WATTS UP MAGAZINE

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THE ENERGY MAGAZINE MAY-JUNE 2018

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DR. KEN TARUS ON

OIL & GAS

The Human Resource“Curse”

THE 5000MW MARCH Another bold move

TARIFF “GIFT” Thank you!

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FROM CHIEF ENERGIZING OFFICER’S DESK THE TEAM Publisher & CEO James Ngomeli

Editor

Stella Muhoro

Creative

Kelvin Mabonga

Contributors

1.Cynthia Wanjiru 2. Stella Wambui 3. Malcom Marega 4. Tedd Moss 5. George Njenga 6. Nduku Muema 7. Dean Onyango Publishing Company Brands & Beyond Ltd

Views & opinions expressed in this magazine are not necessarily those of Brands & Beyond Ltd, its publisher and /or its editors. We at Brands and Beyond Ltd. do our best to verify the information published, but do not take any responsibility for the absolute accuracy of the information.

Brands and Beyond Ltd. does not accept any responsibility for any investment or other decision taken by readers on the basis of information provided herein.

T

he Big four agenda is taking shape now with all ministries aligning their strategies and resources towards achieving these goals as prescribed. The focus on the deliverables is amazing and has brought various arms of government together to implement these ideas effectively and efficiently. The electricity access rate of 73% sets the foundation for accelerated growth through the Big Four Agenda mainly Manufacturing, Affordable housing, Affordable Health and Food security.

Power consumption is a key indicator of the state of the economy and is normally in tandem with GDP growth. The private sector has been fighting for reduction in the cost of power which is among the highest in the region. The positive response by the government to lower the tariff from $16cts to $9cts on a rebate structure is welcome news to the manufacturers. The on-going harmonisation of tariffs is another step in stabilising the power prices over a specified period.

The agreement on revenue sharing for the oil in Northern Kenya is another milestone in the quest for oil production in the country. The government will now take seventy five percent of the proceeds, with the county getting twenty percent and five percent going to the community. This has unlocked production and trucking of oil from the North to the port of Mombasa which should commence soon.

Another landmark decision is the gradual suppression of kerosene demand through the proposal to increase taxes by twenty shillings per litre to be at par with diesel. The adulteration of fuel in the country has negatively affected both export and local consumption, reaching alarming levels hence necessitating affirmative action We congratulate the Energy sector for standing up to be counted in the march towards a better Kenya through the Big Four Agenda

James Ngomeli - Chief Energising Officer

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• Guidelines for Contracting and arbitrating with governments – East Africa.

• Enforcement in international investment and commercial arbitration (ICSID, NYC).

• Artificial Intelligence and Arbitration – Calling on Tech Savvy East Africa to innovate for Arbitration.

• Industry hardtalk : Arbitration users perspective.

• A spotlight on the Next generation of Africa Arbitrators.

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• Energy Poverty a cause for Energy Disputes – East Africa’s experience.

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Fairmon

Nairob

inside...

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Sighting Africa’s nuclear moment:

Ghana, Nigeria, Namibia and Kenya are already pursuing this kind of energy but pace of deployment on the continent is at least a decade away despite overtures of Russia and China

10

The energy test for “Big Four Agenda”

Kenya’s march to middle income status is resolute but she’s not yet ready to rev up her industrial engine for mass production. The current installed power capacity puts the economy at the bottom of the manufacturing pack

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59

Women in Energy

Sky is the limit as manufacturers, developers and home owners look for energy efficient solutions, says Virginia Muthoni Mwaura, proprietor of Masterpiece Electricals

40

2018 World Cup powered by renewable energy

The Brazilian stadium, Mineirão, powered by 6,000 solar panels and with a potential to power 1,200 households, is natural in every sense of the word.

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44

Why China’s carbon market is Africa’s new hope

The continent was a slow adopter of carbon trading but a few success stories, including KenGen’s have cropped up across the region

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inside...

34

Enforcing solar heating rules

New buildings have easily incorporated the installations in their designs but the buildings completed eons ago risk weakening their structures by adding such features

8 Aiming a new tax at fuel adulterators Cheap paraffin was meant to cushion low-income households that use it for lighting and cooking but profit-hungry traders are making quick cash by blending the commodity with diesel

52

Joining nuts and bolts of Big 4 Agenda Eyes turn to the energy sector as the State seeks to leverage its role in connectivity, transportation, storage and lighting the pillars of growth

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61

Another 5000MW march from Dar

While in Tanzania the land compensation schemes are purely driven by government and most of the land is communal, the building of Transmission lines for evacuation of power is more less a straight forward process with no litigation

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We’re on the final leg of journey to stable power

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KETRACO has embarked on several landmark projects, including building regional interconnectors to strengthen its systems and boost power evacuation

22

Putting safety beyond compliance

Where a culture of safety exists, legal and medical costs also drop, with workers becoming happier, more productive and loyal to the organisation

40

HEADLINE OIL & GAS

Aiming a new tax at fuel adulterators

Cheap paraffin was meant to cushion low-income households that use it for lighting and cooking but profit-hungry traders are making quick cash by blending the commodity with diesel By Dean Onyango

F

uel cheats now have nowhere to hide. Their sordid business will soon be pushed into the loss making streak, thanks to a new layer of tax levy in the pipeline.

Petroleum Principal Secretary Andrew Kamau says the additional tax charge is also part of a wider plan to discourage use of kerosene for cooking and lighting in favour of cleaner energy sources.

Under the Energy Regulatory Formula, Kerosene currently retails at Sh20 below diesel, making it a suitable blend for petroleum products for traders looking for higher profit margins.

Lower tax on paraffin was originally meant to cushion low-income households that use it for lighting and cooking from high cost of living but profit-hungry traders have turned it into a dirty cash cow that earns them millions of shillings from sale of adulterated fuel.

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Biggest threat The last few months have seen a discussion and a push by ERC to increase prices of Kerosene fuel with the intention of phasing out kerosene. The downstream marketers are celebrating as kerosene has been the biggest threat to the industry due to its cost and adulteration with other products.

The country consumes about 33million litres of kerosene monthly while its ideal consumption level is five million litres. The extra 27 million litres ends up into our car engines.

When used as fuel, kerosene damages car engines, leading to reduction in the export market. The biggest impact of the tax will be the rural Kenya where the kerosene is the key to lighting and cooking.

Moving away The effects of kerosene pollution are well documented by the World

WATTS UP MAGAZINE MAY-JUNE

Health Organisation. It leads to impaired lung function, asthma, cancer and increased susceptibility to infectious diseases such as tuberculosis.

Although the alternatives to kerosene, including the Liquefied Petroleum Gas (LPG), are still not readily available, the tax move signals readiness to take the right direction.

India-Example The government of India, like most developing economies is moving away from kerosene consumption into cleaner forms of energy such as LPG. Just to create a picture, Delhi and Chandigarh, both in India, are kerosene-free with Haryana state being the newest region to be declared kerosene free. The government has gone further to encourage rapid electrification when it gave free connections to over 2.5million people under the ‘Pradhan Mantri Ujjwala Yojna’.

OIL & GAS HEADLINE

More opportunities Basically, kerosene has served us well, enabling us to enjoy bright light and cook. But it is about time we opened our eyes to more opportunities that await us. After the discovery of crude oil then petroleum, and later the ability of making kerosene from both, people continued to explore and we have come to an end of one chapter. Why don’t we embrace the beginning of a new one?

Globally the total amount of kerosene consumption for all purposes lies roughly at 1.2 million barrels per day. One barrel holds 205 litres (45 gallons). To sum up the math, approximately 20 billion gallons of kerosene are consumed in a year.

The Indian government has chosen to reduce subsidies of kerosene since a higher price of the fuel will reduce the rate of its consumption and ultimately discourage adulteration.

They have raised fuel subsidy but the

only problem is that it has increased overconsumption of fuel, weakening adoption of energy efficient options such as LPG. Lessons from India This move has environmental benefits such as reduction of greenhouse emissions, improving air quality, and preventing health risks like stroke, pneumonia, lung cancer and heart diseases. Removing the subsidy also levels the field for renewable energy to compete fairly.

The challenge for India is ensuring that the poor can gain access to the subsidy. Energy security and access to clean energy are high on India’s priorities but the subsidy is sensitive to political economy.

the government’s plans for a kerosene-free country.

India’s journey to a kerosene-free India is long but they have made great strides and with the ever growing effects of global warming, the world should take a few pages out of its book and try to make a safe home for future generations. Here is where Kenya can learn its lessons as we embark on phasing out the ‘koroboi’

“

Instead of the normal five million litres national consumption level, the appetite for kerosene in Kenya is about 33 million litres because the As much as a complete eradication is desirable, the presence of corruption extra 27 million litres end and the black market will not favour up in our car engines the poor and that puts a strain on

WATTS UP MAGAZINE MAY-JUNE

9

THE BIG FOUR AGENDA

The energy test for “Big Four Agenda”

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H o u s ing

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Wind e ner gy

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THE BIG FOUR AGENDA

“Kenya must diversify its generation sources to a mix that guarantees reliability to expanding industries and manufacturing”-George Njenga WATTS UP MAGAZINE MAY-JUNE

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THE BIG FOUR AGENDA

Kenya’s march to middle income status is resolute but she’s not yet ready to rev up her industrial engine for mass production.

The current installed power capacity puts the economy at the bottom of the manufacturing pack, writes George Njenga

E

nergy drives every sector of a country’s economy. Nations that have attained significant economic and industrial progress are those that have invested considerably in their energy security and are driving a balanced energy mix for their countries.

