+500MW GoK Strategy · (KETRACO) Energy Regulatory ... (KPRL) Rural Electrification New Energy...
Transcript of +500MW GoK Strategy · (KETRACO) Energy Regulatory ... (KPRL) Rural Electrification New Energy...
Republic of Kenya
EAPIC
1
POWER SECTOR
DEVELOPMENT IN KENYA
Eng. Joseph K. Njoroge, Principal
Secretary
27th August, 2015, KICC, Nairobi, KENYA
MISSION & VISION
… to facilitate provision of :
• clean,
• sustainable,
• affordable,
• competitive and
• secure energy
for national development while protecting the environment …
Mission
… affordable, competitive
quality energy for all
Kenyans …
Vision
Summary of Key Programs
1. 5000+ MW Power Generation Program
2. Transmission & Distribution infrastructure to support the
5000+MW
3. Electrification of all primary schools in Kenya to support
equal opportunities for all our Children
4. Last mile electrification strategy to reach 70% of
households by 2017 and to reach all by 2020
5. Regional power inter-connectors that include Lesso-
Tororo 400 kV line, Isinya - Arusha 400 kV line and
Kenya - Ethiopia 500 kV DC link which are all funded
6. The development of the crude oil pipeline from Lokichar
to Lamu
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KENYA ENERGY SECTOR
Petroleum
Electricity
Ministry of
Energy &
Petroleum
(responsible for
policy matters)
KenGen (74%
GoK) - (1639MW)
IPPs (572MW)
Upcoming IPPs
Generation
Transmission
(KETRACO)
Energy
Regulatory
Commission
(ERC)
(responsible
for regulating
the energy
sector)
Marketing
(NOCK)
Private)
Transportation
(KPC)
Refinery
(KPRL)
Rural
Electrification
(REA)
New Energy Bills
being enacted to
align the sector to
the New
Constitution…
Distribution
(KENYA
POWER)
Geothermal Development Company(GDC) established
in 2009 to accelerate Geothermal Resource
Assessment
Energy Tribunal
Source: Ministry of Energy, Sector LCPDP Plan 2011-2030
KENYA VISION 2030 POWER DEMAND PROJECTIONS
2 300
4 700
7 900
15 400
19 900
33 300
1 800
3 100
5 400
11 900
17 600
26 500
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Projected Capacity (MW) Peak Demand (MW)
2013 2015 2018 2023 2027 2030 2016
4,800
6,400
Focus of
GoK 40-
Month
Strategy
CURRENT GENERATION CAPACITY
Installed MW Effective MW
Hydro 820.7 797.6
Geothermal 588.0 579.9
Thermal
(MSD) 633.0 614.5
Temporary
Thermal
(HSD) 30.0 30.0
Thermal ( GT) 60.0 54.0
Wind 25.5 25.5
Cogeneration 26 21.5
Interconnect
ed System 2,183 2,123
Off grid
thermal 26.4 23.1
Off grid wind 0.55 0.55
Off grid solar 0.55 0.55
Imports 0.000 0.0
Total
Capacity MW 2,211 2,147
Hydro 37.2%
Geothermal 27.0%
Thermal (MSD) 29.7%
Temporary Thermal
1.4%
Thermal ( GT)
2.5% Wind 1.2%
Cogen. 1.0% Solar
0.0% Imports
0.0%
% (effective)
ENERGY GENERATION DISPATCH
BY SOURCE
Hydro 37.8%
Geothermal 47.8%
Diesel 13.0%
TPP's 0.5%
Cogen 0.0%
GTs 0.0%
Wind 0.4%
Solar 0.0%
Imports 0.6%
40-MONTH GOVERNMENT 5000+MW STRATEGY
NEW CAPACITY ADDITIONS (MW)
TIME IN MONTHS 6 12 18 24 30 36 40 TOTAL
Hydro 24 - - - - - - 24
Thermal 87 163 - - - - - 250
Geothermal 90 176 190 50 205 150 785 1,646
Wind - - 20 60 300 250 - 630
Coal - - - - 960 - 960 1,920
LNG - - - 700 350 - - 1,050
Co-Generation - - 18 - - - - 18
Total 201 339 228 810 1,815 400 1,745
Cumulative
Additions 201
540
768 1,578
3,393 3,793 5,538
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TARGET TARIFF PROGRESSION
1664
2342
5017
6762
14.14
12.49
11.03
9.03
9.00
19.78
17.73
13.46
11.19 10.43
-
5
10
15
20
25
0
1000
2000
3000
4000
5000
6000
7000
8000
0 6 12 18 24 30 36 40
Tarif
f P
ro
gressio
n
(U
SCts
/kW
h)
Cu
mu
lati
ve I
nsta
lled
Cap
acit
y (
MW
)
Month
Cumulative Capacity (MW) Industrial/Commercial tariff (US¢/kWh) Domestic Tariff (US¢/kWh)
37% reduction Industrial tariff
47% reduction Domestic tariff
Means of Developing Projects
Under Least Cost Power Development Plan(LCPDP)
Under PPP framework- competitive or privately initiated investment proposals
Under Feed-in Tariffs Policy (FiT)
