Kenya s Wind Energy Market

Transcription

1 Project Development Programme East Africa Kenya s Wind Energy Market Target Market Analysis

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3 Target Market Analysis Kenya s Wind Energy Market

4 Authors Paul Kirai Bijal Shah November 2009 Editor Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH On behalf of the German Federal Ministry of Economics and Technology (BMWi) Contact Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Potsdamer Platz 10, Berlin, Germany Fax: +49 (0) Web: Web: This Target Market Analysis is part of the Project Development Programme (PDP) East Africa. PDP East Africa is implemented by the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) on behalf of the German Federal Ministry of Economics and Technology (BMWi) in context of the Export Initiative Renewable Energies. More information about the PDP and about renewable energy markets in East Africa: This publication, including all its information, is protected by copyright. GTZ cannot be liable for any material or immaterial damages caused directly indirectly by the use or disuse of parts. Any use that is not expressly permitted under copyright legislation requires the prior consent of GTZ. All contents were created with the utmost care and in good faith. GTZ assumes no responsibility for the accuracy, timeliness, completeness or quality of the information provided.

5 Target Market Analysis: Kenya s Wind Energy Market V Content 1 STATUS QUO OF THE WIND ENERGY SECTOR Brief Wind Energy Sector Overview Major Market Segments Grid Connected Electricity Generation Stand-alone Electricity Generation Water Pumping Local Capacities MARKET POTENTIAL Overall Sector Outlook Undeveloped Market Opportunities WIND ENERGY SPECIFIC REGULATIONS AND FRAMEWORK Policies and Regulations Grid Connection Procedure Government Institutions Challenges Applicable Public Sector Support and Financing Mechanisms Campaigns and Other BUSINESS PARTNERS AND COMPETITORS Overview of Wind Energy Key Market Players Wind Energy Projects Overview Highlights in Local Wind Energy Market Development... 12

6 Target Market Analysis: Kenya s Wind Energy Market VI List of Tables Table 1: Opportunities in Grid Connected Electricity Generation Kenya... 3 Table 2: Opportunities in Stand-Alone Electricity Generation Kenya... 3 Table 3: Opportunities in Water Pumping... 4 Table 4: Existing Capacity for Studies and Works (Wind Energy)... 4 Table 5: Investment Potential for Grid Connected and Off-Grid Electricity Generation... 5 Table 6: Tariff Overview... 7 Table 7: Kenya's Wind Energy Market Players Table 8: Proposed Implementation of Wind Power Plants List of Figures Figure 1: Map Showing Installed Wind Pumps and Turbines... 2 Figure 2: Kenya's Wind Resources; Mean Wind Speeds (m/s)... 6

7 Target Market Analysis: Kenya s Wind Energy Market VII List of Acronyms AfDB CDM ERB ERC KenGen KEREA KPLC LTWP MoE NGO PV REA REF REM SME SWERA UNDP UNEP African Development Bank Clean Development Mechanism Energy Regulatory Board Energy Regulatory Commission Kenya Electricity Generating Company Kenya Renewable Energy Association Kenya Power and Lighting Company Lake Turkana Wind Power Ltd Ministry of Energy Non-Governmental Organisation Photovoltaic Rural Electrification Authority Rural Electrification Fund Rural Electrification Master Plan Small- and medium-sized enterprise Solar and Wind Energy Resource Assessment United Nations Development Programme United Nations Environment Programme Currency 1 USD = KES 79,20 (May 2010) 1 = KES (May 2010) Measurement W Watt Wp Watt peak Wh Watt hour kw Kilowatt kwp Kilowatt peak kwh Kilowatt hour MW Megawatt MWp Megawatt peak MWh Megawatt hour GW Gigawatt GWp Gigawatt peak GWh Gigawatt hour

