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ElectricitySectorMatrix

Country:Kenya

Topic

Explanation

ReferencesandRemarks

ElectricitySectorPolicy
ElectricityAct(name,year)

ElectricitySectorunbundled(yes/no),since
when?

Regulationoftheelectricitysector;mandate;
organization,autonomystatus

Masterplans/LeastCostPowerDevelopment
Plans/capacityexpansionplan

ElectricPowerActof1997.EnergyActof2006.AnewEnergy
BillhasbeendraftedinDecember2013.

Unbundlingtookplacetookplacein1998,withKenyaPower
andLightCompany(KPLC)maintainingresponsibilityfor
transmissionanddistribution,whileKenyaElectricity
GeneratingCompany(KenGen),establishedin1997,tookover
allthegenerationactivitiesthatKPLChadpreviouslymanaged.
Botharepartlystateowned(parastatal)entities,whichstill
remainthedominantmarketplayers.Afurtherstateowned
transmissioncompany(KETRACO)fornewlineswas
establishedinDecember2008.KPLCretainedandcontinuesto
operateallpreviouslyexistingtransmissionsystems.

ElectricityRegulatoryBoardbecamefunctionalin1998.
ReplacedbyEnergyRegulatoryCommission(ERC)inJuly
2007.Regulatesthewholeenergysector,preparesindicative
nationalenergyplans,collectsandmaintainsenergydata,
protectsinterestsofconsumersandinvestors,maintainsalist
ofaccreditedenergyauditorsandsetstariffs,facilitatesthe
useofrenewableenergy,e.g.throughafeedinpolicy,and
issueslicensesforelectricitygenerationanddistribution.

NationalEnergyPolicyof2004includedanactionplanfor
period20042007thatcommittedthegovernmenttoestablish
aruralelectrificationauthority,tofacilitateacompetitive

TheEnergyAct,2006
TheEnergyBill,2013

www.erc.go.ke

ElectricitySectorMatrix
Topic

Explanation
electricitymarket,establishtheGeothermalDevelopment
Company(GDC),dissolvetheERBandcreateanewenergy
sectorregulator,increasetheruralelectrificationrateby10%
perannumandpartiallyprivatizeKenGen.

Gokwantstodiversifyelectricitygenerationandislookinginto
expansionofgeothermal,wind,coalandotherfossilfuel
sources,aswellasnuclearpower.

ALeastCostPowerDevelopmentPlan20112031hasbeen
developed,showingasignificantincreaseinpeakdemandand
plannedgenerationoverthe20yearperiod.

5000+MWby2016project:Kenyawantstoraisethe
generationcapacitybyatleast5,000MWfromthecurrent
1,664MWtoslightlyover6,700MWby2016,reducingatthe
sametimegenerationcostsandendusertariffs.Capacity
shouldmainlycomefromGeothermal,NaturalGas,Windand
CoalthroughIPPs.

Kenyasuspendedissuingnewlicensesforwindfarmsand
solarplantsuntil2017attheendof2013andprioritizes
developmentofcheaperfuelbasedsourcesandgeothermal
energytohelpcutelectricityprices.Windandsolarare
supposedtocontributeamaximumof15%ofnewsupplies;
projectsalreadyunderwayhavefilledthatquota.

AnnewNationalEnergyPolicywaspresentedinNovember
2013.

ReferencesandRemarks

ElectricitySectorMatrix
Topic

Gridexpansionplans

IPPsallowed/operating?

REelectricitysharetargets

PowerPurchaseAgreements;Feedintariffs

Explanation

ReferencesandRemarks

KenGeniscommittedtoincreaseitsinstalledcapacityto3,000
MWby2018.

KETRACOwassupposedtoconstructover4,000kmofHV
transmissionlinesinthefirst34yearsofoperation.Farless
hasbeencompletedsofar.ByMarch2013,atotallengthof
428kmHVlineshadbeencommissioned.

Allnewprojectsforpowertransmissioninfrastructurearefully KPLC,StrategicPlan2010/11
fundedbytheGoKwithnocapitalrelatedexpensespassedon 2014/15
totheconsumers.

