RURAL ELECTRIFICATION RURAL ELECTRIFICATION PROGRAMME INPROGRAMME INPROGRAMME INPROGRAMME IN

KENYAKENYA

by Zachary O. Ayieko y y

Chief Executive OfficerRural Electrification Authority

AEI Practitioners Workshop- Dakar, Senegal 2011

November 2011November 2011

OUTLINEOUTLINE1.Overview of Kenya2 Energy Sector Institutional structure2.Energy Sector Institutional structure3. Rural Electrification Authority4 Funding for Rural Electrification Programme4.Funding for Rural Electrification Programme5. Mode of Rural Electrification in Kenya6 REA/KPLC working relationship6. REA/KPLC working relationship 7. Renewable Energy in Kenya8.Challenges8.Challenges9. Factors Contributing to Accelerated Electricity Access

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1.1. OVERVIEW OF KENYAOVERVIEW OF KENYA

• Kenya is located in EastAfrica and borders Ethi i S liEthiopia, SomaliaTanzania, Uganda &SudanSudan

• Population about 40M • The national languagesg g

are English & Kiswahili

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Overview cont…..Overview cont…..Overview cont…..Overview cont…..

Kenya is well known for:• A national park within the

city and world famous &game reserves &

white beaches• Home to the big five thatHome to the big five that

include; Lion, Elephant,Buffalo, Rhino and ,Leopard

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Overview cont…..Overview cont…..

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Kenya is also famed for its long Kenya is also famed for its long y gy gdistance runnersdistance runners

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2.2. ENERGY SECTOR INSTITUTIONAL ENERGY SECTOR INSTITUTIONAL STRUCTURESTRUCTURE

Ministry of

Electricity Generation

Ministry of Energy 

ERCEnergy Tribunal

KETRACOKENGEN

Transmission & DistributionElectricity Generation

Steam Resource Development

GDC 

IMPORTS

IPPs

(kengen)

KPLC

Custom

ers

REA

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Benefits of Rural Electrification

• Rural electrification has many benefits to the rural Populacerural Populace.

• These include; empowerment of rural populationThese include; empowerment of rural populationin education, health, lighting, modern farming,fish farming, employment creation, securityenhancement, improvement in standard of living, among others.

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3. RURAL ELECTRIFICATION AUTHORITY

REA was established in 2006 through Energy Act No. 12 of 2006 and operationalised in July 2007y

Mandate: to accelerate rural electrification

Vision 2030

All citizens to have electricity by 2030

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REA STRATEGIC PLAN

• Phase I 2008-2012 - Connect all Public Facilities- Connect 1 Million Customers- Increase connectivity fromIncrease connectivity from about 12%- 22%)

- Increase access to 100%Ph II 2013 2022 C t C t (i• Phase II 2013-2022 - Connect Customers (increase

-Connectivity from 22% to 65% )

• Phase III 2022-2030 - Connect Customers (increase - Connectivity from 65% to 100% )

Note: Access means households within 1.2km of M.V/L.V line while connectivity is the actual connection to electricity.

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Public facilities electrified by June 2011Public facilities electrified by June 2011FACILITY No. OF

FACILITIES ELECTRIFIE

D FROM 1973 2003/04

NO OF FACILITIES ELETRIFIED

2003/04 -10/11

TOTALELECTRIFIE

D

TO BE ELECTRIFIED

2010/11-2012/13

TOTAL

1973- 2003/04Trading Centres 1,096 5,783 6,879 3,371 10,250

Public 285 4,163 4,448 2,478 6,926Secondary SchoolsHealth Centres 348 2,082 2,430 1,516 3,946

TOTAL 1 729 12 028 13 757 7 365 21 122TOTAL 1,729 12,028 13,757 7,365 21,122

Level of Electrification

4% 10% 18% 22%

Access level 15% 70% 100%Access level 15% 70% 100%Funds required to electrify the remaining facilities: Kshs.25billion (US$250M)Funds committed Kshs.17billion (US $170M) . Balance Kshs.8Billion (US$80M)

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4. 4. FUNDING FOR RURAL ELECTRIFICATION FUNDING FOR RURAL ELECTRIFICATION PROJECTSPROJECTSPROJECTSPROJECTS

PERIOD FUNDING KSH.MN %

1973/1974-2002/2003

2003/04-2010/11

Total

Internal sources

4,271 31,475 35,746 80

External 2 994 5 883 8 877 20External sources

2,994 5,883 8,877 20

Total 7 265 37 358 44 623Total 7,265 37,358 44,623

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Funding for Rural Electrification Cont….Funding for Rural Electrification Cont….ggMain sources:

• Internal Sources (Exchequer) - 80% • External(Development Partners) - 20%

Recent Development Partners

• World Bank• AFD• Spain

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55. . MODE OF RURAL ELECTRIFICATION IN KENYA MODE OF RURAL ELECTRIFICATION IN KENYA

REA implements RE projects thro;

