Professional Documents
Culture Documents
ON THE RISE:
Other highlights
12 Energy Conservation
03 Editorial
Gains and Benefits
Editor
Antoinette Kamau
Editorial Committee
Antoinette Kamau
Engineer Joseph Oketch
Edward Kinyua
Kimani Muhoro
Laura Wanyika
Godfrey Mwaloma
Writers
Godfrey Mwaloma
Eliakim Mwalo 09 Energy Retreat
Contributors
Eng. Buge Wasioya
Eng. Joseph Oketch
IN THIS ISSUE
Welcome to the November 2014 edition of to a safe, market-driven and investor-friendly
the Energy News, a quarterly e-newsletter energy sector. From the consumer standpoint,
published by the Energy Regulatory we have an article on how to use LPG gas safely.
Commission of Kenya.
The Energy News is not all business though. As
The Energy News e-newsletter highlights the its said, all work and no play ...
energy sector from a regulators perspective.
We are reminded to take adequate water to
We strive to develop relationships with boost our health, but did you know that too
stakeholders for the benefit of the energy much of it is harmful? Theres a fascinating
sector as expressed in the symmetrical model article on Page 19 about hyponatremia.
of communication. Symmetrical communication
ERC is active on social media after a revamp of
utilizes dialogue and negotiation to promote
our Facebook and Twitter outlets. Both of
mutual understanding between the organization
these accounts are monitored continuously and
and its stakeholders. We are continuously
there is already vibrant conversation with
engaging with legislators, oil marketing
stakeholders on various aspects of the energy
companies, energy utilities, consumers and
sector.
policy makers in line with our customer-centred
orientation.
Have a pleasant reading!
The countrys energy sector is so vibrant that
Antoinette Kamau
something new is happening almost every day.
EDITOR
The Energy News e-newsletter brings you the
stories that show the regulators contribution
To this end, an online portal has been established to collect data on private sector electricity needs. Through the
portal, large and medium scale users of electricity are requested to provide information on expansion plans that will
require additional power.
The Investor Power Plan ties in with Project 5000+ MW, an initiative launched in September 2013 to fast track an
increase in Kenya's generating capacity by 5,000MW within 40 months.
T he Kenya Electricity Grid Joseph Oketch, Senior Manager for Kenya National Electricity
Code - developed in 2008 - Consumer Affairs at ERC. Transmission Code. This is to reduce
is a primary technical document of It has now become necessary to the bulkiness of the Grid Code and
the electricity supply industry. The revise the Grid Code in response to make implementation easier.
document specifies the technical new technologies and because of the Eng. Oketch, who is also ERCs
requirements for planning, massive expansion of Kenyas liaison officer with the Eastern
connection, operation and use of the electricity network as envisaged in Africa Power Pool (EAPP) says
National Power Grid. Project 5000+MW. reforms to the Grid Code will foster
In turn, the National Power Grid The Grid Code needs to regional integration of the various
refers to the network of incorporate technological national grids. For instance, there
transmission systems, distribution developments and improved industry are plans to connect Kenyas
systems and connection points for best practices, says Eng. Oketch. In electrical grid with that of Ethiopia
the movement and supply of addition, there is need to delink the and Tanzania through a 400KV
electrical energy from generating technical requirements of the Grid transmission system. Additional plans
network, the technical requirements, put under separate codes or as projects, Eng. Oketch describes the
planning procedures, tariff chapters of the Kenya Electricity challenges to be anticipated: Our
methodologies and internal Grid Code namely; Kenya National interconnected electricity grid
regulations, explains Engineer Electricity Distribution Code and system challenges are bound to shift
Mr. Nicholas Mbwanji (left) with ERC Mr. Mbwanji (right) tours Strathmore At the Ngong Wind Farm with KenGen
Director General Eng. Joseph Nganga. Universitys solar electricity system. engineers and ERC staff.
A board member of 10,000MW by 2025, hence the dust on the surface can reduce
Tanzania's Energy and interest in renewable energy. The electricity output by as much as 20%.