According to the Kenya Electricity Generating Company Limited, Kenya’s generation installed base capacity currently stands at just over 2.3GW while the effective power generation capacity in the country is about 1.6GW. These figures clearly put the country at the bottom of the manufacturing pack and it goes Countries like India, China and Bra- without saying that Kenya needs zil have current installed power ca- more power if the Government’s Vipacity in triple digit gigawatts and sion 2030 that aims to “transform have grown to become world lead- Kenya into a newly industrialised, ers in trade and indus- Countries with an middle-income country try. According to recent providing a high quality over-reliance on energy reports, India is of life to all its citizens” currently above 340GW power generated is to be realised. of power while China’s from renewables power capacity is about have suffered Increasing power gener740GW. Despite their ation in a post ‘COP23’ severe power rise in global economworld will come with ic and trade rankings, deficits in recent its challenges as counthese countries are times. tries are putting more constantly looking to emphasis on attaining optimise their energy resources, le- the right mix of fuel sources to meet veraging a mix of fossil-fuelled and both demand and emissions goals. renewable power generation.

Kenya’s energy mix is predominantly from hydro, diesel and geo-therAs the government of Kenya delib- mal sources. In most countries, a erates on its priorities under the ‘Big mix that includes renewables, gas Four’ agenda - delivering affordable and coal power generation will be housing, rolling out universal health imperative to meet the competitive coverage, increasing the share of objectives for reliable and affordable manufacturing in the economy, and power. Each of these energy sources improving food security – it must however, has its risks. ensure that reliable and affordable energy is available to drive its ambi- Costly diesel tions. Energy is the foundation, the Countries with an over-reliance on core and the real catalyst of this pro- power generated from renewables gram. have suffered severe power deficits in recent times. Zambia’s electricRight mix ity deficit rose to 1,000 megawatts

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(MW) in 2016 as severe droughts reduced water levels at the Kariba Dam, which generates much of its electricity.

In Kenya, where electricity generation capacity is mostly from hydroelectric and geothermal sources, low rainfall pushed the country to generate more electricity using costly diesel last year. For Kenya to make any meaningful headway in its development ambitions, it must diversify its energy sources to a mix that guarantees reliability of supply to support the anticipated growth in energy-intensive industries and manufacturing.

Innovative technologies But, the reality is not just about increasing generation and providing

THE BIG FOUR AGENDA

Lake Marathon Dam in Greece power. In today’s world of free trade, limited borders and interconnected systems, power must be safe, reliable but most importantly affordable.

In a world where countries like India, China and even South Africa have electricity costs at less than 10c/kWh, Kenya’s cost of electricity which today stands at 12.82c/kWh makes it highly uncompetitive in the global market.

Meaningful progress in Manufacturing, Industrial development and Global Trade will unfortunately elude the country if these statistics do not change. Harnessing all possible local available energy resources and implementing innovative power generation technologies is key to achieving lower energy tariffs.

India, China and South Africa have achieved such low energy tariffs through prioritization of locally available coal resources. They are doing this while embracing increasing demands for a better environment- free of hazardous emissions, by adapting new clean coal technologies.

Timely plans With abundant indigenous natural gas resources, Ghana and Angola are also very good examples of how countries can successfully ramp up power generation in relatively short periods. Both countries are implementing modular power plants using trailer mounted gas generating equipment` otherwise called fast power plants.

The Kenya government plan to add additional 5000MW of electricity to the national grid by 2020, using a clear mix of hydro, geothermal, wind, coal and natural gas sources is definitely a step in the right direction. The onus is on them, however, to ensure that these plans are executed in a timely, environmentally responsible and consistent manner to truly reap the benefits of such initiatives.

The ‘big four’ more than any other objective are about driving jobs, quality of life, inclusion and transformation Mr Njenga is the General Electric steam power regional sales leader for the Sub-Saharan Africa

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13

NUCLEAR ENERGY

Sighting Africa’s nuclear moment Ghana, Nigeria, Namibia and Kenya are already pursuing this kind of energy but pace of deployment on the continent is at least a decade away despite overtures of Russia and China

By Todd Moss- Senior Fellow at the Centre of Global Development Washing DC

A

lthough Africa’s energy deficits are well known, it is very rare to hear policymakers talk openly about nuclear power on the continent.

I’ve known about South Africa’s nuclear power sector and have heard a little about that country’s development of new pebble-bed technology.

I knew that the Democratic Republic of the Congo and several other countries have small research re-

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NUCLEAR ENERGY

Nuclear Plant in China

Might some of these have different requirements or cost structures that could make them more attractive in Africa’s energy-hungry emerging markets?

I honestly had no idea, but I wanted to find out. To start to get a better understanding of the status, opportunities, and challenges of nuclear power on the continent, following research on appetite of the Nuclear power in Africa.

New designs Some of the new designs and technologies under development or expected in the marketplace soon might be particularly well-suited to the needs and conditions in many African markets, including prefabricated small modular reactors, floating reactors, and sealed micro-reactors. None of these are shovel-ready yet. While the potential may be real, deployment is at least a decade away. actors. I’ve been aware that France, whose own domestic electricity mix is heavily nuclear, depends on uranium from Niger, one of the most energy poor countries on the planet.

And I even discovered a surprising African link to US nuclear technology - the original material for the Manhattan Project came from the Shinkolobwe mine in Congo (Ryker fans will know I use this historical nugget to drive a subplot in my thriller Minute Zero).

ria, Namibia, Kenya, and others are all pursuing nuclear power in one way or another. And Russia is actively marketing its own civilian nuclear technology in African countries.

But I, like many of my development colleagues, never really thought seriously about nuclear power as an option for Africa’s energy future.

Thinking back, I probably even dismissed it as a crazy idea.

At first glance, these might seem like insurmountable barriers, making Africa poorly suited for this type of power. And that’s probably correct for large traditional light-water reactors.

appears to be growing. Ghana, Nige-

technologies not yet in the market?

Nuclear power is attractive because once built, it’s a reliable source of zero carbon power. Of course, nuclear power has a long list of downsides too, including security, regulatory and oversight requirements, and especially cost.

The peculiarities of financing construction of nuclear power projects, including the total absence of traditional infrastructure finance organizations like the World Bank, are likely to drive a lot of the decision making toward Chinese and Russian models.

The biggest challenge is whether the developed countries will allow the non-developed to develop their nuclear capacity to power their growth.

“

Nuclear power is attractive because once built, it becomes a reliable source of zero carbon power but Appetite Insurmountable barriers absence of traditional Clearly, African governments desire But what about small modular rea lot more power for their economies actors? What about an array of infrastructure finance reand their interest in nuclear power potential next generation nuclear mains a major challenge WATTS UP MAGAZINE MAY-JUNE

15

CARBON TRADING

Why China’s carbon market is Africa’s new hope

16 WATTS UP MAGAZINE MAY-JUNE

CARBON TRADING

The continent was a slow adopter of carbon trading but a few success stories, including KenGen’s have cropped up across the region By Stella Muhoro

C

hina is set to open the world’s largest carbon market in a bid to reach the carbon emission goals set under the 2015 Paris Accord. The Accord is aimed at preventing future catastrophic climate change. With 600 million people without power in Africa and potential of 60,000MW in the next five years, Africa must take advantage of the new drive by China to kick start the Carbon Trading Market system which has more or less collapsed in Europe with prices at less than seven euros a tonne.

Trading emissions A carbon market, simply, is a market place where carbon emissions can be traded. This allows governments to set a price on carbon emissions to prevent companies from passing the environmental cost onto the public just as most companies do today.

The most popular way of implementing carbon market is a cap-and– trade scheme where government’s set a cap which reduces gradually, annually to help reach the country’s emission goals.

While Africa was a slow adopter of the carbon trading there have been a few success stories across the region with KenGen being one of them.

There have however been farmers who have grown vast plantations of trees to capture the dollars of carbon market trading but ending up not gaining much.

Buy credits The China market will initially cover 1700 coal and gas based power generating companies which account for about third of the total carbon gas emissions around China. Even though limited to the power sec-

tor the Chinese carbon market will still be the largest in the world after about 1.5 times the second biggest market, the European Union.

The Scheme is a basically a market incentive system to reduce greenhouse gas emissions. It involves setting a limit on the total carbon emissions, and then within the limit allowing the polluting companies to buy Carbon credits from their less polluting counterparts thereby imposing a financial burden on the polluters and granting rewards to the cleaner entities Gloves off China is trying to meet the social cost of carbon which is at $125 worth of damage for every ton of carbon dioxide emitted as estimated by economists. In order to make an impact in mitigating future climate change, the price of carbon per ton should be almost or equal to $125, cutting down on the social cost of carbon.

As China takes off the gloves to aim at becoming the global leader on climate action, President Donald Trump signed a document that does not acknowledge climate change as a real national-security threat. This shows that we may still have a long way to go to prevent ourselves and future generations from enjoying the beauty of the world.

Marine life Carbon has had adverse effects on the human life and serious environmental reach. For example, rise in carbon dioxide levels have made the world’s oceans 30 per cent more acidic since the coming of the Industrial Revolution.

Oceans absorbs about a quarter of human carbon dioxide emissions which react with seawater to form carbonic acid in water killing marine life as we know it. Therefore, as the level of carbon increases the level of acidification also increases. Additionally, the vegetables we consume also need carbon dioxide to grow.