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Geothermal Resources in Kenya
• Suswa, • Longonot, • Olkaria, • Eburru, • Menengai, • Arus-Bogoria, • Lake Baringo, • Korosi, • Paka, • Lake Magadi, • Badlands, • Silali, • Emuruangogolak, • Namarunu • Barrier • Mwananyamala • Homa Hills • Nyambene Ridges • Chyulu Hills
Suswa, Longonot, Olkaria, Eburru, Menengai, Arus-Bogoria, Lake Baringo, Korosi, Paka, Lake Magadi, Badlands, Silali, Emuruangogolak, Namarunu Barrier Mwananyamala Homa Hills Nyambene Ridges Chyulu Hills
5000+MW GEOTHERMAL OPPORTUNITIES
Block Project Capacity
(MW) Status
Olkaria
Field
Olkaria I Unit 6 70 Financing ongoing, then EPC
Tendering
Olkaria V 140 Financing ongoing, then EPC
Tendering
Olkaria VI 140 JV Partnership procurement
ongoing
Menengai
Field
Menengai II 60 Steam Gathering System
Menengai III 100 Steam Gathering System
Menengai IV 100 Steam Gathering System
Menengai V 100 Steam Gathering System
Suswa and
Baringo-
Silali Field
Suswa 150 Steam Gathering System
Baringo-Silali 200 Steam Gathering System
1060
Renewable Energy Projects
• Generation of projects under Feed-in Tariffs
• Standard PPAs and Connection Guidelines prepared
• GoK facilitating investors with resource assessment
• Wind data logging on-going, to install 100 metre mast in high potential areas for pre-investment data
• National atlas on small hydro almost ready 13
Jan 2013 14
Feed-in-Tariff (FiT) Policy • Instrument to promote generation of electricity
from Renewable Energy sources
• FiT Policy established in April 2008 and reviewed in Jan 2010, and Dec 2012
• Reviews to accommodate new technologies, as well as changes in cost of equipments and money
• Model PPA and Connection guidelines also done
• Exploring the implementation of Energy Auctions
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TRANSMISSION LINES • Various Transmission lines: Regional
Interconnectors; to Evacuate the 5000+ MW; Extend the Grid; or Strengthen the Grid Network
• Participation in several ways:
• Engineering, Procurement & Construction (EPC) contractors
• Engineering, Procurement & Construction + Financing (EPC+F) contracts
• Consultancy Services
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RAPID CUSTOMER CONNECTIVITY
2020:
Universal Access
2017: 70% Access
2015: 3.6 million customers
2014: 2.77 million customers
2013
2.33 million customers
41%
Access
37%
Access
29%
Access
Last Mile Connectivity Project
• Programme entails extending low voltage power lines to areas close to customers for ease of connection.
• This is expected to lead to accelerated enhancement of connectivity in a very short period.
• Successful implementation will result in connectivity increasing from the current 41% to between 70% in the next five years
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Last Mile Connectivity Project......(2)
• It is estimated to cost US$ 1 billion
• Development partners have so far committed:
– AfDB USD 150 million
– World Bank USD 150 million
– AFD Euro 70 million
• Reaching out to other Development Partners-DANIDA, JICA, EIB, KfW
• Implementation by KPLC and REA
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Hybrid System
• Commenced installing solar/wind hybrid systems at off-grid power stations to reduce fuel costs
• Solar hybrids at Lodwar(60kW), Hola (60kW), Merti (10kW), Elwak (50kW) and Mandera (300KW)
• Wind hybrids at Marsabit(500kW) • Solar/Wind hybrid at Habaswein (50kW wind, 30kW
solar) • Solar hybrids in Takaba and Rhamu for 50kW plants • To do more, with funds from GoK, AFD, World Bank,
Nordic Development Fund, KfW, other partners
Conclusion
• Favourable policy and regulatory frameworks for energy provision
• GoK is committed to increasing access to modern energy, and will use Renewable Energy solutions as much as possible
• Development partners and the Private Sector are key partners in energy provision, and as such are Encouraged and Facilitated to participate in energy sector in Kenya
THANK YOU …