Country Action Plan-Proposed Outline

Transcription

1 e8-gef-undesa Financing Sustainable Electrification Africa Dialogues Nairobi, Kenya, April 13-15, 2010 Country Action Plan-Proposed Outline [Kenya]

2 OVERVIEW Liberalization of the energy sector in 1996 Sessional paper on Energy no. 4 of 2004 Energy Act 2006 Vision 2030 Installed Capacity 1500MW Hydro constitutes about 60%, Thermal 27%,Geothermal 10%, Others 3% Renewable energy- Wind, biogas, biomass, geothermal, solar Institutions- MoE,KENGEN,IPPs,KPLC,KETRACO,GDC, ERC

3 Current Obstacles Challenges Capital for Investment-Drilling wells Legal framework Appropriate review Accessibility /Connection to the Grid Limited Use of Renewable Energy Project finance models-bankable PPAs Capacity awareness Technology transfer

4 Opportunities Geothermal resources Potential 7000 MW Wind with good speeds Load Factors of about 45% Cogeneration- bagasse Competitive Market Political will Hydro in Ethiopia Tax Incentives

5 Areas where assistance is required Capacity building & Inst Strengthening Appropriate technology transfer Adequate funding for Rural Electrification- Loans, Grants Donations Technical assistance (CDM, Project finance, feasibility studies etc)

6 Country Action Plan Summary Current obstacles challenges 1.Lack of appropriate regulations to support the legal framework relating to rural electrification Opportunities Room to review the legal institutional framework Political will REA in place Key Actions Required/Objectives Identify duplicating overlaping roles define the roles of the key players (KPLC;KenGe;KETRAC O;GDC ; REA;ERC &MoE) Develop Service Legal Agreement between the parties ((KPLC;KenGe;KETRAC O;GDC ; REA;ERC &MoE) Implement instruments to define strengthen governance structure Develop framework for collaboration with the private sector,communities,instit utions etc Key Actors to be Involved (KPLC;KenGe; KETRACO;GD C ; REA;ERC &MoE),, MoE MoE,IPC,,,REA,MoF Timeline Areas of Assistance Institutional strengthening for the key actors Benchmarking with best practices Enforcement supervision Finance

7 Country Action Plan Summary Current obstacles challenges 2. Low accesibility connectivity in the rural areas Opportunities Easy in Kenya to mobilize the rural communities Demnad exist Increase access in the rural currently from 63% to 100% Increase connectivity from 10% currently to 22% Key Actions Required/Objectives Define asset ownership mgt of rural electrification infrastructure Connect all public facilities Install additional transformers Adopt new conductor sizes or any other measure to enhance customer reach beyond 600metres Timely procurement of materials Encourage local manufacture of powerline material Key Actors to be Involved KPLC,REA,MoE,M of Timeline Areas of Assistance Technical assistance

8 Country Action Plan Summary Current obstacles challenges 3. Limited use of renewable energy Opportunities Political will exist to promote the development use of renewable energy Task force on Green Energy development in place Geothermal resource 7000MW Key Actions Required/Objectives Develop implement a marketing strategy Finalize the rural electrification master plan Adopt energy mix policy in rural electrification Dissemination of information on rural electrification Review of building regulations to incorporate installation of solar PVs in buildings Key Actors to be Involved MoE,MoF,KPL C,REA,KenGen, key private sector players development partners MoE,MoF, the private sector Timeline Areas of Assistance Technical assistance

9 Country Action Plan Summary Current obstacles challenges Opportunities Wind good speeds with a load factor of 45%, a 300MW project negotiated already Sun over 300 days per year Attractive Tax incentives Green Energy Facility being developed Key Actions Required/Objectives Key Actors to be Involved Timeline Areas of Assistance Funding especially for geothermal drilling

10 Country Action Plan Summary Current obstacles challenges Opportunities Key Actions Required/Objectives Sensitization of potential investors on renewable energy Continous review of tariffs to ensure cost effectiveness Provide incentives(tax holiday; tax exemption; provision of capital subsidies through grants) Institutionalize carbon trading Key Actors to be Involved (KPLC;KenGe; KETRACO;GD C ; REA;ERC &MoE) Timeline Areas of Assistance

11 Country Action Plan Summary Current obstacles challenges 4.Adequate understing of project finance models 5. Financial sustainability Opportunities Create partnership with the private sector Build capacity on project finance Good macroeconomic framework Mobilize resources locally globally Key Actions Required/Objectives Operationalize the PPP Act of 2009 Create awareness on PPP arrangement Increase customer connectivity with a view to maximize revenue collection Increase capacity to fund raise increase revenue inflows Key Actors to be Involved MoE, MoF, Private Instutions REA,MOE,KPL C Timeline Areas of Assistance Capacity Building on Project Finance More resource allocation from GOK

12 Focal Point Contact Information Rural Electrification Authority Tel: Fax:

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