Nutritional quality in them sinks with increase in carbon in the atmosphere without also considering increasing the amount of nitrogen and phosphorous for the plant as well.

Ozone layer The ozone layer is another crucial aspect of to our lives. CFCs (Chlorofluorocarbons) increase among other unregulated gases have caused holes to form on the ozone layer making us unprotected targets from the sun’s rays.

The world’s temperature is rising and we are busy talking about it but still are slow in putting up guards to combat the problem. We might not be here to experience the cry of our future generations but we are to hold ourselves responsible for not fighting the challenge while it was still young. Which side do you choose, better tomorrow or sit acting helpless as our world slowly depreciates?

Do not just sit there, do something!

Developing countries particularly in the Sub Sahara Africa remain marginalized despite their efforts in afforestation and agriculture. Africa still remains a very small player despite being touted that the carbon markets help the poor countries despite mounting evidence to the contrary

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17

POLICY

Lighting up the Big Four Agenda projects with a game-changing tariff structure

It is an intricate balance as the ERC allocates margins to producers, distributors and consumers of energy. Director General Pavel Oimeke says the ultimate goal is to pull down electricity cost in Kenya, from US16 Cents per kilowatt hour to only 9 US Cents from July 1, 2018 Restate the role of Energy Regulatory Commission.

The Energy Regulatory Commission was established under the Energy Act, 2006. Following the operationalisation of the Energy Act, 2006, with effect from July 7 2007, the Electricity Regulatory Board (ERB) became Energy Regulatory Commission (ERC) with the objectives and functions of regulating the electrical energy, petroleum and related products, renewable energy and all other forms of energy. It is the ERC that develops the tariff structure and protects the consumer, investors and other stakeholders. We monitor, ensure implementation of, and the observance of the principles of fair competition in the energy sector, in coordination with other statutory authorities. Above all, we provide such information and statistics to the Minister as he may from time to time require.

What is your role in the BIG 4 agenda as the regulator?

The ERC is aware that the energy sector is the enabler of the economy and forms the engine of the country. The Agenda seeks to have manufacturing growing from nine to 15 per cent, something that will require quality and affordable power.

Adequate food security and nutrition which is another pillar will seek to have the energy sector play a key role in curbing post-harvest losses, irrigation and mechanisation of agriculture. Then there is affordable heath in which the energy sector will be powering the hospitals, equipment and innovation in medical research. Lastly provision of the affordable housing pillar also requires energy as an enabler and a catalyst to development of homes. Energy is therefore critical enabler in achieving rapid results of Big Four Agenda.

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POLICY

So how do you come in as a regulator in enabling the Big 4 Agenda?

We set tariffs for the suppliers of energy, among them the Independent Power Producers, Kenya Power, KENGEN and all the players in the sector. Our role is to give competitive tariffs to ensure a reasonable rate of return to investors in the electricity sub sector. This ensures that we have the right generation mix that will spur growth in the country. So far we have peak demand load of 1700MW against a capacity of 2500mW with another 600mW coming in this year.

We know that our tariffs are very high threatening our country’s competitiveness. We have a few ongoing initiatives that aim at reducing the feed in tariffs of solar from a high of $ 12cts to $8cts. This has attributed to the falling prices of solar components.

We have also implemented an off peak power tariff to encourage our large power consumers get a 50 percent discount on power consumed during off peak hours which are from 10pm and 6am. The programme will soon be rolled out to more users. We are also looking at lowering the power cost to $9 cents per Kwh from the $16 cents per Kwh as from July 1 2018.

Will this impact KPLC’s financial base?

No .There will be a rebate structure when you achieve a certain threshold in terms of investment, job creation and lowering of cost of goods. The organisations will be given a rebate through the corporate tax. The modality is being worked on between Ministries of Energy and Finance.

What are you doing to stabilise and reduce the price of power?

We are implementing pricing schedule to reduce variation of pricing of power during the monthly cycle. The private sector is pushing for the removal of taxes which include WARMA 0.01, ERC 0.001, REP five per cent power bills and establishment of FCC stabilisation fund.

These are proposals under consideration, of which alternative funding is being sought. We are also removing the peak demand charges which have seen large consumers being charged more. The newly established special economic zones will have preferential tariffs. For example the special Economic Zone to be established in Naivasha will have preferential rates where the power will be sold to Kenya Power less technical and commercial losses and sold directly to the industries in that zone.

The lifeline tariff will also be harmonised especially for

Olkaria Power Station the house hold consumers. Basically we want to make our tariff prices very competitive and comparable with other countries like Ethiopia and Egypt.

Why are you advocating for upward review of kerosene prices?

The adulteration of fuel is slowly killing our export market of petroleum products to the neighbouring countries. For example in the 1980s and 90s Tanzania with a population of 48 million people was consuming 30 million litres of kerosene. Since they increased taxes to the same level as diesel, the consumption has declined to currently five million litres for the over 55 million population. This is the same scenario in Kenya where we import over 33m litres of fuel while the real consumption is five million litres so the rest goes to adulteration of diesel. Illegal facilities have sprung up across the country and that’s why we are fighting hard. We have done our math and we know Treasury can raise Sh29 billion by increasing the price of Kerosene by Sh23 per litre to reach the level of diesel to deter the temptation to adulterate the fuels.

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19

POLICY

With the first oil export starting soon, do we expect lower pump prices?

No. It’s imperative to maintain the international pricing where the prices are dictated by market forces. I am against any form of subsidy of pump prices because already the consumers are paying market prices. Many countries are moving away from subsidising fuel prices.

The money made from the export of oil should be used to develop the country instead.

What are you doing about the continued decimating of our forests in search of biomass energy?

We know it’s a big challenge for the county but from July 2018 anyone using biomass for commercial purposes must be licensed by ERC apart from Kenya Forest Service. They must demonstrate that their raw materials are acquired in a sustainable manner. This will help reduce the exploitation of the small scale farmers who are forced to cut trees indiscriminately

“From July 2018 anyone using biomass for commercial purposes must be licensed by ERC apart from Kenya Forest Service. They must demonstrate that their raw materials are acquired in a sustainable manner”

ERC Director General Pavel Oimeke

“Competitive tariffs will guarantee a reasonable rate of return to investors in the electricity sub sector and ensure that we have the right generation mix to spur growth” says ERC Director General Pavel Oimeke Deforestation for wood supply 20 WATTS UP MAGAZINE MAY-JUNE

TRANSMISSION

Ndhiwa sub-station

Stable power for South Nyanza, at last!

The Kenya electricity transmission company (KETRACO) has activated the 132/33kV Ndhiwa substation in Homa Bay County. The South Nyanza region has been affected the most by low power quality and unreliability, something that has slowed the economy of the region. Ndhiwa substation is part of Sondu – Homa Bay – Awendo electricity transmission project that is meant to improve power supply reliability and stability within that part of the country.

The substation constructed by CG Holding and Belgium N.V. will also benefit Migori County. During the activation, KETRACO Managing Director Fernandes Barasa emphasised the importance of reliable quality power in that region. He said the development would make southern Nyanza more attractive to investors thus spurring economic growth and creation of employment opportunities in line with the government’s Big 4 Agenda.

Empowerment ‘’Businesses such as fishing and fish processing will thrive as fishermen and fish mongers will be able to refrigerate their catch thus reducing losses. In addition, the community will leverage on efficient power

to engage in agribusiness, significantly contributing to economic growth and empowerment,’’ said Mr. Barasa.

South Nyanza region has had the most power outages in the last five years due to unprecedented growth of the boarder economy.

Single circuit Southern Nyanza region has been prone to power outages but a stable grid will create an enabling environment for conducting business. Mr. Barasa said that the government was committed to facilitate the setting up of 1,000 additional Small and Medium Enterprises (SMEs).

With a rating of 72MW, the Sondu-Homa Bay-Awendo transmission line project involves the construction of 106Km 132Kv single circuit transmission line and new 132/33kv sub-station at Sondu and Homa Bay (Ndhiwa) and 1kV extension bay at Awendo. The project is jointly funded by the government of Kenya and the KBC bank of Belgium

From Ketraco Communication Team WATTS UP MAGAZINE MAY-JUNE

21

SAFETY VS COMPLIANCE

Putting safety beyond compliance

Where a culture of safety exists, legal and medical costs also drop, with workers becoming happier, more productive and loyal to the organisation, writes MALCOM MAREGA

O

n an average day we get through the motions of life without significant incidents, and it is easy to take for granted our exposure to various risks that could easily have resulted in injury, disease or even fatality.

Many risks exist in the workplace and vary in degree according to our roles and responsibilities either as a facilitators or operators.

The Occupational Safety & Health Act sets the basic requirements of both employers and staff with the

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aim of minimising exposure.

Many organisations, including those in the energy sector, have adhered to the law out of statutory obligation rather than the need to limit exposure and the incidental

SAFETY VS COMPLIANCE

costs that come with it.

The sector’s risk exposure includes electrocution and electric shock.

The risks get multiplied in industrial contexts where the energy needs are high and thus people deal with higher than usual power loads.

Think of the dangers of electricity near water, a fall from height or a fire outbreak as other risks linked to working closely with electricity.

Global standards Designing and planning of circuit systems in both commercial and domestic settings to reduce the risks of exposure and other consequences are considerations that may not exist in a policy document but would go a long way in reducing risk.

When doing this, one has to consider the design and build of power stations, the route to market and the consumer.

Global standards and best practice have served well to enhance safety

features with many of the products used locally adhering to the traditional British Standards and others.

