Kenya Energy Situation

Overview

Republic of Kenya
Flag of Algeria.png	Location Algeria.png
Capital	Nairobi (1° 16′ 0″ S, 36° 48′ 0″ E)
Official language(s)	Swahili, English
Government	Semi-Presidential Republic
President	Mwai Kibaki
Prime Minister	Raila Odinga
Total area	580,367 km2
Population	40,046,566 (2010 estimate) 38,610,097 (2009 census)
GDP (nominal)	$32.417 billion (2010 estimate)
GDP Per capita	$887
Currency	Kenyan shilling (KES)
Time zone	EAT (UTC+3)
Calling code	+254

Energy Sector

The energy sector in Kenya is largely dominated by petroleum and electricity, with wood fuel providing the basic energy needs of the rural communities, urban poor, and the informal sector. An analysis of the national energy shows heavy dependency on wood fuel and other biomass that account for 68% of the total energy consumption (petroleum 22%, electricity 9%, others 1%). Access to Electricity (15% of households) MOE study 2002.

Kenya has an installed capacity of 1.48 GW, while about 57% are hydro power, about 32% are thermal and the rest is divided by geothermal and emergency thermal power. Solar PV and Wind power play a minor role with less than 1%.

Due to increased poverty, there is a significant shift to non-traded traditional biomass fuels. The proportion of households consuming biomass has rose to 83% from 73% in 1980.

Charcoal, firewood, paraffin, and LPG continue to be the main sources of cooking fuel. At the national level 68.8% of the households use firewood as the main cooking fuel with 84.4% being in the rural areas. Many are engaged in production, transformation, transportation and sale of wood and charcoal, making it one of the most important sources of paid livelihood. As a result woody biomass is diminishing due to poor management and utilization in unsustainable ways. Government ministries are supporting in one way or the other the sustainable production of energy crops, trade of charcoal and the dissemination of improved cooking stoves.

Problem Situation

Fuelwood demand in the country is 3.5 million tonnes per year while its supply is1.5 million tonnes per year. The massive deficit in fuelwood supply has led to high rates of deforestation in both exotic and indigenous vegetation resulting to adverse environmental effects such as desertification, land degradation, droughts and famine among others. It is in an effort to reduce these problems that PSDA through collaboration with other Development Partners initiated “Promotion of Improved Energy Stoves” in January 2006. Nevertheless, a high population share still uses firewood for cooking – more than 80% of the population use traditional three stones technology for the same.

In the first phase of the EnDev programme, GTZ has disseminated a significant amount of improved cook stoves (ICS). In addition GTZ promoted the uptake of ICSs by institutions. However, many people without improved stoves still do not know where to get them although they express desire to acquire them. Current improved stove production centres do not meet the demands of the new project areas, especially in the arid and semi-arid regions which need them more than any other regions in the country. This has largely contributed to unsustainable harvesting of biomass with negative impacts on the environment and poor health among users due to excessive inhalation of noxious gases. Up-scaling of improved cook stoves is therefore necessary.

Renewable Energy

The record of the national utility Kenya Power and Light Company (KPLC) in rural electrification is very poor, with only 0.94% of rural households connected in 2002 [Karekezi et al, 2004]. Between 1993 and 2001 the number of rural households increased by 1.4 Million, whilst the number of rural households connected to the grid increased by only 24,000. Hence, the rate of grid-based rural electrification is far below the rate of increase in potential customers, despite a levy on electricity bills to fund it. Innovative approaches to off-grid electrification are helping to make up for the lack of grid-based rural electrification.

Biomass

For information on challenges and issues affecting the exploitation of biomass in Kenya, click here.

Hydropower

Hydropower is the single largest generation source for grid electricity in Kenya providing some 677 MW of the total installed grid capacity. As of 2007, a 60 MW hydro generation plant was being developed on the Sondu Miriu with a further 20 MW planned for 2008. With the exception of Turkwell Gorge (Rift Valley) and Sondu Miriu (Lake Victoria) some 470 MW or 70% of the total developed hydro capacity lies on the Tana River alone, a conspicuous over reliance.

Kenya’s drainage system consists of five major basins, Lake Victoria, Rift Valley, Athi and coastal area, Tana River, Ewaso-Nyiro and North-Eastern. These basins contain the bulk of the country’s inland hydro resources. The total hydropower technical resource is estimated to be about 6 GW, with half this potential being attributed to small rivers. The hydro resources lie in areas of high domestic energy demand.

The hydroelectric power potential of economic significance available for large scale power development is estimated to be 1,500 MW of which 1,310 MW is for projects of 30 MW or bigger. Of this, 434 MW has been identified in the Lake Victoria basin, 264 MW in the Rift Valley basin 109 MW on Athi River basin, 604 MW on Tana River basin and 146 MW on Ewaso Ngiro North River basin.  On the Tana River and Ewaso Nyiro basins, a further 420 MW have also been identified.  However, the projected generation costs for these currently exclude them from the least cost power development plan (LCPDP).

