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Country Profile of Conventional and Renewable Energies: Republic of Kenya
Last updated on 16 Oct 2006

Prepared by Maria-Evangelia Kaninia Intern from August to …, 2006 for the Department of Economic and Social Affairs Statistics Division Energy Statistics Section United Nations, New York

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1 Executive Summary
Kenya’s mix of energy resources is rather typical for an African country, relying heavily on biomass for the energy needs of a largely rural population that does not have access to alternative fuels (or cannot afford them) and electricity. The electricity sector is dependent on the hydraulic resources. Kenya is a leader in exploitation of geothermal resources, which currently provide approximately 19% of the generated electricity. Other RE resources are also exploited, such as stand-alone small scale solar systems and wind generators (connected to the grid). Since there are no proved oil reserves in the country, crude oil is imported and locally refined. A supplement of oil products is also imported.

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2 Introduction & Overview
2.1 Brief Country Fact
2.1.1 Geographical data
Location: Eastern Africa, bordering the Indian Ocean, between Somalia and Tanzania Surface area: 569,259 sq km of land area ([EIU]), of which 9% arable land or permanent crops; plus 13,400 sq km of water surface ([CIA]) Terrain/ topography: low plains rise to central highlands bisected by Great Rift Valley; fertile plateau in west Climate: ranges varies from tropical along the coast to arid in the interior

2.1.2 Population
Total population: slightly less than 35 million ([CIA], July 2006 estimate) Growth rate:2.6% (same source); Kenya ranks 144th in terms of human development indices ([HDR]) but considerably higher than the neighbouring countries, though it has declined after the mid nineties

2.1.3 Political situation ([CIA], [EIU])
Kenya obtained independence in 1963, after a long period of uprising against the protectorate regime (under British control) and the settlers. Though formally a republic, the system was de facto one-party, with the first president remaining in power until his death in 1978. The power shifted to a representant of another ethnic group; in 1982, the regime became de jure one-party and the president acquired increasingly more powers. In 1991, the one-party constitutional amendment was abolished under growing internal and external pressure, although the president still managed to win the 1992 and 1997 elections owing to the fragmentation of the opposition. This reign of 24 years was terminated in 2002, with the impressive victory of the National Rainbow Coalition under Mwai Kibaki within an admittedly free climate, which bodes well for the next elections in 2007.

2.1.4 Economical Situation ([EIU], [STA])
Kenya is an advantageous position as the regional hub for trade and finance in East Africa. Agriculture is the dominant sector of the economy, accounting for 24% of the GDP in 2004 (source: [EIU], Economic structure).The industrial sector, which the government tries to promote, accounts for 10% and is mainly consisted of food-processing units. Kenya has been chronically hampered by corruption and by reliance upon several primary goods whose prices have remained low. The 2002 change of regime encouraged donor support.

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Figure 1 Map of Kenya, [EIU]

2.1.4.1 Vital statistics (2005 estimation, [CIA]) GDP (PPP): $37 billion (2005 est.); $49 billion according to [EIU], Country Data

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GDP growth rate: 5.2% (2005 est.) GDP (PPP) per capita: approximately $1,100 (2005 est.) Inflation rate (consumer prices): 10.3% (2005 est.) Main exports: mainly agricultural products; to Uganda (13.8%), the UK (10.5%), the US (9.5%), the Netherlands (8.1%) (2005) Main imports: all other goods apart from agricultural ones, including machinery and oil; from UAE (13.9%), Saudi Arabia (10.1%), US (10.1%), South Africa (8.1%), China (7.3%), India (6.7%), UK (5.6%), Japan (4%)

2.2 Overview of the energy sector
2.2.1 Production, trade and consumption of commercial energy
ktoe, source: [IEA], 2004 Coal Crude Oil Oil products Hydro Geothermal, Solar, other RE 890 Combustible Renewable and Waste 12539 7 Electricity Total

Inland Production Imports Exports TPES Electricity Plants Refineries Other transformation TFC Industry Transport sector Residential Other Electricity Generated GWh 66 66 -1712 -342 66 2054 66 2054 1586 -432 1117 -468 1717 -83 2283 334 1532 260 129 1342

247

13676 3713 -432

247 -247

890 -890

12539 -401 -4088 8050

7 479 -84 402 256

16920 -1527 5 -4597 10801 656 1532 8406 178 5567

8050

96 49

2869

1035

321

Table 1 Simplified energy balance table for 2004 (source: [IEA])

According to Table 1, Kenya is a net importer of energy commodities, with imports accounting for 22% of the total primary energy, including the entire amount of conventional commercial (hydrocarbons and coals) energy resources. The inland energy resources are consisted of RE resources (hydro, geothermal and biomass).