However, a great opportunity exists to raise the bar if safety is seen as pivotal in the local energy sector especially as we have global players looking to compete for local market share.

Policy documents Multinationals have had to consider the various Health & Safety risks that concern their business in various markets and often have standards that go beyond local legislation.

The risk though is that they may not operate to those standards in the local market due to limited policing or understanding of the statutory requirements.

They may also be faced with the another local challenge —well written safety policy documents that can easily end up gathering dust on the

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SAFETY VS COMPLIANCE

any work engagement. Failure will often mean additional costs to the employer in form of medical bills or insurance costs, loss of work time and litigation from affected staff.

Effective training On the flip side, when a culture of safety exists within an organisation, not only would legal and medical costs be limited, workers also become happier, more productive and loyal leading to higher profitability.

Training is essential for an effective safety culture in any industry. It is important to keep in mind that the perspective with which training is carried out needs to go ‘beyond compliance’. A good example is the fact that the law requires us to wear seat belts while driving on our roads.

Now there are two reasons that the average person would wear their seat belt: because they may be stopped by the police for not being compliant, or because the seat belt may save their life in the case of an accident.

shelves as implementation does not come easily in this market.

The local workforce is often subjected to varied standards that are often low from a health and safety perspective and there is a gap that needs to be bridged to ensure a high level of compliance through the entire industry.

Additional costs For Health & Safety to be effective, it often requires the buy-in of top-level management, which then

allows it to trickle down through the rest of the organization. Sadly, for many top managers the cost of implementing high HSE standards often serves as a barrier especially since the risk perspective is often highlighted more than the benefits of having a culture of Health & Safety within the organisation.

The latter is a ‘beyond compliance’ attitude and this is the mindset change. This shift is what will carry us into a new era that ensures every player in the energy sector effectively contributes towards safer workplaces

“Low frequency of incidents has seen safety being taken for granted in the energy sector as most organisations lower their own standards to the bare minimum prescribed by Injury, disease and death should not law”, says Malcom be acceptable in any workplace as the natural expectation of any work- Marega-Business Development Optisafe er is that they will be able to return to their family safely at the end of

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Transforming Communities & Changing Lives Providing renewable energy solutions for the Big Four Agenda

+254 20 2346431 info@epicenterafrica.com www.epicenterafrica.com

THE BIG FOUR

Innovating and scaling up for THE BIG FOUR

26 WATTS UP MAGAZINE MAY-JUNE

THE BIG FOUR

The energy sector doesn’t have to reinvent systems of the future. It should deploy existing plans to transform the lives of millions of people

By Cynthia Wanjiru

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hen you harness the power of energy creatively, you can change the world. Thomas Edison invented the light bulb in 1878, but that’s not when the light bulb changed the world. The change happened when people around the world discovered ways in which to use the light bulb to transform their own lives and those of others.

The world has enough latent capacity for ener-

gy-powered innovation to shift the trajectory of global development.

The world needs more disruption that taps into those energy-powered innovations and transforms lives, not only among the ultra-poor but across every economic stratum in society.

Scalable models As the President Uhuru Kenyatta’s Big 4 Agenda takes shape in form of housing, manufacturing, agriculture and health, the challenge is on the energy sector players not to invent systems of the future but to deploy them at scale by listening closely to customer needs, designing scalable business models, and executing plans that are capable of transforming the lives of millions of people through the use of energy.

The greatest effort among energy-focused innovators today is going into either advancing the adoption of alternative forms of energy generation or increasing the efficiency of technologies for existing applications.

What opportunities exist to harness the power of energy to transform the lives of 10 million people should be

the focus.

Customer needs The country is laden with innovations, project papers, pilot projects that have not, and probably never will, see the light of day. There is need to escalate the innovations and prototype ideas that can be scaled up.

One of the challenges in the energy space is the transfer of skills, innovations and technical programs. This leads to low adoption of innovative ideas that can accelerate the big four agenda Transformative vision The light bulb is an iconic emblem of ideas and innovation. It is difficult to imagine the realities of daily living before its invention, but consider Thomas Edison’s vantage point: he imagined an electrified world before it existed, and he brought that transformative vision to life. For millennia, open flames from fires and torchlight were supplemented with expensive candles and oil lamps that exuded weak light and filled homes with smoke.

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27

THE BIG FOUR

The light bulb put electricity to use with revolutionary consequences: It transformed lives by decoupling humankind’s work and rest schedules from the cycles of the sun. It made our environment safer at night and brightened our homes. It illuminated playgrounds for the human imagination.

“

The greatest effort among energy-focused innovators today is going into either advancing the adoption of alternative forms of energy generation or increasing the efficiency of technologies for existing applications

When electricity became available as a form of power in the 1800s, an explosion of innovation began. This innovation was fueled in particular by the demand for better, more affordable light. Thomas Edison’s famous bulb was just one of many light bulbs invented at that time, and it was not the first.

Continues on page 35

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MWANGAZA mitaani

OPINION

“Internally generated statistics indicate that mobile money accounts for about 86% of all payments for electricity”- Dr. Ken Tarus, PhD, is the Managing Director and CEO of Kenya Power

Why our service delivery is ahead of trend

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OPINION

Dr. Ken Tarus, Managing Director and CEO of Kenya Power

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OPINION

Kenya Power upgrades IT platform to ease purchase of tokens after rapid growth of customer numbers, from 2.7 million to 6.5 million in just five years

I

t is the dream of any business to sustain the highest level of service to delight its customers.

Hence the constant quest by organisations to deploy new strategies that ensure they remain market leaders by securing and increasing their customer base.

The decision to adopt new ways of increasing levels of satisfaction among customers is informed by changing operating environments, customer characteristics and needs among other factors.

Therefore, constant innovation based on observed consumer trends is key in ensuring improved customer experiences. At Kenya Power we are firm believers of this principle.

The Company has constantly sought to understand its customers better by taking into account their dynamics and emerging immediate needs even as it embraces technological innovations to enhance service delivery.

Kenya Power introduced the prepaid metering system in 2009 as one of the methods of retailing electricity.

Multiple channels The number of customers on the prepaid platform has grown over the years to the current 4.5 million. Consequently, the Company has consistently pursued ways of ensuring that the prepaid service is efficient and that it offers the convenience it promises to customers.

These include the establishment of

KPLC Customers queuing in one of the banking hall 32 WATTS UP MAGAZINE MAY-JUNE

OPINION

mobile money platforms, point of sale kiosks and recruitment of vendors to offer multiple channels for purchase and delivery of electricity tokens.

through the mobile money channel, leading to slight delays in remitting payment through the paybill numbers, token generation and credit of postpaid customers’ accounts.

Kenya Power currently has contracts with more than 15 vendors supporting the prepaid system, in addition to the Company’s operated pay bill numbers 888880 and 888888 for prepaid and postpaid services respectively.

With this realisation, the Company recently undertook an upgrade of the IT platform that supports the mobile money payment channel in a bid to fast track token generation and receipt of payment for postpaid bills.

Mobile money Internally generated statistics indicate that mobile money accounts for about 86% of all payments for electricity. The Company’s total customer base has grown tremendously in the last five years from 2.7 million to the current 6.5 million customers, putting a strain on the traffic

Direct integration The upgrade involved a direct integration of the Kenya Power system to mobile money operators’ systems to ensure that all payments made through the two paybill numbers are received and tokens generated and customer accounts credited on a near real-time basis.

Prior to this development, the Company’s system was linked to mobile money operators through a mobile vending gateway which not only served requests for mobile money payments from Kenya Power but other companies too.

Continuous improvement In addition, the system upgrade has created an avenue for the creation of an application that will see postpaid customers self-read their meters and remit the data online for generation of bills.

“As we move forward, we will continue to take advantage of advancement in technology to drive our business by continuously improving our IT systems as we seek different ways of improving customer experience”

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SOLAR ENERGY

Enforcing solar heating rules

New buildings have easily incorporated the installations in their designs but the buildings completed eons ago risk weakening their structures by adding such features, writes NDUKU MUEMA

T

he Electricity Regulatory Commission (ERC) has started carrying out random checks on buildings and houses in an effort to test compliance with its regulations on solar water heating systems. The regulations require that a home that uses more than 100 litres of water a day must install the systems. The regulations are also aimed at homes and hostels. Restaurants that are serving more than twenty meals a day and laundries that handle more than 20kg

of clothes are also required to use solar water heaters.

Malls and schools lead in use of solar energy in Kenya More people are awakening to the fact that powering, heating and cooling homes and offices using conventional energy is very expensive. This realization has seen renewable energy gain a lot of popularity. The world is also gearing towards ensuring access to affordable, reliable, sustainable and modern energy for all.

Solar power is one type of renewable energy that has received a lot reception.

Ancient buildings One of the biggest challenges to the compliance with the new law is the alteration of buildings that is threatening the structures. The main challenge is on how these buildings will be solar compliant and yet they were built so many years ago. While some building have been weakened by the installation raising a lot of concern on the safety of the building.

The solar systems are not yet standardized and are breaking down at high rate which is raising a lot of concern in the country especially to homes. Pipes are breaking down and the system getting rusty within a short time. The Kenya Bureau of standards should enhance the surveillance of these products.

The net metering programme is gathering steam with a push by Private sector to sell the excess power to the grid. We are seeing an increase in this kind of arrangement with large power customers investing in hybrid systems

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THE BIG FOUR

Universal currency But Edison’s iteration made the light bulb practical, and his business acumen made it commercially viable.