Water Utilities Regulatory Authority biggest challenge lies in attracting The university has a weekly cleaning
(EWURA) was in Kenya early October investors, licensing and balancing the schedule to ensure optimal output
with a specific interest in generating various stakeholder interests, said from its solar panels.
electricity using renewable energy. Mr. Mbwanji. Mr. Mbwanji also went for a tour
During his three day visit to ERC Director-General Eng. Joseph of KenGen's Olkaria Geothermal Field
Kenya, Mr Nicholas Mbwanji met Ng'ang'a gave Mr. Mbwanji an at Naivasha. Olkaria was buzzing with
senior management of ERC and toured overview of Kenya's own plans of activity as KenGen contractors
renewable energy sites at Strathmore raising electricity generating capacity installed the piping systems and
University, Olkaria Geothermal Field by 5,000MW through Project 5000+ equipment that is expected to
and Ngong Wind Farm. Mr. Mbwanji MW. A lot of the new generating increase geothermal generating
was very impressed at Kenya's capacity will come from renewable capacity by 280MW come December
government to invest in renewable tariffs are competitive enough to engineers at Olkaria. Human capital is
energy, he said, this is a very attract investors into the power very important in developing a
important lesson that I will take back sector while keeping energy prices as renewable energy subsector, he
several decades, the same is not the Mbwanji visited Strathmore Wind Farm whose installed capacity is
case in Tanzania. Apart from a few University to learn how solar energy is 25MW. The turbines have automated
hydroelectric stations, Tanzania helping cut energy costs. At 600kw, systems designed to optimize
largely relies on thermal power Strathmore University's solar electricity generation by adapting to
generation. However, unlike Kenya, photovoltaic installation is among the changing wind speeds and direction.
Tanzania has vast reserves of fossil largest in Kenya. Many of the wind turbines at Ngong
fuel including coal and natural gas. An important lesson learnt at Hills are new, having been
T he Energy
Commission
Regulatory
provides
balance between the viability needs
a
ERC attended the
alongside state corporations under
retreat possible. Power purchase in Kenya
are among the best in the world as
the Ministry of Energy and there is virtually no risk of default.
of energy investors and the desire of Petroleum. Energy and Petroleum Other countries are already learning
consumers for affordable energy, Cabinet Secretary Davis Chirchir, from Kenyas model because it is
Members of the National Assembly Principal Secretary Joseph Njoroge attractive to investors.
learnt in September. and other Ministry officials were Mr. Chirchir assured the MPs of
ERC is meant to be a market- present at the retreat. The a 70% reduction on the fuel cost
enabler, intervening whenever there Parliamentary Departmental element of electricity prices as
is a failure in free market Co m m i tt e e was led by its more geothermal power gets into
mechanisms, Director General Chairperson, Hon. Jamleck Kamau. the national grid.
Joseph Nganga told members of the In its presentation, ERC Chairman of the Departmental
Parliamentary Departmental demonstrated that petroleum prices Committee on Energy,
Committee on Energy, Information and electricity tariffs in Kenya are Communication & Information, Hon.
and Communication during a retreat very competitive when compared to Jamleck Kamau spoke of the
held at Mombasa on 12th September. those of other countries that do not excellent relationship between the
The retreat was organized to subsidize energy. Committee and the Ministry of
enable members of the Committee Petroleum prices and electricity Energy & Petroleum.
better understand ongoing tariffs should reflect the cost of At the end of the day-long
developments in the energy sector, production and supply otherwise retreat, there was agreement that
including the governments plan to there would be no incentive for similar retreats be held in future to
increase national electricity investment in the energy sector, enhance the already good
production to 5,000MW by 2018. explained ERCs DG, Joseph relationship between the Ministry
In addition, the MPs were very Nganga. of Energy and Petroleum, energy
concerned with the prices of Cabinet Secretary Davis Chirchir sector state corporations and
petroleum and electricity. Another said the energy sector should be Parliament.
point of interest was the price tag left to self regulate as much as
for new electricity connections.
L ast September, Professor Maina Maringa sat in a room with close to 200 other people mostly younger than
him. The group was sitting for written interviews administered by ERC as part of the application process for
Solar Photovoltaic (Solar PV) licenses.
Prof. Maringa has over 30 years means that even those professionals
T2: Entitles the holder to carry out solar PV system installation work for medium systems or multiple
batteries which may include an inverter.
T3: Entitles the holder to carry out solar PV system installation work for advanced projects, including grid
connected and hybrid systems.
V1: Entitles the holder to design, distribute, promote, sell or install solar PV systems, in which case the
licensee shall be required to be, or have in his employment a class T2 technician.
V2: Entitles the holder to manufacture or import solar PV systems or components, in which case the
licensee shall be required to be or to have in his employment a class T2 technician.