8 Target Market Analysis: Kenya s Wind Energy Market VIII Summary Kenya is a country of about 40 million people and it is the largest economy in the Eastern part of Africa. Despite being the biggest economy in the region, total energy consumption per capita is low at about 503 koe (kilograms of oil equivalent) per annum. Consumption of commercial energy is low with electricity use accounting for about 9 % of total primary energy consumption. Despite the low figures, Kenya faces a sharp increase in energy demand, outstripping supply. Today, everyday life is characterised by power outages and load shedding. Estimates indicate that the demand will grow at an annual compounded rate of 9 % until According to government plans, wind energy is expected to inject about 800 MW to the national grid by Despite the immense potential that it holds, Kenya s wind energy sector had been confined to small projects focused on water pumping and grain milling in remote areas without grid connection. But efforts by the government to encourage investment in the sector are starting to pay off. The National Wind Atlas created by the Kenyan Government is attracting investors interested in harnessing wind energy. The wind market is slowly gaining acceptance with local and foreign investors, the government, and NGOs which are taking active steps towards grid connected power generation. Kenya Electricity Generating Company (KenGen) commissioned a 5 MW wind farm in Ngong Hills in 2010 while Lake Turkana Wind Power Company (LTWP) is in the process of developing a 300 MW wind farm in the Northern region of the country expected to come on stream by The undeveloped wind market potentials are estimated to be huge. Therefore, the government is putting in place necessary policies and incentives to encourage active private sector participation in Kenya s promising wind market. The feed-in tariffs gazetted in 2008 by the government and the Energy Act of 2006 assures investors a minimum of return of investments. At the same time, the government is committed to safeguard the interests of the investors and consumers alike.

9 Target Market Analysis: Kenya s Wind Energy Market 1 1 Status Quo of the Wind Energy Sector 1.1 Brief Wind Energy Sector Overview For many years, wind energy use in Kenya had been confined to small projects largely focused on mechanical water pumping and grain milling in remote areas without grid connection. Only 0.4 MW installed electric wind power capacity has been in existence until recently. This capacity was from two installations owned by KenGen in Ngong Hills and Marsabit. The country s electricity mix comprises of hydro, thermal and imports from Uganda. The country s installed power generation capacity (as of 2007/8) was 1310 MW against an effective peak capacity of 1267 MW. Hydro power provides the bulk of electric power in the country at 55 %. For close to a century, wind energy use in the country has primarily been used for water lifting and to provide other mechanical services. Records show by 2004, about 450 windmills had been installed in the country largely in ranches and remote communities institutions with one local integrator (Bobs Harries Engineering Ltd) dominating the market. Continued use of wind energy declined with the advent of oil fired internal combustion engines, which are flexible and more convenient to use. However, the rising cost of oil, is making exploitation of wind energy once again attractive, cheaper in the long run and convenient particularly in areas remote to grid and oil supply outlets. Preliminary wind power potential (density) in the country is estimated to be around 350 W/m 2 in several isolated regions and would therefore considered to be suitable for wind power development. The regions are: Malindi, Turkana, parts of Kajiado, Lamu, Marsabit and Ngong Hills. Even though mechanical use of wind energy has been in existence in the country for close to a century, electric wind power generation was introduced in the country in 1984 with a grant from the Belgium Government of two turbines: a 400 kw (effective 350 kw) installed at Ngong Hills and connected to the grid and a 200 kw turbine in hybrid with a diesel engine in Marsabit town. Current annual average output of wind energy in the country is 1.6 GWh, this output is primarily from Ngong installation, since the Marsabit turbine broke down a few years ago. But this figure is expected to go up from this year due to the coming on stream of the 5 MW KenGen owned Ngong Hills wind farm mid this year. Although wind energy has been in use to power mechanical equipment such as water pumps, it can play a major role in delivering electricity and non-electric services to segments of population currently un-served by the national grid. In the last few years there have been increased activities in the wind market signaling a spur in the growth of the sector. There are a number of wind energy projects being developed across the country or in planning stages. The shift towards wind energy has been precipitated mainly by dwindling hydro resource (due to climate change and human degradation of water towers), introduction of feed-in tariffs rates for wind power and increased overall country power demand. Currently, the most ambitious project put forward is the Lake Turkana Wind Project which is expected to generate about 300 MW by 2011 when it is completed. Other major projects in the pipeline are in Marsabit (100 MW) and Kinangop (40 MW). Figure 1 shows the existing and/or installed wind pumps, wind turbines and wind generators in the country. Most of the wind pumps have been installed in coastal, North Rift Valley and central regions of Kenya.

