charged by CountyGovernments, urban areas and cities on power infrastructure asprovided under Article 209 (5) of the Constitution.5. The Government will provide fiscal incentives to encourage investors toacquire and develop energy development technologies.Short Term2014-2017Implementation PlanMedium Term2014-2022Long Term2014-203090 NATIONAL ENERGY POLICY FINAL DRAFT NOVEMBER 2013