Distributionlinesareconsideredtobeextendedsignificantly
fromcurrentlyabout31,145kmto119,000kmby2020.

FirstIPPpowerplantswerecommissionedin1997.Additional
emergencythermalgenerationwasdeployedin2000,butled

toconsiderablepriceincreaseforelectricity.

RepublicofKenya,Scalingup
Noinformationyet.Differenttargetshavebeennamedinthe
RenewableEnergyProgram(SREP)
samesourceforgeothermalelectricity:400MWby2015,
InvestmentPlanforKenya,Draft
1,600MWby2016,5,000MWby2030.
2011
FeedintariffswerefirstestablishedinMarch2008.The
MinistryofEnergy,Feedintariffs
currentFiTpolicyversionwaspublishedinDecember2012.
policyonwind,biomass,small
FiTscoverwind,biomass,smallhydro,geothermal,biogasand
hydro,geothermal,biogasand
solarresources.FiTsapplyfor20yearsfromthedateofthe
solarresourcegenerated
firstcommissioningoftheREplantandrangefrom0.11
electricity,2ndrevisionDecember
US$/kWhforwindpowerupto0.20US$/kWhforoffgridsolar
2012
projects.

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

Astandardized,technologyneutralPowerPurchase
Agreement(PPA)forREelectricitygenerationprojectsofupto
10MWhasbeendeveloped.Forlargescaleproducers(>10
MW)adifferentstandardPPAapplies.Thoseprojectsarealso
subjecttodispatchinstructionsbythesystemoperator.

KPLCisobligedtobuyallpowergeneratedbywindandsolar
projectsthathavereceivedaPPA.
Wheelingpolicy

Noinformationyet.

Futuresectorreform

Noinformationyet.

Utilities
GENERATION

Mainutilities(s=stateowned;p=private;
m=mixed),shareholders

KenGen(s)accountsforcloseto80%ofgeneration(=1,239
MWattheendof2013),thebalancebeingprovidedbyseven
IPPs,amongthose:
IberafricaPower(EA)LtdpoperatingHFOmedium
speeddieselgeneratorswith56MW
www.kengen.co.ke
TsavoPowerCompanyLtdpoperatingHFO

mediumspeeddieselgeneratorswith75MW
KenGen,AnnualReport2013
OrPower4Incpgeothermalplantwith13MW
MumiasSugarCompanyLtdpbagasse
cogeneration,10MWforinternalconsumption,25
MWforexport

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

RabaiPowerLtdpoperatingHFOmediumspeed
dieselgeneratorswith90MW,sinceOctober2009
under20yearPPAandasBOOTproject.

KenGengenerationmix(endof2013):
Hydro820MW(14plants)
Thermal256MW(5plants)
Geothermal158MW(4plants)
Wind5MW(1plant)

Olkaria280MWgeothermalwillbecompletedinmid2014
andraiseKenGenselectricalcapacitybyabout25%.
Generation(GWhproducedinyear.)

8,087GWhin2012/13.

Generationtype(coal,hydro,wind)and
capacitiesofmainutilities(MW)

TotalinstalledcapacityasofJune2013:about1.7GW,KenGen
accountsforapprox..76%oftheinstalledcapacity.

Hydro820MW
Thermal542MW(includes120MWoftemporarypowerand
about14MWoffgridthermal)
Geothermal205MW

WindandBagasse31MW(includes26MWbagasse)

Installedcapacityontheinterconnectedsystemcomprises:
425MWofmediumspeeddieselgenerators
60MWgasturbines
30MWemergencypowerplant
Allthoseplantsoperateonimportedpetroleumfuels.

ElectricitySectorMatrix
Topic

Generationbyfuelsource(GWh)inyear

Explanation
Hydropowerpotentialhasbeenmainlyexploited.Growing
importanceofgeothermalelectricity.

GoKhasalreadyapprovedwindfarmswithacombined630
MW,includingtheplanned300MWLakeTurkanaproject,and
solarplantsthatwillprovideanother200MW.