10 Target Market Analysis: Kenya s Wind Energy Market 2 Figure 1: Map Showing Installed Wind Pumps and Turbines Source: UNDP: Kenya Energy Atlas Major Market Segments The three main markets for wind energy opportunities in Kenya can be classified as: Grid Connected Electricity Generation There are only two wind projects currently connected to the grid as mentioned earlier despite the immense potential that exists. A lot of interest was generated in the last few years in the utilisation of wind power in the country due to incentives created by the government, such as power purchase tariffs and decreasing hardware costs. As the national grid expands and electricity demand in the country increases (projected to grow at 9 % annually) there is a need to increase the number of distributed power generation points along the grid. Wind farms could match this need at sites with good wind parameters. An advantage is that the majority of the potential wind farm sites in the country are in sparsely populated regions of the country and land use issues for the construction and operation of wind farms are unlikely to be a critical. But due to grid unavailability in these regions, project developers and investors will have to invest in new transmission lines to connect to the national grid.

11 Target Market Analysis: Kenya s Wind Energy Market 3 Table 1: Opportunities in Grid Connected Electricity Generation Kenya Opportunity 1: Grid connected electricity generation Estimated installed capacity Applied technology Competitiveness/ justification Organisational setup/operator models Planning Constraints/obstacles Recommendations for German companies 5.4 MW Wind turbines, battery banks, connection cables & accessories, transformers Payback from savings on the consumption of petroleum fuels Utility companies (KPLC, KenGen) Private investments 3+ year time horizon Financing availability Lack of precise wind data Look for opportunities in business development forums and local newspapers. Options: electricity generation; other energy-intensive manufacturing or processing Stand-alone Electricity Generation Most of the off-grid systems installed to date have been PV-wind hybrid systems. There are about small wind turbines installed across the country in individual s homes, commercial sites (such as telecommunication installations) and community institutions. Table 2: Opportunities in Stand-Alone Electricity Generation Kenya Opportunity 2: Stand-alone electricity generation Estimated installed capacity Applied technology Competitiveness/ justification Organisational setup/operator models Planning Constraints/obstacles Recommendations for German companies 50 kw Wind turbines, battery banks and accessories Payback from savings on the consumption of petroleum fuels Improve on government effort of rural electrification Private investments 2+ year time horizon Financing availability, lack of wind energy data Look for opportunities in development business and local newspapers Consider setting up CDM projects Partner with telecommunication firms

12 Target Market Analysis: Kenya s Wind Energy Market Water Pumping Wind pumps are more common than wind turbines in Kenya with two local companies manufacturing and installing the systems. To date installations are done in the range of units. The wind pump market is well established and there are many opportunities to be found especially in remote regions of the country. Table 3: Opportunities in Water Pumping Opportunity 3: Water Pumping Estimated installed capacity Applied technology Competitiveness/ justification Organisational setup/operator models Planning Constraints/obstacles Recommendations for German enterprises 450 windmills (2004) Wind mills fabricated locally Payback from savings on the consumption of petroleum fuels Efficiency improvement from using manual methods Private investments 2+ year time horizon Financing availability lack of wind data Look for opportunities in development business and local newspapers Options: CDM or voluntary market 1.3 Local Capacities Table 4 shows a list of expertise needed for realising wind energy projects and the extent to which the same is available in Kenya. Table 4: Existing Capacity for Studies and Works (Wind Energy) Kenyan private firms or individuals International firms present in Kenya Government institutions Partner companies -/+ - -/+ Availability of qualified human resources Contact points in local wind energy associations Local suppliers for installations of wind turbines Local operation and maintenance companies /+ - -/+ -/ / not available; -/+ limited; + can be found; ++ there is choice