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Sector organisation: The Ministry of Energy ([MOE]) is the authority that manages the energy sector. It is centralized and controls the following parastatal companies: o Kenya Power and Lighting Company Ltd1 o Kenya Petroleum Refineries Ltd o Kenya Electricity Generating Company Ltd (KENGEN), formed in 1999. o National Oil Corporation (NOCK) o Kenya Pipeline Company (KPC) o Electricity Regulatory Board (ERB) Kenya, along with Uganda and Tanzania, formed in 1999 the East African Community. Within this context, the East African Power Master Plan was first studied in 2003 (see [EAC]). The Kenya National Energy Policy document is still in draft form and is undergoing review. In the absence of the National Energy Policy, statutory Acts such as the Electricity Act have provided the required policy direction ([UNEP]). 2.2.1.1 Coal In 2004, Kenya imported 66ktoe according to [IEA] (or 90ktoe according to [EIAc]) of coal for use in the industrial sector. This amounts to less than 1% of total final energy consumption and approximately 2.4% of commercial energy consumption (excluding biomass). The timeline provided by [EIAc], Figure 2, does not show any particular trends in coal consumption. [EIAa] reports that Kenya is exploring for coal new deposits, with a view to diversifying the fuel sources for electricity generation.
coal consumption, ktoe ([EIAb]) 120 100 80 60 40 20 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 EIAb IEA

Figure 2 Coal consumption evolution ([EIAc], comparison with [IEA], Table 1)

2.2.1.2 Oil Upstream sector: Kenya has no known hydrocarbon reserves, and all requirements are imported. According to [EIU], several blocks (in offshore locations) will be explored after recent favourable surveys. The exploration activities are described in [EIAa]. [CBS] reports on Chinese exploration activities (on the borders of Sudan and Somalia and in coastal waters).

KPLC used to dominate the power sector as a vertically integrated power utility. Prior to 1996, there were five (in total) parastatal organisations involved in electric power generation, transmission and distribution. Since then the sector has been reformed and the generation of power in the country has been partially privatised. KPLC, which is 51% Government owned, remains the sole body licensed to transmit and distribute electricity in the country ([UNEP]).

