Transcript - The Institution of Engineers of Kenya

The Institution of Engineers of Kenya Conference, 9th to
10th May 2012
Presented by;
Eng. Joseph Njoroge, MBS,
Managing Director & CEO,
Kenya Power
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Reference to Energy in the
Constitution of Kenya, 2010
Existing Power Sector Structure
Kenya Power’s Business Alignments
to County Governments
Opportunities
Challenges
Conclusions
Constitution of Kenya,
2010: Reference to Energy
& Electricity
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Fourth Schedule, Part 1, clause 31: National
Government does energy policy including
electricity and gas reticulation and energy
regulation
Fourth Schedule, Part 2, clause 8(e): County
Governments do County Planning and
development including electricity and gas
reticulation and energy regulation
>>> Electricity is both a National and County
resource
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Article 6 (3) – Requires national state organs
(Kenya Power included) to ensure reasonable
access to their services in all parts of the
Republic as appropriate having regard to the
nature of the service
Article 46 – persons’ right of access to
services offered by a public and private
persons
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Article 201 (2) – Limits use of Equalization
fund (a National Govt facility) to provide basis
services including Electricity to the
marginalised
Article 62 – Public Land –Laws emanating
from this definition will affect electricity
generation, transmission and distribution
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Articles 69, 70 & 71 – obligations in respect
of environment, enforcement of
environmental rights and agreements relating
to natural resources
Existing Power Sector Structure
GDC –steam resource
development
ERC
IPPs
Ministry
of Energy
KenGen
Imports
Off-grid
Generation
KPLC’s business alignment with County
Govts
KETRACO – Transmission
KPLC – Transmission/Distribution/Supply
Energy
Tribunal
Customers
REA
Institutions’ activities in the Scale up Exercise:
Ministry of Energy
Facilitating the Kenya Electricity Expansion Project (KEEP) being
implemented by MoE, Kenya Power, KenGen, REA, Ketraco, GDC
& ERC
Kenya Power
Maximization projects in areas around the extended grid network
to increase access
Slum areas electrification
Increase capacity, efficiency and quality of supply
Partial funding of projects under ESRP
Operation of generation and supply of electricity in off-grid
locations
Institutions’ activities in the Scale up Exercise:
Rural Electrification Authority
Extending the MV grid to social amenities in the rural
areas
Investment in off-grid generation
KETRACO
Provides the transmission network to connect
generation and distribution and between major load
centres. REA and Kenya Power extends downstream
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Transmit and distribute Electricity in Kenya
Has established 61 Branch centres to bring
services to the people
All 47 counties have Branch Centres already
set up
Opportunities &
Challenges
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Expanded role of the National Energy Regulatory
Commission to policy development to guide
Counties in developing Electricity services
Counties can undertake power generation projects
to meet their electricity needs
Increased demand of electricity at 10% per annum
due to:
◦ County Government – County Offices, urban centres,
Infrastructure development.
◦ Resulting increased access
◦ Infrastructure development in Vision 2030
Vision 2030 envisages major infrastructural development
to facilitate economic growth in the Medium Term
Programs and railway automation. Kenya Power’s
contribution is:
 Increasing population access to electricity from the current
29% to 40% by 2020
 Planning and implementation of distribution reinforcement
and upgrade projects
 Procurement of adequate power generation capacity from
diverse sources; and maintaining a minimum reserve
margin of 15% (and preferably 30%)
 Promotion of green energy investments by undertaking the
procurement process
 Improving power supply quality and reliability
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Petroleum deposits discovery in Turkana
could usher in a new frontier in Energy
provision should the deposits be confirmed
to be commercially viable.
Increased necessity to expand the
transmission and distribution systems and
continued maintenance to ensure quality of
supply
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Capacity development in each County to
guide decisions related with Energy &
Electricity
Different levels of endowment to natural
resources related to electricity – need for
policy framework for the same
Commitment towards energy efficiency &
environmental issues
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Capital outlay for electricity projects – The
sector is capital intensive in nature
National Government’s role in provision of
Investment guarantees for development of
generation plants
Clear mandates of Sector players to ensure
efficiency in resource utilization
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Constitution of Kenya 2010 saw a new dawn for the
Country and created enormous opportunities to
achieve the gains envisioned in Vision 2030
Demand for electricity in Kenya has been growing
steadily over the last 5 years with it rising by 9% in
the year 2010/11. A medium term growth of
between 10 & 12% is expected.
Access and customer service has been the key
focus for Kenya Power in delivering the gains made
by the Constitution
The challenges are easily overcome by consultative
planning, clear mandates of every sector player, a
robust National Regulatory Authority and National
Government involvement.
Thank You
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