13 Target Market Analysis: Kenya s Wind Energy Market 5 A National Wind Atlas 1 prepared for the Solar and Wind Energy Resource Assessment (SWERA) Programme by Risø National Laboratories of Denmark using a meso-scale climate model with a 5 km by 5 km grid is available and is of help to investors and project developers alike. The atlas was used to prepare shape files with isolines for average wind speeds and power density. This project was financed by the Ministry of Energy (MoE) and United Nations Environment Programme (UNEP) to promote investments in wind energy by equipping the investors with necessary wind data. There is an ongoing study commissioned by the government to improve the National Wind Atlas using more precise data on wind regimes. 2 Market Potential 2.1 Overall Sector Outlook There has been sharp population growth coupled with economic growth in the country in the past decade which has led to a tremendous growth in energy demand, especially in electrical power. The electricity demand is projected to grow from 5035 GWh in 2007/08 to 8561 GWh in 2013/14. Table 5 shows future potential of electricity generation in the country for the next ten years. As seen in the table, wind energy development within the ten-years-period will be the highest. Table 5: Investment Potential for Grid Connected and Off-Grid Electricity Generation Potentials sectors Techno-economic potential (physical: MW) Realisable potential in MW in 10 years Hydro 3, Biomass Wind 6, Solar TOTAL 9,237 1,007 Quelle: Agence France Development (AfD): Report on Energy Efficiency and Renewable Energy opportunities in East Africa, Current estimated levels of wind resource in Kenya were determined from wind speed data gotten from 35 meteorological stations spread all over the country. The international SWERA project produced very high resolution maps for average wind speeds and power densities at 50 metres above the ground level for the whole country. A geospatial mapping identified locations for further measurements and validation for investment purposes. Figure 2 shows the wind speed data for the country. The North-West region of Kenya shows the highest wind speeds. Other scattered areas with exploitable potential are central, coast and South-West regions of Kenya. Wind energy power generation can be used to complement hydroelectric generation. 1 Further Information:

14 Target Market Analysis: Kenya s Wind Energy Market 6 Figure 2: Kenya's Wind Resources; Mean Wind Speeds (m/s) Source: UNDP: Kenya Energy Atlas The technical and geographical potential for off-grid wind energy in the country is relatively high. The known wind resource is good and 75 % of the population is currently off-grid. However, the economic potential for exploitation of wind in off-grid areas is limited because income in off-grid areas tends to be relatively low. In rural Kenya, wind energy has primarily been used for water lifting since the beginning of the 19 th century but its use has declined with the advent of oil fired internal combustion engines. These are more convenient and flexible to use. However, with the rising cost of oil, the exploitation of wind energy is becoming increasingly more attractive particularly in areas remote from the grid and oil supply outlets. For example, an isolated hybrid wind-diesel power station at Marsabit district headquarters was commissioned in However, the 200 kw unit is out of service since The installation of a larger turbine with a 500 kw capacity was tendered for in September Modern wind power projects There are a few grid connected projects under way in Kenya. The largest is the Lake Turkana Wind Power Project which intends to inject 300 MW to the grid. The project involves the construction and operation of wind farm in Marsabit district, near Lake Turkana in the North-Western part of Kenya. The wind farm will comprise 367 turbines of 850 kw capacity each to maximise the use of high wind speeds in the Turkana low jet stream corridor. Beside Lake Turkana Wind Power Ltd (LTWP), Aeolus