1

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Midstream sector: Kenya Petroleum Refineries Ltd (see [MBEa]) - a joint venture between the government and several oil majors (among which Chevron (16%) and Royal Dutch (17%)) - operates the sole refinery of the country which is located in Mombasa. The refinery has a capacity of 4,000ktoe per year2, although according to [EIA] (Table 1) the throughput was less then half this amount3. The refinery meets 60% (2004) of total4 demand for petroleum products. The refinery is expected to be upgraded for production of high value products and to set up a liquefied petroleum gas (LPG) unit ([AAF]). The capital, Nairobi, is supplied through a pipeline, operated by the state-run and -owned Kenya Pipeline Company (KPC). The 450km long pipeline to Mombasa-Nairobi pipeline was the first to be commissioned (1978), followed by expansions (446km) to towns in Western Kenya ([KPC]). KPC also owns storage depots strategically located in different parts of the country, with a total capacity of 300,000 cubic meters (for an interactive map of the depots, see [KPCa]). According to [EIU], because of rising fuel demand, the pipeline throughput rose by 10% in 2004, to 3.3m cubic meters per year. Projects: Currently, KPC is undertaking a capacity enhancement project to meet the rising demand for petroleum products in the region. The line from Nairobi to Eldoret will also be enhanced in the following years. The list of immediate projects comprises the construction of an oil jetty in Kisumu and the extension of the pipeline to Uganda5. The company is also planning to venture into the liquefied petroleum (LPG) gas business (source: [KPCb]). The objective of the LPG project is (according to [LPG]) “to enhance capacity for importation and distribution of LPG to supplement existing local LPG production and supply chain facilities”, so that LPG can substitute biomass fuels and prevent deforestation The project comprises ([LPG]) a jetty to receive imported LPG cargos, a 6,000Mt storage and bottling facility in Mombasa, and a second 2,000Mt plant in Nairobi.
2003, [EIAb] Crude oil Gasoline Jet fuel kerosene Distillate Residual LPG Unspecified 6.2 4.4 1.9 8.4 10.0 1.4 2.4 306.3 220.6 92.6 418.8 498.0 70.2 117.0 17.8 12.8 5.4 24.3 28.9 4.1 6.8 Refinery output 000 ktoe % bbl/d Imports 000 bbl/d 33.0 2.8 6.9 4.6 8.7 2.4 0.0 0.9 ktoe 1642.4 137.4 345.1 226.6 434.8 121.0 0.0 43.3 % 55.7 4.7 11.7 7.7 14.7 4.1 0.0 1.5 7.9 10.7 5.9 15.1 10.3 1.4 3.0 393.4 532.4 291.3 753.5 513.4 67.2 148.4 14.6 19.7 10.8 27.9 19.0 2.5 5.5 Consumption 000 ktoe bbl/d

%

Total 34.6 1723.6 59.3 2950.7 54.2 2699.7 Table 2 Shares of petroleum products, by type, in refinery output, imports and total consumption, 20036 source: [EIAb]

2.2.1.3 Electricity Electricity constitutes approximately 3.7% ([IEA] data) of the final energy consumption. In 2004 a small quantity of electricity was imported from the interconnection with Uganda, thus constituting the country a net importer of electricity.
Or 90,000bbl/d according to [EIAa], which is equivalent to 4,500ktoe per year. The refinery has been operating below capacity and has struggled financially since the 1994 liberalisation of the oil sector, which allowed direct importation of petroleum products ([EIAa]). 4 Total demand is calculated as the sum of the final energy consumption plus input to conversion processes (electricity generation and other transformation processes). 5 According to [EIAa], the pipeline will have a 16,500bbl/d capacity and will supply Uganda, Rwanda, Burundi, northwestern Tanzania and eastern Congo DR. 6 It is reasonable to assume that the ratio between the types of products remained approximately the same for 2004.
3 2

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The Ministry of Energy mentions that the effective power generation capacity is 1,032 MW, against a peak demand of 920 MW, which is projected to rise by 14% per annum, consistently with the economic recovery, to 1370 MW by July 2008 (terminal date for a capacity expansion project) ([MOEa]). This estimate is lower than that of other sources (including [EIAc] and [EIU]); however the ministry site does not specify when it was last updated. [EIAc] estimates that the total capacity is 1,143MW for 2004 (36% thermal, 59% hydro, 5% geothermal7). The evolution of the capacity by type is shown in Figure 3. On the other hand, the Final Phase Report on the East African Power Master Plan ([EACa]) mentions that the grid system (excluding stand-alone generators) in Kenya has a total installed capacity of 1,232 MW, consisted of 707MW of hydro, 398MW of thermal and 127MW of geothermal (plus an insignificant quantity of wind energy capacity). This source diversifies as to the total effective capacity which is 1,121MW (out of which 654MW hydro). All sources agree that the share of generating capacity owned by KenGen, the government owned utility, is about 83% (in terms of effective capacity)8.
Electricity generation capacity, MW, source: [EIAc] 1,400 1,200 1,000 800 600 400 200 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 thermal hydro geothermal

Figure 3 Generation capacity (MW) evolution, [EIAc]

According to [KGa], the hydro plants operated by the public utility (KenGen) have an installed capacity of 677.3MW. Out of these, 547.2MW are tapped from the lower part of the Tana river, 106MW from the Turkwel Power Station and the remaining from small old hydro plants.
capacity (MW) 40.0 94.2 225.0 44.0 144.0 106.0 commissioned in: 1981 1974 1978 (145MW), 1999 (80MW) 1968 1988 1991

