National Energy Policy - Final Draft - 14 Nov 2013

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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 Outdated or lack of land use master plans which have made it difficult and expensive to acquireland and way-leaves for power infrastructure development.3.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
Policies and StrategiesElectricity Cross Cutting Issues6. NERC shall ensure that during the energy contracting process, regulatedasset base composition, return on equity for energy entities and theprocess of electricity tariff design is properly defined, scheduled,documented and provided for in regulations formulated under the EnergyAct so as to also cater for the urban poor and marginalized groups.7. The Government will encourage incorporation of clean developmentmechanisms in energy projects so as to benefit from carbon creditsunder the 1997 Kyoto Protocol or any successor mechanism.8. The government shall take adequate measures including introduction ofsanctions to ensure that licensees supply quality power.9. Power generators shall, in consultation with distribution and transmissionlicensees, construct or cause the construction of supply lines to cater forthe needs of the local community in their areas of operation.10. Institute appropriate and innovative ways to enhance surveillance andsecurity of energy infrastructure.11. Create awareness on the benefits resulting from development of cleanenergy technologies.12. The Cabinet Secretary will liaise with the relevant government agenciesto provide for efficient dispute resolution mechanisms in the energysector.Short Term2014-201713. Enhance financial resources mobilisation and efficiency. Implementation PlanMedium Term2014-2022Long Term2014-203014. Concession government owned off-grid (isolated) power stations withinthe framework of the Privatisation Act.15. Where commercially viable, progressively connect off-grid systems tothe national grid.16. Provide incentives for local assembly and manufacture of energyinfrastructure equipment.91 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
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3. The prices in Kenya as published
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6. It is hoped that the discovery o
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(c) High sulphur levels have advers
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Policies and StrategiesPetroleum Ex
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Policies and StrategiesPetroleum Su
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plants has several advantages over
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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 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-
Page 93 and 94: to this worsening situation leading
Page 95 and 96: 4.5.5 Policies and Strategies and I
Page 97: Policies and StrategiesRural Electr
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
Page 135 and 136: 3. In 2009, ERC established a commi
Page 137 and 138: 9.3.3 Policies and Strategies and I
Page 139 and 140: 9.7 ENERGY RESOURCES BENEFITS SHARI
Page 141 and 142: 10.0 - ANNEXURESAnnex 10.1 The PSC
Page 143: Table 10.3 Nuclear electricity gene
Page 146 and 147: 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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