15 Target Market Analysis: Kenya s Wind Energy Market 7 and its partner have started further projects in Kenya by developing wind farms in Kinangop and Ngong which will ultimately have a capacity of 120 MW. 2.2 Undeveloped Market Opportunities Kenya s economy has been on the upward trend over the past years and although this is mainly visible in urban areas through large-scale construction, infrastructure development and the growth of small- and medium-sized enterprises (SMEs), rural areas have also seen positive development as well. In the government plans for new energy generation by 2012, wind energy is expected to add additional 800 MW to the total installed national capacity. Since the private sector is to deliver this capacity, this offers an opportunity to investors to develop projects to meet the political targets. As mentioned before, there is a substantial undeveloped market in rural areas that offers opportunities for new projects. Only about 15 % of Kenya s population currently has access to electricity. Wind energy could be used in stand-alone/distributed generation to power rural electrification projects, water pumping, grain grinding etc. 3 Wind Energy Specific Regulations and Framework 3.1 Policies and Regulations To attract private sector capital in wind resource electricity generation, the Ministry of Energy (MoE) established feed-in tariffs for electricity generation from wind energy resource. USD 0.09 per kwh is set as the maximum firm power tariff for electrical supplied to the grid operator at the interconnection point. This tariff applies to individual wind power plants (wind farms) whose effective generation capacity does not exceed 50 MW. The tariff applies to the first 150 MW capacity of wind power plants developed in the country. The tariff shall apply for 15 years from the date of the first commissioning of the wind farm. Table 6: Tariff Overview Technology type Plant capacity (MW) Maximum firm power tariff (USD/kWh) at the interconnection point Maximum non firm power tariff (USD/kWh) at the interconnection point Wind power (single wind farm) Any individual capacity greater than 50 MW 51 and above Tariff to be negotiated on commercial basis Tariff to be negotiated on commercial basis The Energy Act 2006 provides the following promotional targets for renewable energy, energy efficiency and energy conservation: It provides an enabling framework for the efficient and sustainable production, distribution and marketing of biomass, solar, wind, small hydro, municipal waste, geothermal and charcoal. It promotes the development of appropriate local capacity for the manufacture, installation, maintenance and operation of basic renewable technologies promoting international cooperation on programmes focusing on renewable energy sources.

16 Target Market Analysis: Kenya s Wind Energy Market 8 It harnesses opportunities offered under Clean Development Mechanism (CDM) and other mechanisms including, but not limited to, carbon credit trading to promote the development and exploitation of renewable energy sources. It promotes the utilisation of renewable energy sources for either power generation or transportation. In addition to the above, in order to encourage private sector participation in harnessing renewable energy sources the government intends to undertake further prefeasibility and feasibility studies on wind regimes and solar insolation. The government also intends to formulate and enforce standards and codes of practice on renewable technologies to safeguard consumer interests, disseminate information on renewable energy systems to create investor and consumer awareness on economic potential offered by these alternative sources of energy, allow duty-free importation of renewable energy hardware to promote widespread usage and provide tax incentives to producers of renewable energy technologies and related accessories to promote their widespread use Grid Connection Procedure In addition to the Energy Bill, the country s Grid Code is a relevant policy document. It sets out existing standards and practices in the Kenyan electricity supply industry. The Grid Code is designed to facilitate the development, operation and maintenance of efficient, coordinated and economical electric power system in Kenya. The Grid Code seeks to provide a transparent regulatory framework, to ensure non-discriminatory access to the transmission and distribution networks, and to offer technical specifications and procedures for electricity supply. Would-be suppliers must follow the steps outlined below: 1. Fill out application forms attaching accompanying documents on financial and technical capability and details of proposed undertaking. 2. Provide a non-refundable application processing fee of KES 10,000 (USD 135). 3. Publish notice on intended project in the print media days before the date of application to invite the public to raise concerns/objections. Once a supplier has applied for a licence, the Board is to acknowledge receipt of application within seven days and it may hold public hearings regarding objections to the granting of a licence. The application is to be processed within 180 days, and the applicant is to be informed on terms and conditions and fees required for granting of the licence during the application processing period Government Institutions The main institutions associated with the power sector are: The Kenya Electricity Generating Company (KenGen) generating 80 % of the electricity consumed in Kenya. The Kenya Power and Lighting Company (KPLC) being responsible for the transmission and distribution of electricity across the country. The Ministry of Energy (MoE) being responsible for developing and implementing energy policies. The Electricity Regulatory Board (ERB) being responsible for reviewing electricity tariffs and protecting the interests of electricity customers. The Rural Electrification Authority (REA) a relatively new institution, being responsible for the management of the rural electrification programme. REA is the main driver in realising the electrification targets set by the government for the period 2010 to 2020.

