ENERGY SITUATION IN KENYA by Veronica Ngunzi An energy report submitted to the International Solar Energy Center for Technology Promotion and Transfer at Gansu Natural Energy Research Institute during the 2021 International Training Workshop on Solar and Wind Energy Application September 2021 Introduction Kenya is a country located in the east of Africa bordered by Somalia, Ethiopia, Southern Sudan, Uganda, Tanzania and Indian ocean. It covers an area of about 569,000 square kilometers of which (80%) is considered either arid or semi-arid (ASAL). Kenya’s main economic activities include agriculture, forestry, fishing, mining, manufacturing, energy, tourism, and financial services with its economy the fifth largest in sub-Saharan Africa. It is classified as newly industrialized lower income middle income country with a GDP of $85 billion as at 2018. It has a population of 47,564.296 people. Mandate of the country’s Energy subsector To enhance power generation capacity, transmission and distribution. To increase access to reliable, clean and affordable energy to Kenyans. To promote renewable energy. To use new technology in power generation among others. To enhance regional trade by interconnecting regional networks. National energy and policy development. Energy regulation, security and conservation. Energy sector organizational structure Ministry of Energy- It is responsible for overall national policy coordination and development in the energy sector in Kenya Energy and Petroleum Regulatory Authority(EPPRA) Energy Tribunal Policy and regulation The Kenya Electricity Generating Company (KENGEN) Geothermal Development Company(GDC) Independent Power Producers (IPPs) Generation The Kenya Power (KP) Rural Electrification and Renewable Energy Corporation (REREC) Kenya Electricity Transmission Company(KETRACO) Nuclear Power and Energy Agency (NuPEA) Transmission National energy status Electricity demand (2019) - 11,620.7 GWh Kenya’s current effective installed (grid-connected) electricity capacity is 2,712 MW. Electricity supply is predominantly sourced from hydro, geothermal and fossil fuel (thermal) sources. The national electricity access from both grid and off-grid solutions at the end of June 2018 was 73% Electricity generation mix Electricity generation sources are mainly renewable, of which the majority is from geothermal energy, and the remainder from hydropower, wind, and solar power. Technology Hydro Geothermal Thermal Cogeneration Solar Wind Imports Total Capacity(GWh) 3,741 5,033 1,298 0.21 60 1,192 170 11,493 Percentage% 32.55 43.79 11.29 0.00 0.52 10.37 1.48 100 Renewable energy potential and status Source Potential(MW) Hydro Installed capacity(MW) 750 Geothermal 745 10,000 3,000-6,000 Solar (isolation of 4- 130 6 KWh/m2 1,500 Wind ( 6m/s and above) 4,600 641 Opportunities and Challenges of wind and Solar Energy Wind Energy Opportunities Mature technology in terms of commercial development. Decrease in wind energy development costs in recent years due to increased takeup. Challenges Wind turbines do not produce power constantly, thus investment in battery storage is necessary. High upfront costs for wind power generation equipment. High capital investment for transmission lines due to wind power potential areas being far away from the grid and load centers. Inadequate wind regime data. Inadequate skilled capacity for wind power technology. Inadequate wind energy industry standards due to fast changing technologies. Competing interest in land use with other activities. Inadequate R&D in wind technologies. Opportunities and Challenges of wind and Solar Energy Solar Energy Opportunities Substantial opportunities for rural electrification and decentralized applications. Increased potential for domestic and commercial solar water heaters, solar water pumps, solar based refrigeration and solar drying. PV systems typically have a fairly consistent exploitable solar Potential throughout the year in Kenya, due to high insolation rate. Challenges Uncoordinated approach in policy implementation and promotion of solar energy projects. High upfront capital cost for plant and equipment. Weak enforcement of standards and regulations. Rampant theft of solar photovoltaic panels, which discourages installation. Lack of awareness of the potential opportunities and economic benefits offered by solar technologies. Proliferation of sub-standard solar energy technologies and equipment. Financing Renewable Energy Public Finance- by the government through feed in tariff policy Development finance- world bank, African development bank etc. Climate finance Commercial finance- Local and international banks END THANK YOU