Existing supporting regulatory framework For Energy Efficiency

EXISTING SUPPORTING REGULATORY FRAMEWORK

ENERGY EFFICIENCY

Energy Regulatory Commission

PRESENTED BY:

Mr. Robert Pavel Oimeke,

Director Renewable Energy


25th April 2013, Hilton

SUPPORTING REGULATORY FRAMEWORK FOR

EFFICIENCY


PRESENTED BY:

Mr. Robert Pavel Oimeke,

Director Renewable Energy


April 2013, Hilton Hotel, Nairobi

OUTLINE

• Introduction– Energy sector Institutional structure

– ERC Mandate

• EE & EC Policy Framework


• EE & EC Policy Framework– Sessional Paper No. 4 of 2004

– Vision 2030

OUTLINE

Energy sector Institutional structure

EE & EC Policy Framework

Energy Regulatory Commission Slide 2

EE & EC Policy FrameworkPaper No. 4 of 2004

OUTLINE CONT’D

• EE & EC Legal Framework– The Energy Act, 2006

• EE & EC Regulatory Framework– The Energy Management Regulation, 2012


– The Energy Management Regulation, 2012

• Licensing Of Energy Auditors

• Q&A

OUTLINE CONT’D

EE & EC Legal Framework

EE & EC Regulatory FrameworkThe Energy Management Regulation, 2012


The Energy Management Regulation, 2012

Licensing Of Energy Auditors

ENERGY SECTOR INSTITUTIONAL STRUCTURE

Ministry of Energy


Electricity subsector

Kenya Electricity Generating Company


Kenya Electricity Generating Company

Kenya Power and Lighting Company

Rural Electrification Authority

Kenya Electricity Transmission Company

Geothermal Development Company

Independent Power Producers

ENERGY SECTOR INSTITUTIONAL STRUCTURE

Ministry of Energy


Petroleum subsector

Kenya petroleum refineries


Kenya petroleum refineries

Kenya pipeline company

National Oil Corporation

Oil marketing companies

POWER INSTITUTIONAL STRUCTURE


POWER INSTITUTIONAL STRUCTURE


ERC MANDATE

• ERC is a single sector regulatory

economic and technical regulation

renewable energy and downstream

including:


including:

• Tariff setting and review

• Licensing

• Enforcement of Requirements

• Dispute settlement

• Approval of power purchase

• Preparing indicative plans

ERC MANDATE

regulatory agency with responsibility for

regulation of electric power,

downstream petroleum sub-sectors


Requirements

and network service contracts

ERC MANDATE

• The Renewable Energy department

Renewable Energy (RE) and Energy

and promotion which include the

• Collect and maintain RE & EE


• Collect and maintain RE & EE

• Prepare RE & EE national plan

• Initiate development of Standards

• Develop requisite regulations

• Provide information and statistics

require from time to time

ERC MANDATE CONT’D

department is responsible for

Energy Efficiency (EE) regulation

the following responsibilities:-

EE data


EE data

plan

Standards for RE & EE

regulations and recommend to the Minister

statistics to the Minister as he may


• Designate energy consumers

energy auditors

• licensing, Monitoring and enforcement

• Advice Commission, internal


stakeholders on technical matters


consumers and maintain list of accredited

enforcement of RE&EE Regulations

internal parties as well as external


matters pertaining to RE & EE

• The Kenyan energy sector is characterizedconstraints of commercial energy, inefficientimported petroleum products for industrial,

• The Government of Kenya, through(section 6.6.6.1), recognizes that energydevelopment process and encourages

ENERGY EFFICIENCY BACKGROUND


development process and encouragesin all sectors of the economy in orderenhance competitiveness . Industries,major consumers of commercial energy

• Energy efficiency measures can reduceenergy security (by reducing dependencecompetitiveness and help to mitigateemissions.

characterized by high energy costs , supplyinefficient utilization and dependence on

industrial, commercial and transport sectors.

Sessional Paper No. 4 of 2004 on energyenergy is a critical input into the country’s

encourages energy efficiency and conservation

ENERGY EFFICIENCY BACKGROUND


encourages energy efficiency and conservationorder to reduce cost and wastage , and

Industries, businesses and institutions are theenergy.

reduce energy demand and costs , improvedependence on imported petroleum), improvemitigate climate change by lowering GHG

• Lays the policy framework upon which cost

quality energy services will be made available to the domestic economy on a

sustainable basis over the period 2004-2023.

• The Sessional Paper encourages energy efficiency and

SESSIONAL PAPER NO. 4 OF 2004


sectors of the economy in order to reduce cost and wastage, and enhance

competitiveness. Industries, businesses and institutions are the major consumers of

commercial energy.