17 Target Market Analysis: Kenya s Wind Energy Market Challenges The exploitable wind energy sites in Kenya face several challenges: Site selection: Wind potential assessments are site specific and time consuming. This means that wind energy development requires large initial investment for careful wind prospecting. Good equipment and quality work is needed, both being cost-intensive. Updated wind resource map for Kenya: The Ministry of Energy (MoE) has made some progress in this area. Suppliers of wind turbines often have to rely on meteorological data and customers observations to determine whether a project site is viable. Such information is misleading and could lead to installation of poorly performing or non-performing systems. Low awareness: Most owners of wind systems have had some previous experience or knowledge and the majority of wind turbine installations are done by the user. Apart from these first movers, there is generally low public awareness for wind energy. Distance from transmission lines: Areas in the North that have the highest potential for wind energy generation are far from existent transmission lines, making grid connection expensive. Local capacities: Technical local capacities for grid integration and system management are poorly developed due to the early stage of the market development for grid-connected systems. Activities for capacity development are necessary. 3.2 Applicable Public Sector Support and Financing Mechanisms Due to the low level of engagement in energy by the private funding market, the Government of Kenya, through the Rural Electrification Fund (REF), and in partnership with development partners, remains the largest financier of energy projects in Kenya. The Prime Minister s Office, in close collaboration with the MoE, announced a Green Energy Fund. It was announced that the Green Energy Fund, which targets the development of 2000 MW of clean energy, would support wind, hydro, geothermal and clean coal. Solar energy was not specifically mentioned. Currently, the fund developers are consulting with members of the energy sector to identify potential projects. 3.3 Campaigns and Other The MoE set up the Rural Electrification Authority (REA) whose main objective is to electrify priority loads by Priority loads consist of district headquarters, trading centres, secondary schools and health centres. REA is providing a reasonable scale-up programme in order to reach 12 % of Kenya s rural households within five years ( ) and 33 % within ten years ( ). To promote investment in wind energy generation, the MoE recently completed preparation of a National Wind Atlas. In addition, the government is promoting the development of wind-diesel hybrid systems for electricity generation in the context of the rural electrification programme in areas remote from the national grid.

18 Target Market Analysis: Kenya s Wind Energy Market 10 4 Business Partners and Competitors 4.1 Overview of Wind Energy Key Market Players Table 7: Kenya's Wind Energy Market Players Full name Core business and market position Products Location Turnover Number of employees Contact details Project developers Bobs Harries Engineering Ltd Wind water pumping. Leading in Kenya Wind pumps Thika Installed 414 wind pumps 29 Mike Harries Bobs Harries Engineering Ltd P.O. Box 40, Thika, Kenya Tel: (+254) (0) bobs@africaonline.co.ke Craft Skills E.A.Ltd Wind electricity generation Wind turbines, wind generators Nairobi 100 kw installed power 20 Simon Mwacharo Guyo Nairobi, Kenya Tel: (+254) (0) / Mob : (+254) (0) simon@craftskills.biz Programmes Rural Electrification Authority (REA) Rural electrification by the MoE Statistical information and logistical support Nairobi Chief Executive Officer Rural Electrification Authority P.O. Box: Nairobi, Kenya Tel: (+254) (0) / Mob: (+254) (0) info@rea.co.ke