MASINGA SEVEN FORKS HYDRO STATIONS, lower part of the Tana River West Pokot near the Kenya-Uganda border KAMBURU GITARU KINDARUMA KIAMBERE Turkwel

Apparently, this distribution ([EIAc]) by type of the generating capacity is erroneous; 5% of a total capacity of 1,143MW equals 57MW, while the sum of the geothermal plants Olkaria I, II and III is 127MW (see page 15). 8 For more information on the share of IPP in the electricity sector, see Table 18 in [UNEP] (2002 data).

7

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Tana Mesco small hydro plants, various locations Ndula Sagana Gogo Sosiani

14.4 0.4 2.0 1.5 2.0 0.4

1940, 1953 1919 1924 1952 1952 1955 1955

Wanjii 7.4 Table 3 Hydro plants belonging to KenGen ([KGa])

The (KenGen) thermal plants, mainly fueled with diesel, have a combined capacity of 216.4MW. The total thermal capacity (including the IPP-owned) is 340MW (according to [EACa]).
capacity (MW) Kipevu thermal station Kipevu I diesel plant Kipevu gas turbine plant Nairobi South Fiat Gas Turbine Garissa Power Station Lamu Power Station 63 73 63 13.5 2.4 1.5 fuel na diesel na na diesel diesel commissioned in: 1972 (30MW), 1976 (33MW) 1999 1987 (31MW), 1999(32MW) 1972 na na bound to be retired – in standby mode since 2005 ([EACa]) isolated notes

Total 216.4 Table 4 Thermal plants belonging to KenGen ([KGa]) capacity fuel commissioned in: (MW) 56.5 diesel na Iberafrica

notes to be retired in 2004 ([EACa]) Mombasa area – recent addition to the system

Westmont Tsavo Power Company plant
Total

43 74 473.5

na na

na na

KenGen also operates two plants (of 115MW combined capacity) in the Olkaria geothermal field (see also page 15). Sector organisation: Kenya Electricity Generating Company Limited (KenGen) is the leading electric power generation state-owned company in Kenya (producing about 80% of the electricity consumed in the country). KenGen is in direct competition to four independent power producers (IPP) ([KG]). The transfer of all publicly owned generation facilities to KenGen took place with the 1997 Electric Power Act. Kenya Power and Lighting Company Limited (parastatal company, [KPLC]) is a limited liability company responsible for the transmission, distribution and retail of electricity throughout Kenya. The Company owns and operates the national transmission and distribution grid, and is responsible for the scheduling and dispatch of electricity to more than 600,000 customers throughout Kenya. According to the company site, KPLC buys electricity in bulk from KenGen and various Independent Power Producers. The Electricity Regulatory Board (ERB) reviews electricity tariffs and enforces safety and environmental regulations in the power sector as well as safeguarding the interests of electricity consumers. Its statutory functions are regulated by the Electric Power Act of 1997 (see [ERB]).

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The IPP (Independent Power Producers) had the chance to enter the electricity market in the early nineties, when a prolonged drought9 made imperative the expedited construction of oil-fueled generators. Projects: o Regional Power Interconnections: (source: [MOEa]) Feasibility studies of regional interconnections towards Tanzania and Zambia have been undertaken by the MOE (in cooperation with the governments of the respective countries). Specifically, the study for the 370km Arusha (Tanzania) - Nairobi 330kV interconnection was completed in 2002 and preparations for its implementation (Dutch funding is considered probable) are at an advanced stage, while the project is expected to be completed by 2009. According to [AFR], the final goal is the creation of a regional unified grid (including Kenya, Tanzania and Zambia), of which the abovementioned line and the 670km Pensulo (Zambia) – Mbeya (Tanzania) 330kV line is a first stage (see [AELP]). The unified grid will allow Kenya to tap Zambian hydroelectric power (the long term estimate by [AFR] is 800MW) through the Tanzanian grid. This project is an extension of the Southern African Power Pool (SAPP) programme (http://www.sapp.co.zw) launched in 1995 by the Southern African Development Community (http://www.sadc.int) and subsequently integrated into the Pan-African Transmission Grid initiative of the New Partnership for Africa's Development (NEPAD, http://www.nepad.org). o Development of additional generation capacity: (source: [MOEa]) According to the National Power Development Plan, an additional 423MW will be installed during the period July 2006July 2008. Out of this, the Kenya Electricity Generating Company (KenGen) will install 278 MW of generation capacity, plus an extra 30 MW of wind powered generation in a joint venture with an Independent Power Producer (IPP). Other IPP will install 115 MW. The KenGen plants are detailed in Table 5.
capacity (MW) 70 2.5 60 10 60 35 20 20 type of plant gas turbine geothermal hydro hydro combined cycle gas turbine geothermal hydro hydro location Coast Eburru Sondu River Tana Power station Kipevu Olkaria Kiambere Kindaruma date of completion Aug-06 Nov-06 Jul-07 Jul-07 Jul-07 Apr-08 Jul-08 Jul-08 remarks