ThesmallwindfarminNgongnearNairobi(5.1MW,since
2010)willbeupgradedto25.5MWbyKenGen,tobe
commissionedinMarchandSeptember2014.Anotherwind
farmof300MWatLakeTurkanaisunderpreparation.

Almost55%fromhydropowerin2010,buthugeyeartoyear
variationduetoseveredroughts.

InFY2012/13,74.5%ofelectricitycamefromREsources,
whilethebalancegeneratedbyfossilfuels.

Indetail:
Hydropower 4,299GWh 53.1%
Geothermal 1,599GWh19.8%

Bagasse 71GWh 0.9%


Wind 14GWh 0.2%(Ngongwindfarm)
Imports 42GWh 0.5%
Fossilfuels2,061GWh 25.5%

KenGenhassoldin20136,022GWhtoKPCL,ofthose
Hydropower4,347GWh
Geothermal1,102GWh
Thermal559GWh
Wind14GWh

ReferencesandRemarks

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

TotalrevenueofKenGenin2013:KeS17,722million.

Peakload(MW)inyear

Peakdemandwas1,345MWin2012/13.

TRANSMISSION

Utility(ies)

LengthandcapacityofHVlines

Electricitytrade(export/import)

KenyaPowerandLightingCompany(KPLC),parastatal
companywithGoKbeingthelargestshareholder.Companyis
subjecttotheStateCorporationsActof2009,whichgoverns
stateownedenterprisesinKenya.KPLCisowningand
operatingthestockof132kVand220kVtransmissionlines
thatwasexistingbeforeKETRACOstartedoperation.
www.ketraco.co.ke

KenyaElectricityTransmissionCompany(KETRACO),was
establishedbyGoKinlate2008toconstruct,operateand
maintainnew,publiclyfunded,HVtransmissionnetworks.

1,331kmof220kVand2,436kmof132kVlines,
interconnectedwithUgandaandTanzania.

KETRACOisworkingwithregionalpowerutilitiestofasttrack
interconnectivityinordertoaccesscheaperelectricitysupply
throughregionalpowertrade.

Kenyawantstoimport300MWelectricityfromEthiopiafrom
2016on.Theexacttimelinewilldependontherealizationofa
1,000kmHVtransmissionconnection.

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

DISTRIBUTION
Utilities

KenyaPowerandLightingCompany(KPLC).
OtherassetsownedbyGoKandREA.

LengthofMVandLVlines

1,097kmof66kVlines,16,136kmof33kVlines,28,818kmof

11kVlines(30thJune2013).

Developmentofongridcustomerbase

2.33millioninJune2013(against735,000in2004/05)

SalesinGWhandlocalcurrencyinyear(per
6,581GWhin2012/13.
consumeroftariffsector)

Demandforecastnationalgrid(MW)

www.kplc.co.ke

Currentdemandislowwithonly148kWhannuallypercapita.
Plannedgenerationcapacityisexpectedtoreach5,000MWby
2020.
RepublicofKenya,LeastCost

PowerDevelopmentPlan2011
Futuredemandincreaseofmorethan10%/aexpected.
2031,March2011

Peakloadprojectedtogrowto3,400MWby2015and18,000
MWby2030.

Tariffs/costcoverage/subsidies

Electricitytariffs

TheschedulefortariffsofelectricitysuppliedbyKPLCtook
effectinJuly2008.Itcontainsavariablefuelcostchargeandis
validforallelectricitysuppliedfromtheinterconnectedgridor
inoffgridareaswithKPLCsupply.
Tariffneedstobeverified.

January2014:15.06KeS/kWhfordomesticcustomers,22.60
KeS/kWhforsmallcommercialcustomers.

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

Lifelinetariffsinplace

2.00KeS/kWhforfirst50kWh.

Tariffscostcovering?Tariffincreasesplanned?

Noinformationyet.Tariffisconstantlyadaptedtofuelcost
fluctuations.

Levelandsourceofsubsidies

Noinformationyet.

Financialsituationofmainutilities

Noinformationyet.

Performance:Losses/efficiencies/servicereliability
Generationefficiency

Noinformationyet.

Transmissionlosses,trendsandtargets

Transmissionlossesareintherangeof3.5%,nofurther
reductiontargetknown.