Pico hydro community mini-grids

Pico hydro is generally classified as water powered generating systems that produce up to 5kW of electrical power. In Nepal there are more than 600 pico hydros serving a total of more than 10,000 households. In Kenya, three schemes have been installed since 2001, which together supply 325 households. The first two schemes were part-funded by the European Commission, though the communities paid for the distribution systems, house wiring components and contributed free labour and trees to make distribution poles. The third scheme, for 150 households, was carried out without subsidy or grant by a small engineering company that had been involved in the earlier projects. Technical details of the first two projects are presented in case studies [Maher2002]. The electricity is distributed at 230 Volts single phase and restricted to houses that are within 1km of the turbine. Each household subscribes to one or more 10 Watt ‘light packages’ which are sufficient for one 8 Watt Compact Fluorescent Lamp (CFL) and a radio, for which they pay US$0.65 per month per package. This is used to pay a member of the community who operates and maintains the system andcontributes to a repair fund.

Pelton turbine assembly in Kenya (Maher)

Whilst the power supplied to each house is very similar to the peak output of a Solar Home System (SHS) the actual energy supplied is significantly higher as the power output is continuous unless there is a prolonged drought. A cost comparison between pico hydro and SHS gives a cost of $0.15 per kWh for pico hydro compared to more than $1 for SHS [Maher et al, 2003]. The power is currently used for lighting, radios, small TVs and mobile phone charging. At one site a cordless drill is recharged and loaned to community members. The shaft power of the turbine could be used for agro-processing, though this application has not been developed. Pico hydro is mainly limited to the upland areas of Kenya with moderate or high rainfall, such as the Aberdare and Kirinyaga districts, as this is where most suitable sites exist. These upland areas experience more cloudy weather, including three months with almost continuous cloud called the Gathano season during which SHS produce very little power. Locally implemented pico hydro is cheaper than SHS and is a more versatile source of power, it also relies less heavily on imported equipment.
While the Government of Kenya deliberately seeks reforms in the energy sector by encouraging private sector ownership and implementing policies that support diversification of energy sources, several specific steps to off-set current vulnerabilities have yet to be implemented. Several key instruments supporting increased resilience in the energy system such as the availability of flood maps, existence and enforcement of power plant silting and construction guidelines and emergency plans to react to extreme weather events are not available. Even though the country depends heavily on hydropower systems for electricity supply, there are no national plans for optimising hydropower plants operation under alternative future flow regimes.

Despite the fact that traditional biomass dominates the energy landscape, little or no budget is provided for research, development and dissemination for heat and drought resistant crops, biofuels and modern biomass energy use. While some progress has been made in disseminating efficient wood and charcoal stoves, more needs to be done to building more diversity and strengthening the resilience of the energy system.

For information on challenges and issues affecting the exploitation of hydropower in Kenya, click here.

Solar energy

Kenya has high insolation rates with an average of 5-7 peak sunshine hours (The equivalent number of hours per day when solar irradiance averages 1,000 W/m²). Only 10-14% of this energy can be converted into electricity due to the conversion efficiency of PV modules.

Stand-alone PV systems represent the least-cost option for electrifying homes in many rural areas, especially the sparsely populated arid and semi-arid lands. “Solar home systems” (SHSs) are practical for providing small amounts of electricity to households beyond distribution networks. The systems typically consist of a 10 – 50 Watt peak (Wp) PV module and a battery sometimes coupled with a charge controller, wiring, lights, and connections to small appliances (such as a radio, television, or mobile phones). Other PV applications include water pumping, telecommunications and cathodic protection for pipelines, power supply to off-grid non-commercial establishments and off-grid small commercial establishments.

Kenya has one of the most active commercial PV system market in the developing world, with an installed PV capacity is in the range of 4 MW. An estimated 200,000 rural households in Kenya have solar home systems and annual PV sales in Kenya are between 25,000-30,000 PV modules. In 2002, total PV sales were estimated to have been 750 kWp and have grown by 170% in 8 yrs, even without government intervention or policies to promote the uptake of PV technology.

In comparison, the Kenya’s Rural Electrification Fund, which costs all electricity consumers 5% of the value of their monthly electricity consumption (currently an estimated 16 million US$ annually), is responsible for 70,000 connections. With access to loans and fee-for-service arrangements, estimates suggest that the SHS market could reach up to 50% or more of un-electrified rural homes.

Since 2006-2007, the Ministry of Energy has been actively promoting use of solar energy for off grid electrification. In particular, it has funded the solar for schools programme and is targeting to extend this to off grid clinics and dispensaries.  

Grid connected PV systems covering an area of 15-20 km² (3% of the Nairobi area) could provide 3801 GWh of electrical energy a year, equivalent to the total grid electricity sales for Kenya in 2002-2003. The costs, however, are prohibitive.