see [KGb] additional capacity

additional capacity additional capacity additional capacity joint venture with 30 wind na Jul-07 EcoGen Table 5 Planned generation capacity expansion by the public utility ([MOEa])

The Sondu project has a dedicated site ([KGb]), where it is mentioned that the construction was to be completed by the end of 2005. It is expected to function at an average rate of approximately 63%, producing 331GWh per year (which constitutes 6% of the 2004 electricity generation). Funding for this project was obtained owing to a Japanese developmental organisation (JBIC).
capacity (MW) 80 type of plant diesel location Nairobi date of completion Sep-07 remarks invitation for competitive tenders

9

As to the results of this drought to the mix of various types of generation, see in the Annex.

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35

geothermal

Olkaria

Apr-08

process managed by the KPLC

Table 6 Planned generation capacity expansion by IPP ([MOEa])

2.2.2 Access to electricity/ network10
The [WRI] estimate of the percentage of population with access to electricity in 2000 was 7.9%. The World Bank documents concerning the Energy Sector Recovery Project estimate this percentage at 9.5% (see [ESR], document published in 2004)11. [SOL] provides data for 1999, according to which less than 2% of the rural population (about 80% of the population) and about 8% of the total population have access to the grid. By 1999, only 61,500 households had been connected to the grid through the KPLC rural electrification program12. The KPLC-operated interconnected network of transmission and distribution lines covers about 23,000 km. The transmission network comprises 220kV and 132kV lines, plus a limited length of 66kV lines. According to the company site, the network has been growing at an average rate of 4% over the past five years. Plans exist to expand the grid substantially to ensure reliable energy transmission. Construction of a 132kV line from Kipevu to Rabai is already underway, while a 220kV line from Kiambere to Nairobi is planned ([KPLC]). The improvement of the efficiency is also a target (currently losses are at 20%). [KPCLa] provides a map of the transmission network. The transmission system is also described in a detailed way in [EACa], page 18. The electrical department of the MOE ([MOEa]) is responsible for updating the Rural Electrification Master Plan. According to [MOEa], rural electrification was last expanded in 1997. Currently, preparations for updating the Master Plan have been completed (the study is based on external donations). Schools appear to be the primary targets of the electrification process. The World Bank funded ESR programme ([ESR]) lists the upgrade, reinforcement and extension of the distribution system as Part D2 of the programme. It comprises the construction of 66kV, 33kV, 11kV and low voltage lines, supply of a substantial quantity of energy meters, general maintenance of the existing distribution network.
Percentage of Households connected to electricity in Kenya 25

20

15

National Urban

10

Rural

5

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

A good source on the institutional background concerning the access problem in Kenya is [UNEP]. [WB94] mentions that in 1994, the access percentages were less than 30% for the urban and 0.5% for the rural population. 12 [UNEP] mentions (page 34) that the detachment of the rural electrification program from KPLC jurisdiction and the creation of a semi-autonomous electrification agency with the aim of increasing national electrification levels to 40% is a possibility.
11

10

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Figure 4 Access to electricity evolution, source: [UNEP]

3 Analysis of Renewable Energy Sector
Legislative and institutional structure
The Renewable Energy Department ([MOEc]) of the Ministry of Energy is responsible for the RE sector. The department includes divisions for biofuels, solar and wind energy, hydropower and energy conservation. The functions of the department include energy policy formulation and feasibility studies.

