KENYA INSTITUTE OF PLANNERS

Planning for the Big Four

KENYA POWER

Presentation by

Eng. Jared Othieno

Ag. Managing Director & CEO

THE KENYA POWER AND LIGHTING CO. LTD

CONTENT

OUR MANDATE

OVERVIEW OF OUR FUNCTIONS

STRATEGIC PRIORITY FOCUS

SUMMARY OF KEY STATISTICS

GENERATION MIX COMPARISON

STATE OF THE NETWORK & QUALITY OF

SUPPLY

UNIVERSAL ACCESS & PUBLIC LIGHTING

POWERING THE BIG 4

LAND USE PLANNING FOR THE BIG FOUR

PICTORIAL

CONCLUSION

OUR

MANDATE

Purchasing

bulk electricity

supply (Single Buyer)

Building and

maintaining a

robust power

network

System Operator,

Dispatch Functions &

Retail of Electricity

Customer

Service

OVERVIEW OF

OUR

FUNCTIONS

Value Chain

6

5

• Sign PPAs with generators

• Dispatch plants based on cost and system technical parameters

• System operator

• Customer education and information

• Resolution of compalints

•

• Metering and billing operations

• cus

• Network expansion and rehabilitation

• Substation upgrade and development

• System automation

• Enhance system reliability

• Improve power quality

• Increase access to electricity

• Support social economic development

• Marketing

• Off-grid program -K-OSAP

Customer service

Power transmission and distribution Energy procurement and Dispatch

Network maintenance

Customer connection Electricity retail

2

3

4

1

Energy solutions provider of choice

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Processes

ICT resources

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STRATEGIC PRIORITY

FOCUS

KPLC Strategic Plan 2018/19- 2022/23

SUMMARY OF KEY

STATISTICS

NO STATISTIC

1 Installed capacity MW (June 2018) 2,351

2 Effective Generation Capacity MW (June 2018) 2,275

3 Interconnected effective capacity (MW) 2,253

4 System Peak Demand to date (MW) 1,832

5 Reserve Margin % when effective capacity is available 23.0%

6 Energy Purchased 2017/18 (GWh) 10,702

7 Total Sales 2017/18 (GWh) 8,505

8 Losses as % of Energy Purchased 2017/18 20.5%

9 HV and MV Lines Circuit Length in km (11kV to 220kV) 81,571

10 Number of Customers (June 2018) 6,761,090

41.67%

48.28%

8.95%

0.01%

0.18% 0.00%

0.91%

Hydro

Geothermal

Diesel

Biomass

Wind

Solar

Imports

GENERATION MIX

Generation Dispatch- YR 2017/18

Renewable energy provided 90.1% of energy generated in June 2018 that is an improvement of 3.73%

from June 2016

Generation from hydro and geothermal increased enabling the displacement of expensive thermal

generation 7

8

• The current Grid Network is partly aged and is being expanded and revamped;

• Comparing 2013 to 2018, the network has expanded in size, capacity and customers

148,724 km

110,778** km

LV lines **In 2015/16

9,203 MVA*

5, 876 MVA

HV+MV Substations capacity *In 2016/17

81,571 km

49,818 km

HV & MV lines

STATE OF THE GRID NETWORK

& QUALITY OF SUPPLY

6.7 million

2.3 million

customers

• Network expansion, refurbishment and modernization projects are under implementation to

ensure

Quality Supply Improved Reliability Network Flexibility System Efficiency

1 2 3 4

5876 9203

• 16 km of 220kV electricity transmission

cable

• 31 km of 66 kV distribution power lines

• Gas Insulated Substation (GIS) in Industrial

Area.

• Ksh 13 B financing by the Exim Bank of

China

• 36 substations and associated lines,

SCADA upgrade.

• Smart metering targeting large and

medium size power consumers

• Funded by KPLC & World Bank - USD562

million

• 220/66 kV Gas Insulated Substation.

• For power stabilization in Nairobi.

Nairobi Underground

Cabling Project – Nearing

completion

Kenya Electricity

Modernization Project

(KEMP)

Commissioned Juja Rd.

