KETRACO’S PRESENTATION TO WEPEX PRESS CONFRERENCE By MR. RAPHAEL MWORIA On 19TH OCTOBER 2015 – FAIRMONT NILE- CAIRO 1. Mandate 2. Electricity Structure in Kenya 3. Perspective 4. Electricity Demand 5. Generation Capacity 6. Generation Potential 7. Clean Energy 8. Regional Power Trade 9. Investment Opportunities 2 KETRACO’s mandate is to design, construct, operate and maintain new high voltage electricity transmission infrastructure that formS the backbone of the National Transmission Grid. These lines include 132kV, 220kV, 400kV and 500kV HVDC. The Kenya Power and Lighting Company (KPLC) has kept its current stock of existing 132kV and 220kV transmission lines. 3 Established in 2008 Invested US $2Billion in :◦ 6 completed projects (746 kms) ◦ 26 ongoing projects (3,422 kms) ◦ 8 projects awaiting finances (1,324kms) Asset Base – 4 Kshs. 605,484,000 (US $6,054,840) in 2014 Project financing- Govt of Kenya, World Bank, AfDB, EIB, AFD, Govts of Spain, Belgium, EXIM Bank China, EXIM Bank India, JICA, etc Inadequate generation capacity due to insufficient investment Dependence on 37.8% Hydro generation Inadequate investment in transmission 5 Low access to power at 30%, less in rural areas Vision 2030- Devolution- 5000+MW – Last Mile Programme- Aims at increasing electricity access to 6 Kenya’s economic development blueprint. Transform Kenya into a newly industrializing, “middle-income country by the year 2030”. Economic Pillar wishes to create a robust, diversified and competitive manufacturing sector. Other pillars Social & Political. 2010 new constitution. Anticipated rise in electricity demand due to oil, mining, production of iron and steel products, irrigation, agro-based industry, operation of petroleum pipelines for both crude and petro-chemical industries, airports, and new economic zones, railway, 36 months. Capacity will mainly be developed from Geothermal 1,646 MW, Natural Gas 1,050 MW, Wind 630 MW and Coal 1,920 MW, through government power utilities and IPPs under the PPP framework. Aims at lowering cost of electricity. Kenyan non-commercial households. Three phases from Sep 2015. 314,000 households in phase I 600m from transformers. Phase II & III, to increase by 500,000 households through new transformers and extension of the low voltage network. 2.5 million Kenyans to be connected. Target is 70% by 2017 and universal access by 2020. 7 a. b. c. d. e. 8 Installed capacity total 2,211 MW The effective interconnected capacity during normal hydrology is 2,147 MW (hydro 821, geothermal 580, thermal 745, co-generation 26, and wind 26) Registered interconnected national peak demand as of May 2015 is 1,520MW The total connected electricity customers currently are approximately 2.3 million. National electrification is approximately 30%. 9 10 Small hydro Potential is 3,000MW Geothermal potential is between 5,000MW – 10,000MW. Geothermal is currently the most promising indigenous resource for development of power. GEOTHERMAL ENERGY 1. At least 7 projects are dedicated to the transmission of geothermal energy in Kenya. These projects will evacuate power from Olkaria, Menengai and Silali geothermal sites. 11 Kenya has great potential for the use of solar energy throughout the year because of its strategic location near the equator with 4-6 kWh/m2/day levels of insolation. The total Solar potential area capable of delivering 6.0 kW/m2 per day in the country is about 106,000 square kilometers whose potential is 638,790 TWh. 12 On average the country has an area of close to 90,000 square kilometers with very excellent wind speeds of 6m/s and above. The Best wind sites in Kenya are Marsabit , Samburu, parts of Laikipia, Meru north, Nyeri, Nyandarua, Ngong hills, Lamu, off shore Malindi, Loitokitok at the foot of Kilimanjaro and Narok plateau. 13 Solar Potential Areas Wind Potential Areas Geothermal Potential Areas 14 1. KENYA: 2. TANZANIA: 4. UGANDA: 5. RWANDA: 6. BURUNDI: 7. ETHIOPIA: 8. SUDAN: 9. EGYPT: 10. DRC: 15 Geothermal, hydro, wind, coal, natural gas Hydro, natural gas Hydro, thermal Small hydro Small hydro Hydro, Wind Hydro, thermal Hydro, thermal, natural gas Hydro, thermal Isolated power systems relying on internal power sources with power shortages – limited integration and power exchange Regional Power Institutions: Nile Basin Initiative (NBI) Nile Equatorial Lakes Subsidiary Action Program (NELSAP) Eastern East 16 Africa Power Pool (EAPP) African Community Power Pool (EACPP) Interconnection Projects Feasibility Studies Completed (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Kenya (Lessos) - Uganda (Jinja) Uganda (Mbarara) - Rwanda (Birembo) Burundi (Kigoma) – Rwanda (Rwegura) Bujumbura (Burundi) - Kiliba (DRC) Burundi – Rwanda –DRC Burundi - Rwanda and Tanzania Ethiopia – Kenya Kenya -Tanzania Ethiopia-Sudan-Egypt 17 18 Power Generation Power Transmission Independent Power Producers (IPPs) Public Private Partnership (PPP) Infrastructure development Capacity Building Project management Operation and maintenance Power management and trade Power Distribution & Retail Equipment Manufacturing & Supply 19 Power Generation & Transmission (Packages): developing power plant and transmission line together: Independent Power Producers (IPPs) Public Private Partnership (PPP) BOT BOOT Equipment Power Transmission Projects- EPC&F Capacity 20 Manufacturing & Supply Building 21 Estimated Cost (US$) Kshs Project Name Scope (Engineering Procurement and Construction) 1 Narok-Bomet 88km 132kV DC line and substation extension works ($17 million) 1.7 2 Kabarnet-Rumuruti 111km, 132kV DC line and substation extension works ($19 million) 1.9 3 Suswa - Ngong 40km, 220kV DC line with substation extension works ($21 million) 2.1 4 Meru -Maua Line 50km 132kV Line and 1 Sub-station at Maua ($14 million) 1.4 5 Rumuruti -Maralal Line 148km 132kV Line and Sub-station at Maralal ($21 million) 2.1 6 Rabai- Bamburi-Shanzu-Kilifi line 60km, 132kV DC line with associated substations ($27 million) 2.7 7 Voi - Taveta Line 107km, 132KV DC line, with substation at Taveta. ($26 million) 2.6 6 Garsen -Hola -Garissa Line 240km 220kV SC line and substation at Hola and Bura ($42 million) 4.2 7 Garissa –Habaswen -Wajir Line 330km 220kV SC Line and substation at Wajir and Habaswen 8 Awendo -Isabenia Line 50km 132kV SC Line and substations at Isabenia ($14 million) 1.4 7 Galu - Lunga Lunga Line 60km 132kV SC Line and substations at Lunga Lunga ($16 million) 1.6 8 Ishiara - Chogoria Line 40km 132kV SC Line and substation at Chogoria ($13 million) 1.3 ($73million) 7.3