Distributionlosses(technical/nontechnical

Technicaldistributionlossesareintherangeof11%,non
technicallossesabout2.5%.Nofurtherreductiontarget
known.

Noncharged/paidrevenues

Noinformationyet.

Averagehoursofblackouts,targetsforimproved
Noinformationyet.
performance

Energyaccessandoffgridelectrification
Electrificationrate(urban/rural)

Nationalconnectivitywas28.9%ofpopulationatendofJune
2013.

ElectricitySectorMatrix
Topic

Electrificationtargets

Explanation

ReferencesandRemarks

AsatJune2013,theGovernmentthroughKPLCandREAhad
providedelectricitysupplyto23,167outofexisting25,873
publicfacilities.

CustomersconnectedundertheRuralElectrification
Programmeroseto453,500inJune2013from382,600inJune
2012.Electricitysoldtothosecustomersincreasedto313
GWhin2012/13.

Targettoachieve100%connectivityby2030.Interimtargetof
atleast40%by2016.
Somecontradictionbetween

differentGoKpublications.
REAwantstoensurethateveryKenyanhouseholdhas
electricityby2020.

RuralElectrificationAgencyinplace?

RuralElectrificationAuthority(REA)since2008

Statusandplansforoffgridruralelectrification

REAhasprimarilyfocusedonelectrificationofmainpublic
facilities:secondaryschools,healthandtradingcentres.Over
500publicinstitutionshavebeensuppliedwithPVforlighting.
2,706mainpublicfacilities(seeabove)lefttobeelectrifiedby
June2013.9,113primaryschoolstobeconnectedinthefirst REANews,June2013
halfofthe2013/14financialyear.Sixpilotprojectsinwind,
biogasandminihydrohavebeenimplemented.Plannedto
developREprojectsof250MWinpartnershipwithcountries
inthenext5years.

Operatorsofisolatedgridsetc.

14isolatedminigridsareinplace(2011).Noinformation
aboutoperators.

Regulationforsettingupisolatedgrids,incl.
microgrids(concessionterritoriesinplace?)

Stronginvolvementofthe46countyauthorities.REAis
partneringwithCountyGovernmentsinpreparationand

ElectricitySectorMatrix
Topic

Explanation

ReferencesandRemarks

updateofcountyruralelectrificationplansandpromotionand
developmentofrenewableenergy.
PolicyforBoPelectricitysupply(lowlevel
electrification)

Noinformationyet.

DemandsideManagementprogrammes

Noinformationyet.

EnergyEfficiencyactivities

EnergyManagementRegulationswereestablishedin
September2012thatrequireamongotherthingsthat
designatedenergyconsumingfacilitiescarryoutenergyaudits
atleastonceeverythreeyearsbyanauditorlicensedbyERC.
Thefacilityhastoimplementatleast50%oftheenergyaudit
recommendationswithinthreeyears.

EnergyefficiencywillbecoveredinthenewEnergyAct,for

whichadrafthasbeenpresentedinDecember2013.

KenyahaslaunchedtheStandardsandLabelingProgramand
wasjoinedinthisinitiativebyBurundi,Rwanda,Tanzaniaand
Uganda.This5yearprogramhasbeenimplementedwith
supportofGEF/UNDP.Bulkprocurementanddistributionof1
millionCFLsstartedin2009.

EnergyEfficiency

OtherIssues
Selfgenerationofelectricity

SelfgenerationofelectricityisundertakenbyJamesFinlay
(hydroandthermal),SotikTeaCompany(thermal),Sotik
HighlandsTeaEstate(thermal),OserianDevelopment

ElectricitySectorMatrix
Topic

RenewableEnergyPortal

Author:DetlefLoy
StatusasofFebruary2014

Explanation
Company(geothermal),PanAfricanPaperMills(cogen),
UnileverTeaKenyaLtd(hydroandthermal)andTiomin.

AspecialRenewableEnergyPortalhasbeensetupbythe
EnergyRegulatoryCommissioninJuly2013:
www.renewableenergy.go.ke

ReferencesandRemarks