His vision spurred the creation of lighting systems for homes and entire cities, and his access to capital gave him the means to execute that vision.

Edison’s success created an entire ecosystem of innovations and businesses, including incremental improvements to the light bulb and the rapid electrification of homes and workplaces. The electrification of lighting in turn led the way for many other inventions that relied on this new system of grid-based energy.

“Energy is the only universal currency: one of its many forms must be transformed to get anything done” The light bulb’s evolution—from flame to incandescent, fluorescent to LED— is emblematic of the progression of energy-powered innovation.

Successive innovations were built on each other and have continued to refine lighting technology in ways that harness energy more efficiently.

Think boldly The lessons the light bulb offers to energy innovators, stakeholders’ utilities, and private equity are clear: Use promising energy systems as

the basis for innovation. Focus on practical inventions.

Capitalize on the potential ecosystem of business that exists around important new innovations.

Create infrastructure if it does not already exist.

Think boldly—imagine a transformed world, as Edison did, and work to bring your vision to reality.

“Energy is central to nearly every major challenge and opportunity the world faces today - be it for jobs, security, climate change, food production or increasing incomes access to energy for all is essential.

Sustainable energy is opportunity – it transforms lives, economies and the planet”

Thomas Edison, the inventor of the light bulb WATTS UP MAGAZINE MAY-JUNE

35

OIL & GAS

LPG pitch: Clean and Affordable

Though seen as a fossil fuel, the uncelebrated liquefied petroleum gas produces no soot and emits 50 times less pollutants than biomass burning stoves By Envorifit

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hen people think of clean fuels, liquefied vesting wood, which prevents deforestation. petroleum gas (LPG) – a fossil fuel – is not the first thing that comes to mind. However, While studies are still being conducted to determine the LPG is one of the few clean cooking options that have health impact of biomass stoves, LPG has had clear reproven health, environmental and cost savings bene- sults as one of the only fuels with emissions below the fits compared to traditional and unimproved biomass World Health Organisation guidelines, demonstrating cooking methods. Because it is derived from petroleum, decreases in respiratory and other infections. many environmentally- focused funding programmes immediately disregard LPG cooking solutions. Instead, Easier, cleaner they prefer cooking solutions focused on biomass (wood In high-income countries the majority of people cook and charcoal) because they can be with electricity or piped natural gas. used renewably even though trees Because it is more conve- Cooking with solid fuels such as are rarely harvested sustainably in nient to buy charcoal than wood or charcoal still happens, but areas that rely on biomass to cook.

LPG, people in emerg- is almost always done by choice.

ing markets pay as much as $1 per day for it when they make daily purchases. However, if an equivalent amount of LPG could be purchased daily the cost would be only $0.56 per day. If the option to make daily LPG purchases was available it would be nearComplete combustion LPG is a byproduct of the refine- ly half the cost of cooking ment of crude oil and burns cleanly with charcoal.

As the country dithers with the rapid de-forestation across the country, the LPG should be the most immediate option for the government.

Although a program me is being set up and implemented by the ministry of energy through National Oil Company of Kenya the penetration and access will be a key challenge to all the players.

without soot, emitting 50 times less pollutants than biomass burning stoves. In addition, replacing biomass with LPG removes the burden of har-

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In the developing world, people cook with solid fuels because it is the only fuel they can afford which matches their earning abilities and spending habits. Cooking over biomass is time consuming and takes hours from women each week that could be spent on productive activities or leisure. Given the option, almost every person who cooks with biomass would use LPG if they could, and for the same reasons it’s used elsewhere. LPG is a cook fire at the click of a button – it is faster, easier and cleaner.

The biggest barrier to universal LPG adoption is af-

OIL & GAS

fordability. However, this barrier is getting lower every day, thanks to household solutions that use cutting edge technology to address energy poverty. The challenge is now the enduring perception that LPG is expensive.

hand outlining the benefits of LPG. The challenge lies with the middle men in the value chain who buy the cylinders from the targeted consumers and still make a profit selling in the black market.

Household budget Because it is more convenient to buy charcoal than LPG, people in emerging markets pay as much as $1 per day for it when they make daily purchases. However, if an equivalent amount of LPG could be purchased daily the cost would be only $0.56 per day. If the option to make daily LPG purchases was available, it would be nearly half the cost of cooking with charcoal.

While the government efforts are noble, the beneficiaries of the subsidized gas cylinders might not enjoy the benefits without behavior change strategies. The use of the local administration chiefs,’Nyumba kumi’ team leaders and village headman can help keep the mission alive by monitoring and arresting the people selling the gas.

There is need to develop a refilling and distribution model of Pay As You Go is critical to ensure sustainability of the weaning program. Distribution points must be established near the homes to make it more convenient than fetching firewood

Over 80 per cent of Sub-Saharan African cooks using charcoal, much of it being paid for daily. These daily charcoal purchases cost families 76 per cent more – around $30 per month for charcoal versus $17 per month for LPG. Buying fuel this way can cost families up to one third of their income.

“The biggest challenge to universal LPG adoption has been affordability but this barrier is getting lower every day, thanks to household solutions that use The government’s efforts to subsidize LPG gas are a welcome move to lead the transition from biomass. How- cutting edge technology to address enever, more consumer education needs to be done before ergy poverty.”

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OPINION

We’re on the final leg of journey to stable power

KETRACO has embarked on several landmark projects, including building regional interconnectors to strengthen its systems and boost power evacuation By FCPA Fernandes Barasa

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hat would a world without electricity be like?

Our households would be dark, relying on kerosene lamps to light our homes, raising concerns both environmentally and in terms of health. Our growing number of industries would be inefficient as they would be relying on diesel-powered generators for production, which is unreliable and time consuming.

Think about our hospitals, the patients who are in intensive care units whose survival depends on electricity-powered machines.

We have our schools where pupils and students need power to study and have options in the future.

Electricity is so crucial that nearly every feature of modern civilisation depends on it. It is fundamental to modern life.

Electricity is ultimately a critical infrastructure for any economy to thrive. It is evident that there is a growing demand for power in Kenya as more industries, homes, schools, hospitals and food security projects are being set up.

The Kenya government, through KETRACO has been mandated to ensure that every part of the country has access to power and to

enhance reliability, reduce interruptions and always be ahead of the demand.

Clean energy Although people plug into the electric grid every day, most don’t give a thought as to where it came from.

When Michael Faraday discovered the principle of electricity generation by inducing electric current by moving magnets inside coils of copper wire, I am sure he had a vision that the world would one day thirst for electricity to make lives better.

In fact, Faraday’s process is used in modern power production, only that today’s power plants produce much stronger currents.

Ultimately, access to electricity is a hallmark of advanced societies and a basic requirement of economic progress, and this must be supported by an enabling environment with the right policies, regulations and incentives. According to the World Bank’s state of electricity access report 2017, more needs to be done to increase electricity penetration and meet demand.

Greenhouse gases Meeting the global target for electricity access while achieving the Paris Agreement’s goal of limiting global warming to below 2˚C will

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require a major shift towards clean energy In Kenya, focus has been shifted to clean energy. By clean energy, we mean electricity that does not pollute the atmosphere when generated or used. It is also renewable which means it can be used over and over again. The non-renewable sources of energy emit greenhouse gases causing the Earth’s atmosphere to warm, which scientists tell us will cause the climate to change. It is understood that this will cause more extreme weather, the spread of diseases and threaten the habitat of all living things.

OPINION

Renewable energy Kenya is advantageously located where wind, solar and geothermal sources are available. As such, KETRACO, in partnership with sector players within the Ministry of energy, is embarking on numerous projects that will be used in the transmission of high voltage clean energy, nationwide and regionally.

There are various green energy projects in Kenya, for example, wind in Ngong, Isiolo, Lamu and solar in many parts of the country.

What this means is that areas such as Baragoi, South Horr among others, will open up and attract investors which translates to economic growth. When power is generated in these remote areas, it means that local communities will benefit before KETRACO can evacuate the surplus to other local centres.

We cannot forget to mention the geothermal projects located in Olkaria. Geothermal is capital intensive because it requires drilling of the wells but once you connect the wells to the power plant, it is inexhaustible. What more, it is the

“We are working with development partners, reputable power utility firms and organisations, local communities and projects-affected persons to deepen power infrastructure countrywide” cheapest source of power.

Big 4 Agenda Electricity access is critical for achieving the Big 4 Agenda as well as Vision 2030 agenda for sustainable development.

The Sustainable Development Goals (SDGs) embrace the need for economic development that leaves no one behind and gives everyone a fair chance of leading a decent life.

The seventh goal acknowledges the importance of affordable, reliable, sustainable and modern energy for all. But energy is also essential for all the other targets, including erad-

icating extreme poverty, eliminating avoidable child deaths, and achieving universal secondary education, more inclusive growth, gender equity and sustainable land-use.

The Big 4 Agenda and SDGs are in line with KETRACO’s mandate as outlined in the Strategic Plan. The five-year plan identifies national development challenges in the electricity sub-sector that need to be addressed in order for Kenya to achieve its goal of being a middle-income, industrialised and prosperous economy.

Seeking partners We are working with development partners, reputable power utility firms and organisations, local communities and projects-affected persons to deepen power infrastructure countrywide.

The fact that we all endure erratic electricity now does not mean the situation will be the same five years to come. The Kenya government through KETRACO has embarked on landmark projects in the following categories - system strengthening, power evacuation, regional interconnectors and electricity access projects.

The company is also playing a critical role in enabling the success of the Big Four which are instrumental to Kenya’s economic transformation.