3.1 Hydro
3.1.1 Resource potential
[MOEc] reports that the current known potential specifically for mini and micro hydro is estimated to be 300MW. No estimation concerning large-scale potential has been found.

3.1.2 Achievements13/ Projects
Hydro-power constituted around 50% of the total electricity generated in Kenya in 2004 ([IEA]). The bulk of this electricity is tapped from five generating plants along the River Tana. The five stations combined Kindaruma, Kamburu, Gitaru, Masinga and Kiambere - have an installed capacity of about 570MW (see page 7). Turkwel Gorge Power Station in north-western Kenya has an installed capacity of 106MW. There are also several small hydro stations, all built before independence in 1963, with a combined generation output of 40MW. According to the list of power plants projects (Table 5 and Table 6) 70MW of hydro capacity will be added by 2007 and 40MW by 2008, all by the public utility (KenGen). A number of pilot projects in the area of mini and micro hydro have been implemented to assess the viability of such systems and create the impetus for accelerated exploitation mini/micro hydro resource (reported by [MOEc]).

3.1.3 Major constraints
The further exploitation of hydro resources entails a series of “typical” negative impact issues. The government of Kenya does follow the appropriate guidelines for the evaluation of these impacts, as is seen for example in the site for the Sondu - Miriu plant (see [KGb]).

3.2 Solar
3.2.1 Resource potential
According to the map published in [SWAa], Kenya has very good solar energy potential, with an average radiation of 5kWh/m2/day, sufficient for small-scale PV or other projects.

3.2.2 Achievements/ Projects
[MOEc] reports that “an estimated 220,000 solar PV units are currently in use in Kenya” and that “about 7,000 solar thermal systems are in use for drying and water heating”. According to the same source, “the government is currently implementing a solar PV electrification of schools and other institutions in selected districts, which are remote from the national grid as part of a national strategy to enhance the contribution of renewable sources of energy to the overall energy supply mix”.

13

See also page 7.

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An older (1994) report ([WB94]) mentions that 1MW of PV power was installed in Kenya at the time, divided among 20,000 households (50W per household). The use of solar systems for electrical uses was expanded since the mid-eighties, when it was realised that they were cost efficient for lighting or powering of electronic devices. [SOL] mentions that by 1999 3-4% of the rural population had acquired a PV system; while the peak installed PV capacity was 480MW. Out of this, more than 250MW came from micro-modules of 20W or less. The most recent source ([OECD]) mentions that some 150,000 PV solar home systems operate in rural and peri-urban areas, providing 1.3MW of power in total. Therefore, as long as demand in rural households remains low, solar systems are a viable option, when compared to the alternatives of connection to the grid (unfeasible) or kerosene or batteries (increase cost). [SOL] mentions, though, that when given the choice, the rural population prefers the grid over the solar systems.

3.3 Biomass and other combustible renewable resources
3.3.1 Current situation/ Projects
Biomass occupies the largest share of primary energy resources, accounting for 92% of the inland primary energy supply and 75% of the total final energy consumption ([IEA] data, 2004). The main forms in which biomass is consumed is as fuel wood or charcoal (which constitutes an important fuel particularly for urban dwellers). The data presented in Figure 5 ([WRI]) show a tendency for wood fuel consumption to increase at an almost steady pace; however this same series of data seems to be erroneous14 if compared with the data provided by [MOEc] for 2000 or the energy balance table published by [IEA] for 2004 (see also).
w ood fuel production, 000 cubic meters ([WRI]) 21000 20000 19000 18000 17000 16000 15000 14000 13000 12000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Figure 5 Wood fuel production, source: [WRI], assumed average wood density 0.5t/cubic meter wood fuel consumption, per capita total fuelwood consumption [MOEc], 2000 consumption (kg) percentage (000 t) rural 741 80 20748 urban 691 20 4837 (total population) (m) 35 25585 Table 7 Wood fuel consumption, [MOEc], 2000 total fuelwood per capita charcoal consumption, percentage consumption (000 t) consumption (kg) [MOEc], 2000 rural 156 80 4368
14

The reason it was included was to depict the steady rate of increase in consumption.

