Emerging Opportunities in Kenya’s Energy Sector

Presented by Agnes ObaraChief Planning Officer, Regional Planning

FRANCE-KENYA ENERGY WORKSHOPNairobi 27th September 2016

Outline 1. Power Sector Structure

2. Key Statistics

3. Strategic Themes 2016 to 2021

4. Continuing Projects

5. Opportunities

3

Business model –Power Sector Structure

Ministry of Energy

& Petroleum

ERC

Energy Tribunal

KenGen ImportsIPPs REA

GDC –steam resource development

KETRACO – Transmission

Kenya Power –Off-taker/Transmission/ Distribution/Supply

Customers

Role of Kenya Power Mandate

A. Purchasing bulk electricity supply,

B. Transmitting electricity

C. Distributing and retailing electricity to end use customers throughout Kenya

D. Collaboration in implementation of R.E Programme

5

Key Statistics

STATISTIC Sept. 2016

Installed capacity MW 2,303Effective Capacity MW 2,234Effective Interconnected Capacity MW 2,282Peak Demand MW 1,618Reserve Margin-grid 29.7%Energy Purchased 2015/16 (GWh) 9,817Number of Customer accounts (million) 5

Electricity Access 56.8%

Transmission and Distribution Lines, Circuit Length in Kilometers (11-220 kV) 68,446

6

Capacity Mix

Installed

MWEffective

MW%

(effective)Hydro 820.7 799.5 35.8%Geothermal 632.0 624.0 27.9%Thermal (MSD) 716.3 690.1 30.9%Temporary Thermal -grid 0.0 0.0 0%Thermal ( GT) 60.0 55.0 2.5%Wind 25.5 25.5 1.1%Cogeneration 28 23.5 1.1%Interconnected System 2,283 2,218 99.3%Off grid thermal 19.7 15.7 0.7%Off grid wind 0.55 0.17 0.0%Off grid solar 0.640 0.512 0.0%Imports 0 0 0.0%Total Capacity MW 2,303 2,234 100.0%

Installed Capacity (MW)

Hydro35.6%

Geothermal27.4%

Thermal34.6%

Wind1.1%

Biomass1.2%

Solar 0.03%

Installed Capacity (MW)

7

Generation Mix in Aug 2016

Hydro42.4%

Geothermal40.2%

Diesel16.1%

Biomass0.01%

Wind 0.4%

Solar0.01% Imports

0.8%

Strategic Themes 2016 - 2021

Network Management

Customer Centricity Loss Reduction

Resource Alignment

Accelerated Customer Connections

• Over 2.7million customers have been connected between July 2012 and June 2016 accounting for 59% of total customers

• Total customer accounts currently- 5,002,029 customers, Aug 2016

2010/11 2011/12 2012/13 2013/14 2014/15 2015/160

400,000

800,000

1,200,000

1,600,000

289,979 285,277 292,337 437,021

843,921

1,278,469

New Customer Connections

10

Enhancing System Efficiency

• Outdoor /Smart Metering Project• Distribution System Automation and

SCADA Upgrade • GIS/ FDB project implementation –

mapping the entire network • Prepaid Metering• Split metering - GPOBA project

11

Continuing projects

Continue with construction of new Kenya Electricity Expansion Projects

Undergrounding Networks in key urban areas

Automation of Distribution network

System Refurbishment works

12

Continuing projects…

Sustain accelerated connectivity – Last Mile project, GPOBA project, Street lighting and others

Implementation of 252 new substations and associated lines countrywide

Completion of key transmission projects including regional interconnectors to Ethiopia, Uganda and Tanzania

13

Opportunities

• Electricity Generation– IPP –open tenders for identified

capacity need

– Feed in Tariffs (FiT) Policy for renewable projects and negotiate PPAs with Kenya Power

– Financing projects – lenders, development partners

– Partnerships in mini grid development and feasibility studies

14

Opportunities cont…

• Electricity Transmission – Planning – Design – Construction Contracts– Supervision – Supply of goods and services

15

Opportunities cont…

– Planning

– Design and Construction of lines and

sub-stations

– Financing for MV extensions to increase

access rates

– Supply of goods and services

– Supervision

– Automation

– Metering

– Asset management

Electricity Distribution

Thank you