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