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urban 152 (total population) (m) 35 Table 8 Charcoal consumption, [MOEc], 2000

20

1064 5432

Biogas technology has been actively promoted in the country since the early eighties. About 1,400 family biogas plants have been installed so far, each producing on average about 1.2m3 of biogas per day15. The gas is used for cooking and to some smaller extent for lighting. The ministry further explains that “faster adoption of the technology is hampered by the high capital costs of construction. A national biogas survey is envisaged to determine the number of operational and no-operational plants with view to formulating interventions to enhance the technology adoption” (source: [MOEc]). Promotion of efficient types of stoves: The Ministry seeks to enhance the penetration of improved woodstove (efficiency of 30-35%) to 80% (from 47% in 2002) and that of advanced improved woodstoves (efficiency of 15-20%) to 15% (from 4% in 2002) of the population respectively by 2010, with a view to restricting the consumption of biomass ([MOEc]). Co-generation using bagasse: The sugar industry produces an average of 1.8 million tons of bagasse annually. Out of this quantity, about 56% is used in co-generation plants (total installed capacity is 25 MW) and the balance is disposed16 at cost. This capacity is typically installed within sugar processing industrial units for own use. Out of the major sugar companies only one is self-sufficient in electricity and has surplus capacity to export about 2MW to the national grid ([MOEc]). [BAG] describes a venture from a small company to produce briquettes from bagasse as a substitute for charcoal. The source of the waste material is the Chemelil Sugar Company.

3.3.2 Constraints
The demand is growing faster than the sustainable supply (2.7% versus 0.6% per year), according to [MOEc]. This imbalance exerts considerable pressure on the remaining forest and vegetation stocks and poses a threat to competing land use systems such as agriculture, forestry and human settlements.

3.4 Wind
3.4.1 Achievements/ Projects
A total of 550kW of wind electricity generation capacity are installed in Ngong and Marsabit, generating about 0.4GWh (source: [MOEc], no reference to specific year). Two units with a total capacity of 350KW were installed in 1995 as prototypes by TurboWind of Finland. [KGa] also reports that the wind power potential at Ngong is substantial for further exploitation. The UNDP has also financed mini-project for mechanical wind applications or electricity generation (see [UNDPa-b]). To promote investment in wind energy generation, the Ministry of Energy recently completed preparation of a broad National Wind Atlas. In addition, the Government is promoting the development of winddiesel hybrid systems for electricity generation under rural electrification programme in areas remote from the national grid ([MOEc]).

3.5 Geothermal
3.5.1 Resource Potential
Kenya is endowed with geothermal resources mainly located in the Rift Valley. According to [MOEb], the potential of the sites of the region (of which twenty have been earmarked for further investigation) is 2,000MWe or 3,000MWe if advanced systems were to be used.
15 16

The equivalent of this quantity in terms of thermal energy content is 7.5kWh. The unused bagasse is either burned or piled away, in both cases producing greenhouse effect gases.

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3.5.2 Achievements/ Projects
Electricity generation production started in 1981 when the first plant of 15MW was commissioned in Olkaria I (the installation was later (1985) expanded to 45MW, while an additional 70MW became available from Olkaria II17 in 2003). The third plant of the site (Olkaria III, 12MW) is operated by an IPP and according to Table 6 its capacity will be tripled by 2008. Besides, [MOEb] mentions that currently there is steam capable of generating an additional 25MWe in Olkaria I and 28MWe in Olkaria II (Table 5, however, lists these two expansion projects jointly).

3.5.3 Constraints
The major constraint is the lack of means to finance exploration projects. The government aims to undertake the exploration phase with the help of donors, and subsequently have the generating plants constructed by IPP.