Energy conservation:
Economic gains and environmental benefits
E nergy conservation means yield direct savings on energy costs. account for 22% and 9% respectively
preventing energy from From a national stand point, reduced of national energy consumption, wood
being wasted through such actions as imports of energy resources have a fuel and other biomass account for
turning off lights when not in use and positive effect on national balance of 68%. Access to electricity remains
by utilizing technology that improves payments. Optimized use of the low, with just about 18% of
energy efficiency. countrys power stations defers the households connected to electricity.
need to increase generating capacity. Energy consumption could drop
Energy consumption is increasing
due to economic growth, industrial drastically if subjected to efficiency
Environmental impacts
development and changing consumer and conservation measures. 26% of
The environmental benefits of
preferences. Most of the energy electricity users in Kenya do not
energy efficiency are clear: a
consumed worldwide still comes from apply any efficiency conservation
reduction in energy consumption that
fossil fuels such as oil, coal and methods as is the case with 50% of
lowers the emission of pollutants and
natural gas. Consumption of fossil wood fuel users and 27% of charcoal
greenhouse gases.
fuel results in emissions of carbon users. Just about 28% of electricity
The Electric Power Market accordance with licences and permits sub-sector, in coordination with
Structure issued to it by the Commission. The other statutory authorities;
Electricity generation in Kenya is Commission also approves the retail enforce and review regulations,
liberalised with several licensed tariffs charged for the supply. codes and standards for the
electric power producers (see table). sub-sector;
The net electrical energy from Regulation of the Electricity ensure compliance with
the power generating plants is Supply Industry conditions of licenses or
bought by the Kenya Power and The Commission is responsible permits;
Lighting Company (KPLC) through for economic and t e c h n ic a l
set, review and adjust electric
power purchase agreements (PPAs) regulation of the electric power sub-
power tariffs and tariff
approved by the Commission. sector and for this purpose, it has
structures, and investigate
The energy is then conveyed over powers to:
tariff charges, whether or not
transmission systems owned by KPLC issue, renew, modify, suspend a specific application has been
or the Kenya Electricity or revoke licences and permits; made for a tariff adjustment;
Transmission Company (KETRACO), propose to th e Cabinet approve electric power
both of whom are licensed by the Secretary regulations which purchase and network service
Commission to provide transmission may be necessary or expedient contracts for all persons
services. for the sub-sector; engaging in electric power
Finally, KPLC carries out formulate, enforce and review undertakings;
distribution and retail supply of the environmental, health, safety examine and approve meters
electrical energy to customers in and quality standards for the used or intended to be used for
Full details of how one can file a complaint against a licensee are set out in the Energy (Complaints and Dis-
putes Resolution) Regulations, 2012.
highly flammable liquid which can be says ERC Director General Joseph
pressures LPG is a gas but as supplied of illegal LPG operators who fill and
this pressure is reduced, for example brands without authority from the
when the control valve is opened, the brand owners. The illegal operators
liquid starts to boil and gas is evolved get LPG cylinders get from
250 litres of gas. Butane is less outright theft of cylinders from LPG
source that could reduce over marketing companies.
volatile than propane.
dependence on wood fuel and
Current annual LPG consumption in The Energy Act 2006 provides a
charcoal, hence contribute to
Kenya is estimated at about 90,000 licensing framework that requires
environmental sustainability.
metric tonnes which roughly individuals interested in operating
Though ERC currently does not LPG business to obtain licenses from
translates to a per capital
have a mandate to regulate the the Energy Regulatory Commission
consumption of 2.25 kg which is
prices of LPG, the Commission is (ERC). There are various licenses for
below Africas average per capita
eager to see that LPG is conveniently LPG imports, exports, wholesale,
consumption rate of 3 kg. Demand
available to the public at an transport, storage and filling of
for LPG in Kenya is expected to
affordable price. To this end, ERC cylinders. On its part, ERC has the
reach 200,000 metric tonnes after
plans to publish the prices of LPG mandate to stop and prosecute
challenges in the current supply chain
sold by various companies and unlicensed operators.
are smoothened out.
compare them with recommended
The government has Kenyan consumers need to ensure
prices based on a model currently
their own safety by buying LPG only
acknowledged the importance of LPG being developed. This will empower
from licensed retailers.
as an alternative household energy consumers in their choice of cooking
The following safety measures are designed to save Kenyan taxpayers from buying substandard LPG products
All LPG dealers should have a licence displayed at their place of business at all times.
An official receipt with the cylinders serial number and weight should be clearly indicated upon purchase.
For the safety of consumers, retailers should check the test date on each cylinder making sure it doesnt exceed 8
years.
Causes
Drinking too much affects the
bodys sodium levels. One of
sodiums jobs is to balance the
fluids in and around your cells.
Drinking too much water causes
an imbalance, and water moves
from your blood to inside your
cells, making them swell. Swelling
of the cells is serious and if it
happens in the brain then
immediate treatment should be
sought.
Visit: http://www.renewableenergy.go.ke/
The Energy News Quarterly is published by the Energy Regulatory Commission of Kenya (ERC).
Players in the energy industry, consumers, policy makers and researchers are encouraged to
participate in the production of this newsletter by sending articles, photos and news tips. Contact
the editors at ERC Communication and Public Affairs Department (CPA).