As the state agency charged with ensuring that we have a robust high voltage infrastructure all over the country, we are happy to report that we are on track to ensuring that along with our sister agencies, Rural Electrification Authority and Kenya Power, universal access to electricity is a reality by 2030

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THE WORLD CUP

A portrait of future stadiums

The Brazilian stadium, MineirĂŁo, powered by 6,000 solar panels and with a potential to power 1,200 households, is natural in every sense of the word By Kelvin Mabonga

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40 WATTS UP MAGAZINE MAY-JUNE

Russia has finished constructing the 12 stadiums for the 2018 World Cup, and of these, 9 have received certification of BREAM. The stadiums have adopted a sustainability and efficiency model that has made the 2018 FIFA tournament the most green in the world

THE WORLD CUP

I

n recent years, FIFA has become the world’s first international sports organisation to join a UN climate initiative. In 2014, we were introduced to the first-ever solar powered World Cup stadium. The Brazilian stadium, Mineirão, was powered by 6,000 solar panels and had the potential to power 1,200 households.

The energy created from the panels was unable to be fully stored so much that just a small percentage of the generated energy went to powering Mineirão, and the other saved energy was transferred to consumers. The success of this stadium, along with the green movement; have encouraged Russia to accept the Building Research Establishment Environmental Assessment Method’s (BREEAM) environmental standards for construction. Russia has finished constructing the 12 stadiums for the 2018 World Cup, and of these, 9 have received certification of BREAM. The stadiums have adopted a sustainability and efficiency model that has made the 2018 FIFA tournament the most green in the world.

Plants and trees The location of the stadiums was important for their development as temperature changes and geographical barriers needed to be accounted for. Some of them are located next to water sources, so flood barriers were built along with waste removal and drainage systems so no contamination occurs. The stadiums in and around urban green complexes protected several plants in the environment needed to have several plants and trees protected and replaced to maintain the standards originally placed before them. Overall, these stadiums are attempting to reduce energy consumption significantly compared to similar stadiums across the world, which will hopefully educate the public on environmental sustainability.

Natural lighting There are many details that have gone into constructing these stadiums an environmentally friendly stadium including lighting, water, materials, accessibility, greenhouse gas (GHG) emissions, and heating systems.

Natural lighting strategies have been optimized during the day by having translucent materials and open roofs.

Metal-halide lamps will be used for stadium lights, which are the only stadium lights that meet the standards for energy efficiency and brightness for playing.

High efficiency LED lights have been used outside and in offices and rooms in the stadium.

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WORLD CUP

Rain water The use of water-saving plumbing systems with sensors and water flow shut-off systems, dual-mode device flush toilets, individual automatic flushing urinals, and the separation of technical and drinking water systems contribute will contribute to saving more water. The stadiums have systems that collect rainwater for watering the fields. Construction materials consist of energy efficient and environmentally friendly insulating materials from resources that are mainly found in Russia so that importing does not generate more GHGs. Sun use Accessibility of the stadiums is increasing due to the development of more parking spaces for private cars, a public transportation system for spectators that goes no further than 500 meters from the stadium to reduce GHG emissions, and new subway, railroad, and highway systems to allow easier routes of trans portation between cities.

Heating and air-conditioning strategies include thermal insulation of the stadiums, the use of sun protection or

Solar panels at Krestovsky Stadium St. Petersburg

shading systems and louvers in the office areas of a stadium, and heat recovery of exhaust air in air-handling units of the building, which utilizes highly efficient heat exchangers. The current GHG emission calculation demonstrates that the estimated concentration of polluting substances emitted at the construction sites does not exceed the maximum allowable concentrations just yet Renewed energy for the World Cup

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THE BIG FOUR AGENDA

Sacco funding for the Big 4 Agenda

After decades of whirlwind growth that has mobilized over Sh500 billion in assets and a savings portfolio estimated at Sh420 billion, the cash-flush cooperatives societies can easily finance the long term projects. Stima Sacco being one of the major players in this industry is keen on contributing towards the attainment of the government agenda by Chris Useki CEO Stima Sacco

T

he Savings and Credit Cooperative Societies (Sacco) movement in Kenya is billed as the largest in Africa and among the top 10 globally Sacco-driven economies.

With over Sh500 billion in assets and a savings portfo-

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lio estimated at Sh420 billion, the SACCO movement in Kenya constitutes a significant proportion of about 20 per cent of the country’s domestic savings. The Sacco revolution in Kenya has placed the country in the global map, which according to the International Co-operative Alliance

THE BIG FOUR AGENDA

(ICA), Kenya’s cooperative movement is the fastest growing in the world and is ranked the best in Africa and the 7th best globally.

Currently, cooperatives employ over 500,000 people directly and over 63 per cent of the Kenyan population derive their livelihood directly from cooperative-based economic activities. This is the reason why we are working tirelessly to increase access to financial services to majority of Kenyans who cannot access the mainstream financial products. ‘It is our social responsibility to ensure that Kenyans have a safe haven for savings and access to affordable credit’ said the Mr. Chris Useki, Stima Sacco CEO

Affordable Health care Secondly the health sector has not taken great advantage of the Sacco movement. The 14 million membership can easily be covered by medical covers ran by the insurance companies or the government owned NHIF. The large membership is fertile ground for expansion of health facilities and services. The economies of scale will bring down the cost of healthcare to its members.

In stima sacco for instance we are fine turning an micro insurance product that will help a majority of our members who have no form of health cover to cater for their medical expenses. I believe that as a movement we can do more to ensure universal access to healthcare by our fellow citizens.

Financial constraints At independence in 1963, Kenya had a mere 1,030 reg- Agriculture istered co-operative societies with a total share capital Agriculture is the backbone of the economy and the of Sh100, 000 but today the number biggest employer in the country with 70 has grown to over 16,000 registered co- “Saccos should proper cent of membership is agriculture operative societies with a membership vide finances, access based generated from farmer being of over 13 million people and a turnemployed in the sector .These means to its customer base over of over Sh100 Billion With the and strategic linkages the bulk of our members are farmers. sector controlling such huge resources The Saccos are proud to provide funds across the value chains and loans to its members for mechaniand hence it cannot be ignored in the implementation of the big four agenda. to speed up achievezation of their firms through provision ment of the Big Four of irrigation kits, water conservation Affordable housing kits at low prices that are negotiated.

Agenda” The provision of affordable housing This funding should be structured to and building 500,000 homes in five fit into the cycle of the agri business, years will involve the Sacco’s as the epicenter. Growth this way fathers and Saccos can mutually benefit from in housing is hampered by financial constraints which this venture. The Sacco’s can finance opportunities the makes it very difficult for members to own homes, with agricultural value chain that can minimize post-harthe market of only 30,000 homes owners the potentials vest losses through provision of cold room storage and to attain 500,000 homes requires thinking out of the value additions box.

Manufacturing sector Mobilizer of funds When we look at the manufacturing sector Sacco’s have The Sacco’s are key mobilisers of funds and they can the best relationship with our members we understand direct members to any investment that they feel has their needs and have deep financial relationship and we good rate of return and of benefit to members. The don’t follow the banks procedures hence we can lend Saccos movement can buy in bulk and break it down with much more flexible terms than banks .Hence we for its members while giving them affordable loans at are able to unlock the opportunities to finance manulow interest rates. We at Stima Sacco are in the process facturing facilities, startups and SMES with much ease, of coming up with a product that is housing specific Hence the role of Saccos in attainment of the Big 4 and will bring many members on board in terms of Agenda extends to providing finances, access to cusprovision of long term funding that will strictly be used tomers and market and strategic linkages across the for housing. “It is my desire to see as many Kenyans value chain as possible own a place they call their own” he added.

This to me will be the greatest gift to Kenyan by the cooperative movement.

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THE BIG FOUR AGENDA

Changing lives with every mile of electricity

Phase one of the grand project to enable 314,200 households to light, cook and communicate differently. The second phase launched recently by the CS to double the number By Dr. Ken Tarus

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hristine, a 20-year-old girl in Embu County, lives with her family a few kilometres from Ishiara town. She has lived here all her life and her life has been good.

Recently, however, when her home was connected to electricity through the Last Mile Connectivity Project, her life and that of her whole family underwent a phenomenally positive change.

Previously, she or one of her siblings had to travel to Ishiara at least twice a week. The trip to town was necessary for a variety of reasons, one of which would be to buy paraffin for the lamps at home. For Christine, lighting and cooking was not really her number one priority. At her 20 years, she needed to have her phone charged, and she would carry phones of all the family members.

This was the only way to ensure

that she remained ‘connected’ to her friends via the all so important social media! Failure to make the trip meant being in the dark, literally, and falling behind the trend, a situation she found especially undesirable.

Lifestyle For transport alone, Christine’s family, like many other families in similar circumstances would spend at least Sh400 shillings a month, just for those routine activities.

That spend didn’t include the cost of paraffin, and the cost of charging an old car battery that kept their TV and radio powered. Electricity has provided to the home a new beginning, a lifestyle that they had long only dreamt about.

For many, Sh10 may look like a little amount to spend on charging a phone per session. But for the five mobile phones in a single house-

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hold, charging twice a week costs Sh100. This works to a Sh400 per month for the household. If you add the cost of transport, paraffin, charcoal, firewood and charging the car battery, then it becomes clear that the monthly spend on energy for the family was quite high.