• The Government recognizes the need to remove barriers and constraints to adoption of

energy efficiency and conservation technologies and will therefore put appropriate

measures in place including:-

cost -effective , affordable and adequate

will be made available to the domestic economy on a

2023.

encourages energy efficiency and conservation (6.6.6) in all

SESSIONAL PAPER NO. 4 OF 2004


sectors of the economy in order to reduce cost and wastage, and enhance

competitiveness. Industries, businesses and institutions are the major consumers of

The Government recognizes the need to remove barriers and constraints to adoption of

energy efficiency and conservation technologies and will therefore put appropriate

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• encouraging private sector participation in providing technical and financial

support for energy conservation and

• enhancing the provision of energy audits and advisory services by the

SESSIONAL PAPER NO. 4 OF


Ministry of Energy to institutions and companies including

industries and financial institutions on benefits of energy

• encouraging demand side management by industrial and commercial

sectors, and where necessary provision of the necessary technical support

by the Ministry of Energy and electric power utilities

encouraging private sector participation in providing technical and financial

support for energy conservation and efficiency

enhancing the provision of energy audits and advisory services by the

SESSIONAL PAPER NO. 4 OF 2004 CONT’D


Ministry of Energy to institutions and companies including sensitisation of

industries and financial institutions on benefits of energy efficiency

encouraging demand side management by industrial and commercial

sectors, and where necessary provision of the necessary technical support

by the Ministry of Energy and electric power utilities

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• development of standards and codes of practice on cost effective energy

use

• dissemination of energy efficiency and conservation information to

SESSIONAL PAPER NO. 4 OF


consumers

• establishment of energy and equipment testing laboratories for efficiency

and accelerated equipment ageing testing

of standards and codes of practice on cost effective energy

dissemination of energy efficiency and conservation information to



establishment of energy and equipment testing laboratories for efficiency

testing

12

• Transport sector energy efficiency and conservation. The government will

pursue policies to encourage energy efficiency and conservation which

includes:-

– Taxation - choke-off wasteful consumption of motor fuels, particularly



– Taxation - choke-off wasteful consumption of motor fuels, particularly

– Fuel Economy - develop and enforce standards for fuel efficiency of motor vehicle engines

and also continue to enforce speed limits

– Awareness raising on opportunities to conserve

– Alternative form of transport

Transport sector energy efficiency and conservation. The government will

pursue policies to encourage energy efficiency and conservation which

off wasteful consumption of motor fuels, particularly petrol



off wasteful consumption of motor fuels, particularly petrol

develop and enforce standards for fuel efficiency of motor vehicle engines

Awareness raising on opportunities to conserve fuel

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• The policy is currently under review; National Energy Policy aligned to the

Constitution.

• The Ministry of Energy is responsible for the sector’s



policy is currently under review; National Energy Policy aligned to the

The Ministry of Energy is responsible for the sector’s policy development .


Energy Regulatory Commission14

• A national long-term development blue-

prosperous nation with a high quality of life by 2030, that aims

into a newly industrializing, middle-income

all its citizens by 2030 in a clean and secure environment.

VISION 2030


• The vision is anchored on three key pillars; economic, social and political

governance.

• Energy is one of the infrastructural enablers of the three “pillars” of Vision 2030.

-print to create a globally competitive and

prosperous nation with a high quality of life by 2030, that aims to transform Kenya

income country providing a high quality of life to

all its citizens by 2030 in a clean and secure environment.

VISION 2030


The vision is anchored on three key pillars; economic, social and political

Energy is one of the infrastructural enablers of the three “pillars” of Vision 2030.

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• Commercial energy is dominated by petroleum

movers of the modern sector of the economy, while

needs of the traditional sector including rural communities and the urban poor

• At the national level, wood fuel and other biomass account for about 68% of the

VISION 2030 CONT’D


• At the national level, wood fuel and other biomass account for about 68% of the

total primary energy consumption, followed

and others including coal at about less than 1%

• The Vision identifies the need to generate more energy and increase efficiency in

energy consumption.

petroleum and electricity as the prime

the modern sector of the economy, while wood fuel provides energy

sector including rural communities and the urban poor

and other biomass account for about 68% of the

VISION 2030 CONT’D


and other biomass account for about 68% of the

consumption, followed by petroleum at 22%, electricity at 9%

than 1%

the need to generate more energy and increase efficiency in

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– The Act regulates petroleum, electricity and renewable energy; including energy

efficiency and conservation.

– Part V of the Act covers Energy Efficiency and conservation is outlined in Sections

THE ENERGY


105 and 106 of the Energy Act, 2006.