Grid Extension

Off-grid supply Isolated diesel stations Installation of solar PV, Wind and

Biogas systems in public institutions

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STRATEGIES OF IMPLEMENTATIONSTRATEGIES OF IMPLEMENTATION

• Masterplan• Stakeholders involvement• Bulk Purchase of MaterialsBulk Purchase of Materials• Use of Labour and Transport Contractors

T k• Turnkey contracts• Competitive tendering

(Average cost per km for MV line US $ 10,000)

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STANDARDS / ENGINEERING SPEC USED IN STANDARDS / ENGINEERING SPEC USED IN RURAL ELECTRIFICATION PROJECTS RURAL ELECTRIFICATION PROJECTS RURAL ELECTRIFICATION PROJECTS RURAL ELECTRIFICATION PROJECTS

• A joint technical project committee of REA and KPLC members decides on theand KPLC members decides on the standards and Specs for use in electricity subsector.subsecto

• The committee reviews regularly and the standards/ Specs of the various materials/designs.

• These standards are used both by KPLC and REA to ensure uniformity in the subsectorREA to ensure uniformity in the subsector.

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6. REA/KPLC WORKING RELATIONSHIP 6. REA/KPLC WORKING RELATIONSHIP • REA hands over completed projects to KPLC for

operation and maintenance based on the Service Level Agreement (SLA).

Th j t h d d t KPLC i• The projects handed over to KPLC remain property of REA.

• REA does not pay KPLC for O&M of the projects since this is covered through the electricity retail g ytariff.

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7.RENEWABLE ENERGY SOURCES

Renewable Energy Potential  Areas

1 Geothermal 7000MWInstalled 200 MW

Rift Valley

2 Solar 4‐6 kWh/m2/day

Over 80% of land area

3 Wind 346 W/m2  Parts  of Nairobi, Eastern, North Eastern and CoastNorth Eastern and Coast 

4 Small hydro 3,000 MW Five drainage basins

5 Biomass ‐ cogeneration 300 MW Sugarcane growing belt

6 Others Biomass – Biogas,Power alcohol, biodiesel , etc

300 MW Medium and high potential areas

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PROGRAMME TO ENCOURAGE PROGRAMME TO ENCOURAGE RENEWABLE ENERGY RENEWABLE ENERGY

a) Feed in tariff Policya) Feed in tariff Policy• Geothermal• Geothermal• Wind• BiomassBiomass • Solar• Small Hydro• Biogas

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b) b) Solar EnergySolar Energy• ERC has gazetted solar water heating

regulations for use in towns residential buildingsbuildings.

• Formulating a framework to promote use f l PV i d d Bi tof solar PV, wind and Biogas systems.

• Net metering policy to encourage solar ti i b ildienergy generation in buildings

• Commercial generation of solar energyg gy

• Hybrid of diesel station with solar/wind power(ERC)p ( )

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c) Wind energy potential c) Wind energy potential ) gy p) gy p

• Two wind generating plants 5.45 MW have been installed.

• Additional 625MW wind generation projects been proposed; includes 300MW by L Turkanabeen proposed; includes 300MW by L. Turkana Wind firm

• A wind atlas with indicative data to guide ginvestors has been developed.

• 55 wind masts and data loggers to collect windifi d t h b i t ll dspecific data have been installed.

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BiogasBiogas• REA has developed two Pilot

projects on biogas exploitation in twod h l i t tsecondary schools using waste water.

• The lessons learned will be used in the• The lessons learned will be used in thepromotion of such systems in other institutions countrywide.y

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8. CHALLENGES8. CHALLENGESi)i) Inadequate FundingInadequate Funding

8. CHALLENGES8. CHALLENGES

Suggested solutions• Increased Budgetary allocations• Community participation and Public -y p p

Private partnerships• Provision of free way leaves

ii) Population Distribution in the Rural Areasii) Population Distribution in the Rural AreasSuggested solutionsLand reforms that encourage organizedLand reforms that encourage organized group settlements

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iii)iii) High connection fee High connection fee about US$ 400

Suggested SolutionsSuggested Solutions• Increased funding for extension of lines• Deferred paymentsDeferred payments• A revolving fund• Aggressive marketing

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iv) Vandalism of power line iv) Vandalism of power line – e.g. transformers

Suggested SolutionsSuggested Solutions

• Promote community participation/ownership ofPromote community participation/ownership of projects

• Placement of transformers in secure areasPlacement of transformers in secure areas

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9 9 FACTORS CONTRIBUTING TO 9. 9. FACTORS CONTRIBUTING TO ACCELERATED ELECTRICITY ACCESS

• Lead in Government Commitment• Lead in Local funding• Support from Development Partners• Establishment of committed Lead Agencies• Passion by stakeholders• Passion by stakeholders• Community involvement• Bulk purchase of materialsBulk purchase of materials• Use of labour and transport contractors• Promotion of organized settlement

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THANK YOU

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