Households Through the Last Mile Electrification Programme, Kenya Power with the support of the Government and

THE BIG FOUR AGENDA

multilateral funding agencies such as the African Development Bank (AfDB), and the World Bank is connecting millions of Kenyans to electricity.

The first phase of the Last Mile Electrification Project is at an advanced stage and by the time it is completed, it will have connected 314,200 households to electricity at a cost of Sh13.5 billion. This first phase of the project was 90 per cent

funded by the AfDB while the rest of the cost has been funded by the Government. Under the second phase of the project which was recently launched by the Cabinet Secretary in the Ministry of Energy, Hon. Charles Keter, another 314,200 households will be connected to electricity at a cost of another Sh13.5 billion. AfDB will cover 87 per cent while the Government of Kenya will provide 13 per cent of the total amount.

Tremendous growth The two phases of the project involved the construction of low voltage lines from more than 10,000 existing transformers towards homes to enable lower the cost of connecting electricity to homesteads.

It is this type of support that has seen the cost of connection to

Cabinet Secretary Hon. Charles Keter lighting up homes under the Last Mile Programme

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THE BIG FOUR AGENDA

“The substantial positive changes that occur in households as more Kenyans are connected to electricity also affect their education, health, nutrition, entertainment and quality of life” electricity lowered to Sh15,000 per household in the last three years.

The third phase of the programme is under preparation and will cost Sh15 billion to enable more than 12,500 households get connected to electricity.

The third phase will involve extension of low voltage lines from existing transformers as well as the installation of 1,000 new distribution transformers across the network in all the 47 counties to further the reach of the grid and to boost access to electricity for Kenyans who will not have been reached by the first two projects. Through this Last Mile project and other similar projects,

Kenya Power and the Government has seen tremendous growth in access to electricity.

One area that we are particularly proud of is the electrification of all schools in the country. Nelson Mandela said, “Education is the most powerful weapon which you can use to change the world”. With over 90% of schools electrified, we have seen the retention of children in school from lower primary to secondary schools. The hours of reading have increased considerably leading to better grades in schools and of importance is the girl -child who had to fetch firewood on daily basis thereby reducing her reading time. Also, there has been marked improvement in girl’s performance in schools where electrification has occurred.

The access to information and communication technology is building the capacity of the young people across the country to share information real time and identifying opportunities more or less the same

time. There the BIG 4 agenda sits on a strong foundation where the country is educated with opportunities at their doorsteps for economic empowerment.

Positive changes The number of households connected to electricity rose to 6.2 million in the last financial year from 2.3 million customers in 2014.

As more Kenyans are connected to electricity, substantial positive changes occur in households. These changes have numerous positive effects on the members of the household including education, health, nutrition, entertainment and quality of life. Electricity is an important component and an enabler that every home in Kenya deserves.

As the Government continues to lay emphasis on the key pillars of food security, manufacturing, affordable housing, and universal healthcare, all these, are to a great extent, directly affected by availability of energy

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EAST AFRICA

Raising the oil millionaires of Uganda

Oil mining at Kaiso-Tonya area in Hoima District.

Capacity building must start early to create skillsets that will transform the farming communities into oil merchants from 2020

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ttention shifts to lack of local talent as Uganda prepares to commence its oil production in 2020. Efforts to develop human capital through training have not been very visible even as the landlocked state lines up mega oil-related projects in the next two years. A number of questions are lingering.

Will these opportunities be open for East Africans?

lion (USh7 trillion) annually in revenues. That same amount has been pumped into the economy in the last 10 years at exploration stage. Another $7 billion has been earmarked for development of the oil fields. The numbers look good but what is worrying is human resource. Watts Up examines the economic prospects through a review of the following flagship projects:

For starters, Uganda’s plan to hit the market by June 2020 is aligned to government’s plans of turning the economy into ‘middle income status with oil revenues as a catalyst.

The World Bank predicts that with commercial oil production at peak Uganda, could rake in at least $2 bil-

The Oil refinery The biggest deal of building the oil refinery was assigned recently. The refinery deal will cost approximately $3b dollar and is led by US Company General Electric this is big deal for US government as it continues to gain momentum in infrastructure

projects in East Africa country.

Once complete the refinery will be able to do 60,000 barrels of crude oil per day much of which will be sent to the Capital Kampala through the Pipeline. The majority of the Viscous crude will bypass the planned refinery to be exported to the Indian Ocean port of Tanga in Tanzania via world longest heated pipeline. This will create 5,000 jobs.

It important to appreciate the magnitude of project ongoing in the area to assess the impact of refinery business in the country The Airport New Hoima International Airport,

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over 5,000 people.

Oil field About $3.3b (USh12 trillion) is the combined investment by oil companies since 2012 mainly on acquisition of seismic data and exploration activities such as drilling of oil wells. $6.7b (Shs24trillion) is the capital expenditure for developing the oil fields borne by the oil companies, although government has a 15 percent stake in each of the licenses through the Uganda National Oil Company (UNOC).

The scramble for the billions in oil construction works is in overdrive.

The airport is costing $ 309 million.

The percentage cost of the local content was also increased from 20 to 30 per cent which will be around $92.7m. The airport will be critical to open up the region as tourist attraction and moving of equipment.

The airport construction will employ over 3,000 people direct and when complete will provide employment to over 5,000 people directly and indirectly. The airport is being constructed by Israeli company SBI. The Roads An impressive road network has been put forward that will cover 600 kilometres with EXIM bank providing $531m credit line. The roads will be ready by 2020.

The roads have to be in place to facilitate different activities by the oil companies—France’s Total E&P and China’s CNOOC—which expect to

“The resource curse that has plagued many African states as a result of oil discovery should be avoided at all cost.” haul in an estimated three million to eight million tonnes of cargo during the Engineering Procurement and Construction (EPC) phase. The road at the construction stage will employ over 8,000 people.

Crude oil pipeline The 1,445km crude oil export pipeline is expected to run from Hoima through the districts Kakumiro, Kyankwanzi, Mubende, Gomba, Ssembabule, Lwengo to Rakai at the border to Tanga port at the Indian Ocean in Tanzania.

The section of the Ugandan pipeline is approximately $700m. The construction will start towards the end of the year and is expected to employ

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The curse The resource curse experienced in many African state on oil should be avoided at all cost. The most critical aspect is how to prepare the communities and the country at large to enjoy these benefits. The idea is to support the establishment of factories that can support the ongoing work.

These factories should be owned by Ugandans although partnership is also good. There is need to uplift the livelihoods past construction stage.

The economic empowerment of the local through businesses that are sustainable after the construction is key.

Capacity building Secondly the capacity building programme must start early to ensure that skills set are achieved both by the young, through college, older idle groups of people and the transforming the farming communities around there. As mentioned earlier connecting a grass thatched house is not transformation but developing that family to raise money to build a better house is more sustainable in the long run.

Despite that there is big shortage of qualified workers to work in oil sector

THE BIG FOUR AGENDA

Joining nuts and bolts of Big 4 Agenda

Eyes turn to the energy sector as the State seeks to leverage its role in connectivity, transportation, storage and lighting as the pillars of growth by James Ngomeli

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he frenzy of activities at the corridors of power all point to one direction. It’s an all-systems-go for the Big Four Agenda projects. The government has begun fine-tuning and aligning its resources towards revving up manufacturing, boosting food and security, building affordable hous-

School Laptop Project

ing and widening access to Medicare. These goals, to be achieved in the next five years, form the pillars of the government’s medium term development target.

This Edition of ‘Watts-Up’ Magazine seeks to put spotlight on otherwise a well-established correlation be-

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tween electricity consumption and economic growth. We take another look at the truism that economic empowerment will always depend on accessible, stable and affordable power.

A lot has been said on improving supply and reduction in cost of power for manufacturers. Lest we forget, energy is also an enabler that creates the very environment where demand for manufactured goods and services can exist. In this edition, we have chosen to understand the role that energy has to play in the attainment of Big 4 Agenda based on being an enabler in the following aspects: Internet connectivity Energy allows us to communicate and collaborate on a global scale.

Digital and mobile advancements have enabled breakthroughs in how we create and understand information and data – which in turn empowers us to make better decisions, including how we can use resources most effectively and efficiently.

THE BIG FOUR AGENDA

The rapid expansion of the electrification to all schools and trading centres is accelerating the flow of information which is crucial in trade and creating demand for products. Extending access to basic connectivity could enhance education systems, healthcare delivery, and other services critical to human development.

The e-government Digitisation of government services is one key area where energy plays a key role with access to Huduma centers, mobile phones chargers and Laptops as the first steps in improving factors of production. Goods and services can now be traded online across the globe creating employment and a $1billion dollar industry in Kenya.

Energy is allowing more people to access educational and knowledge resources, opening new gateways of opportunity.

Mobility models

Transportation has traditionally required a huge infrastructure investment, as well as substantial energy consumption to fuel mobility.

has made it possible for investors to put up manufacturing facilities across the country and create employment.

As new technologies create new options, norms and models for mobility are changing rapidly Gains in solar-power technologies are beginning to fuel cars, bicycles— even our roadways.

With access rate of above 70 per cent, it opens up opportunities for value addition and manufacturing at the rural areas. For example, if 20% of small scale farmers can engage in value addition activities research has shown that their incomes will increase by 50%.

New varieties of electric-assisted bicycles are expanding the range of the world’s most efficient form of transport. Private bicycle-sharing programs are growing rapidly, transforming how movement occurs.

Dramatic improvements in battery technology has increased the use of electric cars and hybrid cars in Kenyan market. Although driverless cars is gaining traction in Europe and drones are now transporting people in Dubai.