Private sector led electrification using solar home systems

An estimated 200,000 rural households in Kenya have solar home systems. This success has been largely due to private sector activity. The high level of uptake has been through the sale of products that best fit the purchasing power of rural households, and by making these products available within the mobility range of potential customers, typically less than 40km from the customers home [Van der Vleuten et al, 2003]. In mature market areas, such as central and western Kenya, between 20 and 40% of households have systems. Most units are in the power range of 10 to 20 Wp. With prices being as low as US$50, the products have been affordable by medium class families without a need for subsidies and credit. However, financial assistance will be necessary if poorer families are to be able to afford an SHS. Most of the SHS sellers started selling these products in the 1990s. As the Kenyan business culture is mainly based upon imitation, once a few shops had been convinced by the Nairobi based distributors, businessmen all over the country replicated their success by selling systems. The level of competition is high with over 800 rural outlets, and by shopping around even the least informed end-user will buy at a reasonable price. Information from friends and relatives is currently the main source that new customers turn to for advice on the best system to use, as the shopkeepers are rarely trusted. More needs to be done to both help customers understand the importance of purchasing quality systems and to help purchasers to identify them. The high level of sales demonstrates the effectiveness and efficiency that the private sector can bring to disseminating SHS – success that has yet to be matched by any utility or donor programme.

For information on challenges and issues affecting the exploitation of solar energy in Kenya, click here.

Wind energy

The Equatorial areas are assumed to have poor to medium wind resource. This could be a general pattern for Kenya. However, some topography specifics (channeling and hill effects due to the presence of the Rift Valley and various mountain and highland areas) have endowed Kenya with some excellent wind regime areas.

The North West of the country (Marsabit and Turkana districts) and the edges of the Rift Valley are the two large windiest areas (average wind speeds above 9 m/s at 50 m high). The coast is also a place of interest though the wind resource is expected to be lower (about 5-7 m/s at 50 m high). Many other local mountain spots offer good wind conditions. Due to monsoon influence, some seasonal variations on wind resource are expected (low winds between May and August in Southern Kenya).

It is expected that about 25% of the country is compatible with current wind technology. The main issue is the limited knowledge on the Kenya wind resource. The meteorological station data are quite unreliable while modern measurement campaigns have started recently when investigating wind park locations.

Kenya’s wind resource is determined from wind speed data from meteorological stations. The Department has 35 stations spread all over the country. Information gathered is not adequate to give detailed resolutions due to sparse station network.

There is significant potential to use wind energy for grid connected wind farms, isolated grids (through wind-diesel hybrid systems) and off-grid community electricity and water pumping. 

Use of wind turbines or wind pumps in Kenya is marginal. As of 2007, the installed capacity of wind turbines was 750 kW; 150 kW of which were small isolated wind turbines and 600 kW of medium grid connected wind turbines; 2 at Ngong Hills and 1 in Marsabit. There were plans underway to develop a 10-15 MW wind farm in Kinangop. An average of 80-100 small wind turbines (400 W) have been installed to date, often as part of a Photovoltaic (PV)-Wind hybrid system with battery storage.

Wind pumps are more common than wind turbines, 2 local companies manufacture and install wind pumps. As of 2007, the number of installations was in the range of 300-350.

For information on challenges and issues affecting the exploitation of wind energy in Kenya, click here.

Fossil Fuels

Total petroleum consumption in Kenya has grown from 2.6 million cubic meters in 2003 to 3.73 million cubic meters in 2006. As of 2007, Kenya had one refinery, the Mombassa refinery, with a nameplate capacity of 90,000 barrels per day. Since its commission the refinery has not operated at full capacity.

LPG

Consumption of LPG has increased by about 59% between 2003-2006 from 40,000 to 65,000 metric tons/year. The Kenya Petroleum Refinery makes about 30, 000 metric tons of LPG and to balance growing demand reliance on imported LPG has increased.  However, there are plans underway to upgrade the refinery to make 115,000 metric tons of LPG.

Coal

The Ministry of Energy has identified two areas with possible commercially exploitable quantities of coal. These are the Mui basin of Kitui and Mwingi Districts and Taru basin of Kwale and Kilifi Districts. As of 2007, 10 wells have been drilled in Mui basin with encouraging results indicating possible existence of commercial quantities of coal.

For more information on fossil fuel resources in Kenya, click here.

National Energy Policy

The energy policy for Kenya was formulated in 2004, but recently high oil prices and need for energy security have become more urgent drivers for alternative energy. This may call for re-assessment and update of the policy and strategy. For Kenya, high oil prices and the need to increase overall energy per capita supply are strong motivators for development of alternative forms of energy. Transportation fuels remain the most emotive of all energy segments, especially when prices are going up, as this is where lifestyles and livelihoods are visibly impacted. Alternative energy is not only focusing on economics alone, but also looks at security of supply and and other social economic benefits to the country.

A number of options are being considered:

• The proposed grass-root Garsen sugar project ( bio-ethanol)
• The government and stakeholders are planning to introduce bio-diesel for both rural energy use and for blending into automotive diesel.
• Expansion of the geothermal power supply
• Exploration of the coal deposits in Kitu.

The Energy Regulatory Commission (ERC) was established as an Energy Sector Regulator under the Energy Act of 2006 in July 2007. ERC is a single sector regulatory agency, with responsibility for economic and technical regulation of electric power, renewable energy, and downstream petroleum sub-sectors, including tariff setting and review, licensing, enforcement, dispute settlement.

Literature

EAC Strategy to Scale-up Access to Modern Energy Services, Kenya Country Baseline Report and Workplan, April 2008