Kenya - PowerPoint PPT Presentation

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Kenya

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Act as local Reps. for OEMs. Consult with local and ... Kenyans in Diaspora. Common sense. AGOA. MBITA. Challenges. Currency Risk: Hedge. Transact in Dollars ... – PowerPoint PPT presentation

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Title: Kenya


1
Kenya
  • Opportunities in the Energy Sector

2
Africa Energy and Renewables
  • A little about us
  • Energy services company.
  • Develop renewable energy projects.
  • Act as local Reps. for OEMs
  • Consult with local and international firms on
    Energy in Kenya.
  • Involved in Community Development projects.

3
A few facts
  • '08 econ growth 7
  • '09 econ growth 3
  • Population 38 MM
  • On Grid 18
  • Trade Blck COMESA
  • Current Electricity Generation
  • Hydro
  • Diesel
  • Geothermal
  • Misc generation
  • Solar
  • Wind
  • Biomass

4
The Energy Sector
  • Current Generation capacity 1,150 MW
  • Planned Generation in 2018 3,011 MW
  • Growth Drivers
  • Govt. Commitment to connect 1MM new consumers in
    5yrs.
  • Growing economy
  • Growing population
  • Technology adoption including cellphones, TVs,
    Computers etc.

5
Why will the additional capacity come from?
  • Large Hydro
  • 60 MW on Mutonga or River Tana. Est. cost 250MM
  • 140 MW at Lower Grand Falls. Est. cost 600MM

6
Where will the additional Capacity come from
  • Small Hydro 3,000 MW across the country.
  • Initiative to tea factories that often are
    located in ideal settings.
  • Feed in tariffs for IPP 0.06 to 0.12/kWh

7
Geothermal
  • 7,000 MW potential in the Great Rift Valley
  • Currently 165 MW developed or under development
    including Kengen and Ormat.
  • Govt. Forming Geothermal Development Corp. that
    will carry the exploration risk and lease out
    proven steam to IPP.
  • No published Feed in Tariff. - Negotiate

8
Coal
  • Govt. doing feasibility study for a 300 MW Coal
    Plant.
  • Opportunities
  • Developing a coal berth at the port of Mombasa.
  • Plant construction and operation
  • Coal exploration Govt. currently leasing out 8
    coal blocks around the country.

9
Solar
  • Average solar insolation btwn 4 and 6kWh per M²
  • Currently 500,000 homes have solar panels.
  • Govt. using solar panels for remote schools and
    clinics
  • No Feed in Tariff on Solar yet too expensive.
  • Open to proposals though....................

10
Wind
  • Govt. believes there is 405MW potential
  • Wind Resource Map available http//swera.unep.net
    /
  • Feed in Tariff 0.09

11
N uclear
  • Govt. seeking an investor for a 500 MW to 1GW
    Capacity.
  • Construction time frame Next 7 years.
  • Arrangement BOOT ( Build Own Operate Transfer)
  • Based on a 30yr PPA.

12
Other Opportunities
  • Infrastructure
  • Plans for 400 Km of 132 kV
  • Plans for 450 Km of 400 kV
  • Grid requires 60,000 transformers over the next 5
    yrs. - Local Manufacture or import?
  • Annual maintenance of 2,000 transformers.
  • Meters? Smart Meters? Switchgear? Insulators? etc.

13
Challenges
  • Information Who? Where? How? What Price?
  • Network. Google utility events on the continent
    and attend. Linkedin.com
  • USDTA
  • US Embassy in Nairobi
  • Kenyans in Diaspora
  • Common sense
  • AGOA
  • MBITA

14
Challenges
  • Currency Risk
  • Hedge
  • Transact in Dollars
  • Corruption
  • Say no.
  • Culture
  • Get a good local partner
  • Check references, visit the US Embassy in Nairobi.

15
Challenges
  • Political Risk
  • Relatively stable.
  • Get Insurance http//www.miga.org/
  • Cost of doing business
  • Pretty high in Nairobi. Factor it into your
    models.
  • Payment Risk - significant
  • Cash
  • LC

16
Challenges
  • Legal Protection
  • Get proper legal representation.
  • That being said, structure your transactions with
    the assumption that there is no legal recourse.
  • Long legal process
  • Tons of loopholes
  • Disadvantaged from a local network perspective
  • Expensive

17
Have Fun!
  • Kenya is a great place to do business
  • Food
  • Culture
  • Safari
  • Indian Ocean Beaches
  • Kilimanjaro and Mt. Kenya
  • People.
  • Don't sweat the small stuff
  • Traffic, congestion etc.

18
Thanks
  • Joseph Nganga
  • jnganga_at_africarenewables.com
  • 1 704 804 4684
  • Developing renewable energy and energy efficiency
    projects.
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