Energy Challenges in Kenya

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Energy Challenges in KenyaElectrifying Kenya

• Annabel Yadoo MPhil MA
• Centre for Sustainable Development, Cambridge
  University

Cambridge Energy Forum 21st October 2010
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• How many people in the world lack access to
  electricity in their homes?
• How many people in the world rely on traditional
  biomass for cooking?

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So What?.....

• Poorer quality and more expensive fuels
• Detrimental effect on...
• Health (1.45 million deaths/yr from smoke inside
  the home)
• Education
• Income generation (agricultural
  non-agricultural productivity)
• Communications
• Entertainment, Security, Comfort and Wellbeing
• Environmental degradation deforestation leading
  to landslides, flooding, desertification, etc.

Modern energy services need to be sufficient in
quantity, reliable and affordable so that the
MDGs and other human and economic development
goals can be achieved.
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Key Challenges for the Electricity Sector in Kenya
Insufficient generation capacity, weak
transmission and distribution network
unreliable service
Non-diversified fuel mix leaves the electricity
network vulnerable to droughts and rising oil
prices
Poor grid penetration approx 40 of population,
16 million people, without access to electricity
and only 10 of rural Kenyans with access to
electricity social and ethnic injustice
Low numbers of connections even in electrified
areas high cost of connection for users
Expensive electricity tariffs for users due to
rising fuel costs
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Innovations for Electricity Sector

• Innovation and alternative solutions are VERY
  important but they are even more vital on the
  soft side than on the hard
• For example
• Stima loan (80 of cost of connection at 15
  interest, payments spread out over 1 year) to
  increase household grid connections
• Favourable feed-in-tariffs for renewable energy
  (seek stakeholder consultation)
• Training centres to build the capacity of rural
  project developers
• Genuine commitment for increased renewable energy
  and electrification from politicians and civil
  servants alike

Watch out for perverse incentives! Tax revenue
from oil (6 of total government revenue) KPLCs
consumers pay for fuel costs powerful incumbents
including the parastatal National Oil Corporation
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Into the Future

• New constitution passed 27th August 2010
  increasing decentralization, more loopholes?
• Ambitious targets set out in Vision 2030 22
  rural electrification by 2012, 65 by 2022 and
  100 by 2030
• Focus on wind energy and geothermal power, but
  additional thermal plants are being commissioned
• Solar lanterns
• Decentralised mini-grids
• Biogas for electrification and cooking
• Solar thermal to produce electricity?

• Assistance could take the form of
• Investment in local entrepreneurs and energy
  businesses (there are plenty)
• Research and Development to reduce the cost of PV
  and wind technologies
• Provision of innovative financing mechanisms to
  aid project development in rural areas

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• aly21_at_cam.ac.uk
• http//www-g.eng.cam.ac.uk/sustdev/