4 Sources
[EIU] Economist Intelligence Unit, http://www.eiu.com/, Country profile and data [UNDPa] Utilising wind energy for pumping community water - Labura dam, link [UNDPb] Wind energy blows a bright future for Tsagwa village, link [AFR] “NEPAD, Regional electricity grids expanding”, Africa Recovery, Vol.18 #1, April 2004, link [SWA] Solar and Wind Energy Resource Assessment, Kenya, http://swera.unep.net/, link o [SWAa] Kenya Global Horizontal Solar Radiation, link [KPC] Kenya Pipeline Company, http://www.kpc.co.ke/ o [KPCa] Interactive map of storage facilities, http://www.kpc.co.ke/depot.php o [KPCb] 03/08/06, from http://www.eastandard.net/, link [KPLC] Kenya Power and Lighting Company Ltd, http://www.kplc.co.ke o [KPCLa] Transmission network map, link [MBEa] Mbendi profile for Kenya Petroleum Refinery Ltd (KPRL), http://www.mbendi.co.za/remo.htm [KG] Kenya Electricity Generating Company Limited, http://www.kengen.co.ke/ o [KGa] Power Plants, link o [KGb] Sondu Miriu Hydro power project, link [LPG] “Government LPG Policy Translates to Projects”, Jul-06, http://www.petroleum.co.ke/, link [WB94] “Solar energy answer to rural power in Africa”, Robert van der Plas, Public policy for the Private sector, FPD note No.6, April 1994, link [CIA] World Factbook, https://www.cia.gov/cia/publications/factbook/geos/ke.html [HDR] UN Human Development Reports, http://hdr.undp.org/statistics/data/countries.cfm?c=KEN [IEA] Energy Balances of non-OECD countries, 2006 o [IEAa] Evolution of Electricity Generation by Fuel from 1971 to 2003, graph, link [EAC] East African Community, http://www.eac.int/programme.htm o [EACa] East African Power Master Plan , Final Phase report , document last reviewed in May 2004, link [EIAa] Region Energy Profile, updated in Feb-07, http://www.eia.doe.gov/emeu/cabs/eafrica.html#oil [EIAb] Energy balance table for 2003, http://www.eia.doe.gov/emeu/world/country/cntry_KE.html [EIAc] International data timelines, http://www.eia.doe.gov/emeu/international/contents.html [ERB] Electricity Regulatory Board, http://www.erb.go.ke/ [AELP] African Energy Legacy Projects, link [CBS] “Chinese President Finalizes Kenya Oil Deal”, Apr-28 2006, CBS news, link [AAF] “Kenya: Oil Refinery Seeks Sh21bn for Upgrade”, Oct-6 2006, link [SOL] A case study on private provision of photovoltaic systems in Kenya, Mark Hankins, link
Olkaria II is a state-of-the-art plant, co-financed by the World Bank, the European Investment Bank, KfW of Germany and the Kenyan Government.
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[OECD] Identifying Complementary Measures to Ensure the Maximum Realisation of Benefits from the Liberalisation of Trade in Environmental Goods and Services, Case Study: Kenya, OECD, Jul-13 2006, link [UNEP] Energy Access Theme Results, Energy services for the poor in Eastern Africa, Sub-regional technical report by AFREPREN/FWD, Kenya, Apr-14 2004, GNESD, www.gnesd.org/, UNEP, link [WRI] http://earthtrends.wri.org/, World Resources Information, Earthtrends [ESR] World Bank Energy Sector Recovery Project, 2004, link [BAG] Charcoal Fuel From Bagasse- Chardust Ltd in Kenya, excerpt from: Village Power Newsletter, Issue #23, June 6, 2002, link [MOE] Ministry of Energy, http://www.energy.go.ke/ o [MOEa] Electrical Department, http://www.energy.go.ke/electrical.php o [MOEb] Geothermal Potential, http://www.energy.go.ke/geothermal.php o [MOEc] Renewable Energy Department, http://www.energy.go.ke/renewable.php

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5 Annex

Figure 6 Locations of the generating plants operated by the public utility, KenGen, source: [KGa]

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Figure 7 Electricity generation by fuel, timeline, source: [IEAa]

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