– Section 105 and 106 main dwells on designation of energy users by the

Commission.

The Act regulates petroleum, electricity and renewable energy; including energy

Efficiency and conservation is outlined in Sections

ENERGY ACT 2006


Section 105 and 106 main dwells on designation of energy users by the

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• Background: – The objective of the gazetted Energy Management Regulations, 2012 is to

facilitate efficient use of energy through better understanding of supply and use, management and the implementation of energy efficiency and conservation measures .

ENERGY MANAGEMENT


– These regulations target Industrialconsumers of Energy, which offer the highest potential for energy efficiency and conservation.

– These regulations have been developed to facilitate the implementation Energy Efficiency and Conservationof the Energy Act, 2006.

– The regulations govern operationsand conservation including licensing of Energy Auditors and Audit firms

The objective of the gazetted Energy Management Regulations, 2012 is to through better understanding of supply and

implementation of energy efficiency and

ENERGY MANAGEMENT REGULATIONS


Industrial , Commercial and Institutional of Energy, which offer the highest potential for energy efficiency

These regulations have been developed to facilitate the implementation of Energy Efficiency and Conservation as outlined in Sections 105 and 106

operations and licensing of energy management licensing of Energy Auditors and Audit firms .

– All energy consuming facilities carry out energy audits every three years

– All energy audits be carried out by an energy auditor licensed by ERC– All energy audit reports, Implementation plans and Energy Policies

ENERGY MANAGEMENT REGULATIONS CONT’D


shall be submitted to ERC– Facilities will be required to implement at least 50% of the energy

audit recommendations within three years.

• GEF-KAM project supported by UNDP found that waste through inefficient use.

energy consuming facilities carry out energy audits every three

energy audits be carried out by an energy auditor licensed by ERCenergy audit reports, Implementation plans and Energy Policies

ENERGY MANAGEMENT REGULATIONS CONT’D


will be required to implement at least 50% of the energy audit recommendations within three years.

KAM project supported by UNDP found that 35% of energy goes to

• Minimum qualification for licensing of Energy Auditors:

LICENSING OF ENERGY AUDITORS

Education (Academic) Professional (Job)1 A degree in technology or engineering

or equivalent in a relevant field. At least three years work experience in Energy operations or Maintenance or Planning


Planning 2 Post graduate Engineer (Masters of

Engineering / Masters of Technology) At least two years work experience in Energy operations or Maintenance or Planning

3 A graduate Engineer with post-graduate degree in Energy Management or equivalent

At least two years work experience in Energy operations or Maintenance or Planning

4 Higher National Diploma Engineer or equivalent

At least six years work experience in Energy operations or Maintenance or Planning

Minimum qualification for licensing of Energy Auditors:-


Professional (Job) At least three years work experience in

operations or Maintenance or


At least two years work experience in operations or Maintenance or

At least two years work experience in operations or Maintenance or

At least six years work experience in operations or Maintenance or



5 A post graduate degree in Physics or Electronics or Chemistry (with Physics and Mathematics at graduation level)

At least three years work experience in Energy operations or Maintenance or Planning


and Mathematics at graduation level) Planning 6 A First degree in Architecture or

equivalent field At least three years work experience in design and use of buildings

7 A Masters degree in Architecture or equivalent in relevant field.

At least two years work experience in design and use of buildings



At least three years work experience in operations or Maintenance or


At least three years work experience in design and use of Energy efficient

At least two years work experience in design and use of Energy efficient


– An energy management certification examination from a body recognized by the Energy Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of Science in Energy Management from recognized University

LICENSING OF ENERGY AUDITORS CONT’D


Science in Energy Management from recognized University– Category B - Conducted at least five energy audits. – Category A - Conducted at least five energy audits, one of which must have been an

investment grade audit.

• Online Applications only accepted• Written Interviews• Oral Interviews


An energy management certification examination from a body recognized by the Energy Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of

recognized University



recognized Universityat least five energy audits. at least five energy audits, one of which must have been an


– An energy management certification examination from a body recognized by the Energy Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of Science in Energy Management from recognized University



Science in Energy Management from recognized University– Category B - Conducted at least five energy audits. – Category A - Conducted at least five energy audits, one of which must have been an

investment grade audit.

• Online Applications only accepted• Written Interviews• Oral Interviews• Award of License


An energy management certification examination from a body recognized by the Energy Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of

recognized University



recognized Universityat least five energy audits. at least five energy audits, one of which must have been an

Q&A SESSION


Q&A SESSION


THANK YOU


THANK YOUTHANK YOU


THANK YOU

Environment

Existing supporting regulatory framework For Energy Efficiency