Substation

Upgrade

Distribution System

Automation

Installed 300 load-break

switches out of a target of

1,400 to be done in Mombasa

and Nairobi

Project financed by WB at a

total cost of Kshs.2.7B

• Recent and on-going Infrastructure development projects to modernize & expand the

network are:

STATE OF THE GRID NETWORK

& QUALITY OF SUPPLY

UNIVERSAL ACCESS LAST MILE CONNECTIVITY

AfDB I

• USD 150M (Approx. 224,952 customers)

• Dec 2015 – Dec 2018; 114,532 Connections (Aug 18)

AfDB II

• AfDB II: USD 150M (Approx. 314,200 Customers)

• Nov 17 – Aug 19 Design works in progress

World Bank

(IDA)

• World Bank (IDA): USD 153.5M (Aprox 200,000 Customers)

• Nov 17 – Aug 19; Materials issuance in progress

UNIVERSAL ACCESS LAST MILE CONNECTIVITY

AFD/EU & EIB

• Euro 180M (Approx. 224,952 customers)

• Transformer Maximization to commence in Jan 2018;

• Approx. 296,649 Customers

AFD

• Euros 8.5 M (Approx. 314,200 Customers)

• Feb 18 – Dec 18

• Transformer densification project awaiting transformers delivery

GOK

• Progressive transformer maximization that has spent Kshs 9.6 B (Aug 2018) and connected 124,850 Customers

• National electrification rate of Kenya has increased from 23% in July 2009 to ~73.2% today

• Kenya has an ambitious target of achieving universal electricity access by 2020

• Last Mile Connectivity Program aims to increase access to about 75-80% of Kenyans.

• However, the interconnected electricity system covers only the central corridor of the country: Mombasa-Nairobi-Lake Victoria

• ~1.3 million households and 27,500 community facilities remain un-electrified in underserved counties

• Scale-up of off-grid solutions is required

Transform Kenya into a newly industrializing, middle-income country

providing a high quality of life to all its citizens.

Access to competitively-priced, reliable, quality, safe, and

sustainable energy is essential for achievement of the vision.

OTHER CONNECTION DRIVES

KENYA OFF GRID SOLAR ACCESS

PROJECT-

(K-OSAP)

• KPLC runs 23 Mini grids – Ongoing project to hybridize the diesel powered mini grids

• Construction of approximately 120 mini-grids under the K-OSAP project funded by World Bank; Project to be on Build-Operate-Transfer.

*Project is at site pre-feasibility stage before bidding for Construction

• KPLC set to implement Mini grids and Community Facilities electrification projects worth USD 45 Million

OTHER CONNECTION DRIVE

EXISTING & POTENTIAL MINI-GRID

LOCATIONS

• A GOK funded project towards increasing security and

enabling 24 hour economy

• Initially covered Nairobi town and its environs, but

later extended to cover 52 towns and County head

quarters across the country.

• 115,489 lanterns installed

• Implemented at a cost of KShs.15.3 billion

• 30,000 new lanterns to be installed in 2018/19

•

PUBLIC LIGHTING

PROGRAM

Electricity Cost Share of Total

Production Cost (German Data)

• Steel industries 12% to 22%

• Paper industries 0.5% to 5%

• Chemical industries 0.7% to 4%

• Aligns with the national Big 4 Agenda –enhance

manufacturing, health care, food security (irrigation) and

affordable housing

• Energy costs for most manufacturers other than cement and

steel, are often less than 10% of input cost

• KAM energy efficiency initiatives embraced, partnering in

keeping costs low

• Cost-reflective electricity tariffs key for sustainability

• At present, manufacturers seeking to have enhanced quality

and reliability of power supply compared to energy cost

• Maximizing production efficiency and carrying out regular

energy audits would help lower manufacturers’ energy costs

POWERING THE BIG 4

We aim at providing least cost energy to our industries:

Need to address the expanding City and County Headquarters by providing enough

land for services

Case of Ngong Substation – Land had been provided by the Plan

Case of increasing high-rise buildings

Possible solutions for policy review

Factoring sub-station/switch gear/transformer rooms as part of building approvals

for all County Govts (Amendment to existing by-laws and approval requirements)

Factoring in underground tunnels and chambers in urban spaces to accommodate

future power transformation and reticulation services

Wayleaves provisions for utilities factored in project planning/land acquisition

phases (as opposed to utilities procuring their own wayleaves)

Service ducts & tunnels provision in all National & County Road construction

LAND PLANNING FOR THE BIG FOUR

AERIAL VIEW OF NEWYORK DOWN TOWN

PICTORIAL – NAIROBI IN 2040?

Electricity is a key enabler in Powering the Big Four as well as the Vision

2030

Electricity access rates have improved to over 70% in the Country

County Governments play a key role in devolving services and

development to the County

Land use planning for services (electricity service included) continue

being a challenge yet can be solved with proper planning and policy

amendments

KPLC continues to Support achievement of the national Big 4 Action Plan

namely food security, manufacturing, health and housing

This Institute plays a huge role of ‘Landing’ the Big Four Agenda by

adopting/ensuring adoption of facilitating policy/law frameworks

CONCLUSION

Thank you