19 Target Market Analysis: Kenya s Wind Energy Market 11 Consultant Firms Que Energy Ltd Renewable energy experts Country data Nairobi Daniel Theuri Tel: (+254) (0) Info@que-energy.com ESF Consultants Environmental management consultants Technical solutions in environmental and energy sector Nairobi ICN Toshiba Hse Menelik Rd, Kilimani, P.O. Box, , Nairobi, Kenya. Tel: (+254) (0) info@esfconsultants.org Lake Turkana Wind Power Ltd Installation of turbines Nairobi Carlo Van Wageningen P.O. Box Nairobi, Kenya Tel: (+254) (0) cvw@ltwp.co.ke Internet: Energy for Sustainable Engineering (Also known as CAMCO) Consultants Stephen Mutimba Muringa Road off Elgeyo Marakwet Road P.O. Box Nairobi, Kenya Tel: (+254) (0) Fax: (+254) (0) Others Kenya Renewable Energy Association Advisory and coordination Covers wind, solar, small hydro and biomass fields Nairobi Edward Nyaga P.O. Box Nairobi, Kenya Tel: (+254) (0) Mob: (+254) (0) / Kenya Wind Industry Association Nairobi Telesales Solar Retailers Nairobi Mr Abdullah Bruce House, Kaunda Street P.O. Box Nairobi, Kenya Tel: (+254) (0) / Fax: (+254) (0)

20 Target Market Analysis: Kenya s Wind Energy Market Wind Energy Projects Overview Kenya Electricity Generating Company (KenGen) operates the 0.4 MW wind turbines in Ngong. The Marsabit wind turbine has been out of commission since Ministry of Energy (MoE), Kenya Power and Lighting Company (KPLC) and the Government of Kenya financed the project. Bob Harries Engineering Ltd has installed a wind pump to supply water for livestock without using the main grid power. The installation was in Ol pejeta ranch in Nanyuki. 4.3 Highlights in Local Wind Energy Market Development The establishment of Kenya Renewable Energy Association (KEREA) and Kenya Wind Industry Association will enhance the development of wind energy in the country. These establishments will provide financial and site specific information to investors and developers. Currently, two wind generating plants with a total capacity of 545 MW have been installed by KenGen. Additional wind generation projects with a total installed capacity of 625 MW have been proposed for implementation as shown in the table below. Table 8: Proposed Implementation of Wind Power Plants Plant Capacity (MW) 1 Lake Turkana Kinangop 60 3 Ngong Osiwo Ngong 60 5 Green Ngong 60 6 Daewoo Ngong 30 7 KenGen 15 TOTAL 625 Lake Turkana Wind Power Ltd (LTWP) plans for example to produce 300 MW by 2012 by harnessing wind power in Northern Kenya. This generation could meet about a quarter of the country s total energy demand. African Development Bank (AfDB) has indicated it would finance 30 % of the cost and the rest from locally syndicated bank loans and international investment banks. The company plans to put up 367 wind turbines that will each generate 850 kw. In another project which is not listed above Craft Skills (EA) together with Danish experts plan to develop 20 wind power projects throughout Kenya. The projects are to be funded by UNEP through Danish Institute of Technology.

21 Target Market Analysis: Kenya s Wind Energy Market 13 References AfD. Report on Energy Efficiency and Renewable Energy opportunities in East Africa EAC-EASUP. National Baseline and Workplan for Kenya. Final Country Report. April GTZ: Business Guide Kenia, Eschborn KPLC Annual Report Ministry of Energy. Feed-in-Tariffs for Renewable Energy Resources Generated Electricity. 1st Edition, May UNDP: Kenya Energy Atlas. Energy for Sustainable Development Africa Wind Atlas Analysis and Application Program (WAsP): Wind Energy Atlas. (July 2010).

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