Energy will impact every aspect of transportation by making it easier to move from one place to another.

With internet and free movement of people and goods across markets

Finally, there is a strong correlation between energy access rate and reduction in poverty. It is critical for the government to develop monitoring and evaluation programs to assess the impact of increase in the electricity access rate from less than 30% in 2013 to currently over 70%, which is a fertile ground for the much awaited industrial take off.

Agriculture Energy enables efficiencies in farming, food production, and storage ensuring we can reach more people in the most efficient way while transforming the way we produce and consume food.

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THE BIG FOUR AGENDA

It’s becoming easier to grow food indoors like using hydroponics and aquaponics systems and the deployment of robots to further automate the manual labor of agriculture are all altering how we grow crops .

With hybrid systems of solar and electricity we are seeing crops growing and irrigated year round.

Food security Changing how we process, store, and distribute food will dramatically reduce food waste and enhance food security with the use of energy especially renewable energy we will see emergence of cold storage centers run by renewable energy across the country.

Solar drier

In Kenya we lose over 40 per cent of our farm produce and various energy sources can stem this loss.

With advanced technology drones can be used to pinpoint and spray particular pest with laser precision which is now happening in flower farms in Kenya.

The country’s irrigation strategy will strongly be linked to stable supply of electric power and mix of renewable sources. Growing crops grown all the year round will be a key intervention in reducing the impact of drought and famine.

As part of preservation, solar drying is useful technique that can be used to preserve food. Food products particularly fruits and vegetables require hot air in the temperatures range of 45-60C for safe drying i.e drying the products as to keep them edible and nutritious properties intact. Drying the products also helps in transportation cost of vegetables (as vegetables are 50% wet) it reduces the weight and size of those products. This could also apply in the fishing communities.

Solar drying is cheap ,temperatures are regulated and its hygienic while its more profitable to the farmers.

Irrigation using solar water pump

Dried fruits

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THE BIG FOUR AGENDA

“In Kenya post harvest losses contribute more than 40% losses. Integrating renewable energy in the whole value chain will reduce the losses by more than 30%. This will increase the GDP growth by 3%” Affordable health care Energy-powered innovations have driven human and health wellbeing advancements in diagnosis, treatment, rehabilitation, and quality-of-life medical applications.

New frontiers of health knowledge has been enabled by energy-powered technologies which is transforming the range of opportunities by extending human health and functioning. With expansion of highly sensitive medical equipment by government to the rural and county areas has provided medical

care provision options transforming healthcare delivery.

increased prevalence of hospital-acquired infections, among other factors.

Tele-health Connected medicine, which encompasses the tele-health, remote medicine, and mobile health domains, has made it possible to obtain quality medical care without regard to geography.

At the same time, energy has enabled technologies and organisational innovations that have enabled the provision of healthcare both in the home and at a distance radically reducing the cost of healthcare.

Tele- health innovations mean that wellness promotion, disease prevention, diagnosis, and (when appropriate) treatment can be provided by qualified health professionals via digital channels (mobile phone, tablet, and computer).

At the other end of the spectrum, localized networks are enabling a return to healthcare in the home when possible.

Innovations In the last five years the advantage of hospital based care has started to erode due to the high cost and

With rapid expansion of power and connection of health centres, homebased care has improved dramatically and has become affordable

“At the same time, energy has enabled technologies and organizational innovations that have enabled the provision of healthcare both in the home and at a distance radically reducing the cost of healthcare”

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Affordable housing One of the major triggers of development is electricity. Once there is power anywhere then settlements and businesses begin to crop up soon after. Buildings and homes sprout very quickly in places connected with electricity. That makes energy a key enabler for rapid urbanisation, supporting growth of buildings and homes that match the social and economic status of surrounding community Provision of affordable and decent homes is a priority for the government in achieving Vision 2030 and meeting the constitutional right to decent housing and sanitation.

If that is achieved, Kenya will have attained Sustainable Development Goal (SDG) number 10, which aims at making cities and human settlements inclusive, safe, resilient and sustainable.

A key area in the implementation of the Medium-Term Plan III, which is part of the ‘Big Four’ agenda, is a commitment to creation of 500,000 home owners in the next five years — an average of 275 everyday. With this mind housing developments are triggered by availability of amenities like power.

Any where there is power supply there is potential opportunities

Upcoming apartment

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for development of buildings and homes.

With assurance of faster connection of electricity fueled by programs like the Last Mile Program and Slum Upgrading, the housing sector has become a lucrative business because of the high rate of returns on investments

“One of the challenges in the housing sector is the high cost of services and materials by the stakeholders while the energy sector has stepped up its efforts to reduce connection charges”

COAL ENERGY

Why coal energy is a dirty necessity

What’s the hullabaloo about the Lamu coal project, for instance? It’s the second cheapest power source after hydro and no country in the world has ever industrialised without it as its base load! By James Ngomeli

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s the country waits with bated breath for the 600MW of renewable energy to be injected in the grid, we are continuing to ponder on what to do with the coal that is being touted as the solution to our country’s energy woes.

One thing is for sure: there is no country that is industrialised without having coal as its base load. We are seeing investment in coal gaining momentum in the developing countries. The world still lacks the expertise and financial might to produce only the clean coal.

With 1.2 billion people still in the dark, the cheapest

base load can only be found in coal.

And with many developing countries facing a huge shortfall of energy, coal is here to stay. The second cheapest source of energy, behind hydropower, has been a key player in our day to day lives.

Plentiful reserves Take for example, electricity generation, the cost of nuclear is at $60 per megawatt hour (MWH), natural gas is at $70, solar at $280 while coal sits at $40 MWH. With the advantage of its relatively low cost,

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coal adds on to its many pros by being in plenty and easy to extract. But that is not the only reason why coal is extracted. Coal also serves as a metal (metallurgical coal) which gives coal more advantage in its reason for continual use.

Since the 1980s, coal consumption has grown by over 140 per cent in Brazil, 425 per cent in India and 514 per cent in China. The economic and social progress made across these countries over the same period is well documented.

Remarkable example China, in particular, has been a remarkable example of the role that affordable coal can play in improving access to energy and supporting economic development.

Over the last three decades, according to World Bank estimates, 600M people have been lifted out of poverty — almost all of those in China.

Remove China from the mix and poverty levels in the rest of the world have barely improved. The link between access to affordable power from coal, economic growth and prosperity is clear. In China close to 99 per cent of the population is connected to the grid.

In Africa, about 60 per cent of the population does not have electricity especially in most rural areas. Coal has still presented itself as the number one contender in en-

suring that these households have access to electricity.

While in Zimbabwe, the country has just signed a US $1 Billion deal with SinoSteel in a development that will see the Chinese firm build a 400MW coal bed methane-fired power plant in Matabeleland North Province and setting up new ferrochrome smelters at Zimasco.

Primary energy Pakistan is facing a very serious energy crisis with many people going for 12 hours without power .The new Pak –china corridor has created an opportunity for the country to use the indigenous Thar coal reserves that will generate 6,600MW expanding the capacity by 25 per cent to 24,829MW .

The international Energy Agency forecasts that coal will remain among the largest single source of electricity generation for another 30 years with it currently accounts for 41 per cent of global energy and 29 per cent of all primary energy mining demand.

Botswana is investing heavily in coal with Botswana Railways building the government funded 132km railway line to connect Waterberg and Limpopo fields.

Botswana may very well be soon exporting over 10M tons of coal per year

Mining of coal in South Africa

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WOMEN IN ENERGY

Here’s why I see growth in solar systems What does Masterpiece Electricals do?

The venture started in the year 2006 after the Energy Regulatory Commission (ERC) registered it as electromechanical contractor. We sell and install generators, solar panels, solar water heaters, electrical materials and accessories for both domestic, commercial, industrial and corporate premises.

Our area of specialisation is in generators, electrical installations, solar powered systems such as plants, solar water pumping systems. We also install solar water heaters, solar powered electric fences and battery backup systems.

What are some of the challenges you encountered when venturing into this business?

There were not many ladies in the energy sector business. The few in the sector were employed meaning only a small handful of female entrepreneurs existed.

Being a male dominated sector, many people often assumed that any ladies were sales people, and they expected a male technician or partner to be the one giving the solutions to their enquiries.

Customers did not find it easy trusting a lady with a project, without male involvement. We had a female supervisor in charge of some projects and you would find even the male technicians would look down on her and it was difficult. But with time they came to accept her as they realised that she was good at what she does.

Sky is the limit as manufacturers, developers and home owners look for energy efficient solutions, says Virginia Muthoni Mwaura, proprietor of Masterpiece Electricals “To encourage higher usage of solar power, the government should consider providing similar tax incentives for batteries and inverters as it does to the solar panels in order to reduce the cost of installation�

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WOMEN IN ENERGY

What are some of the challenges you are facing in selling renewable energy solutions?

The solar energy sector is growing rapidly and is poised to be one of the more popular renewable energy sources. A major challenge though is the high initial cost of installation. Though the government has tried to reduce the cost of renewable energy, specifically solar powered systems by reducing tax on solar products, the prices for inverters and batteries is still way too high for many potential consumers.

This makes installation of solar as an alternative source of energy expensive, forcing many people to bypass storage altogether and only use solar energy during daylight hours. This does not allow them to reap the full benefits of this green source of energy. To encourage higher usage of solar power, the government should consider providing similar tax incentives for batteries and inverters as it does to the solar panels in order to reduce the cost of installation.

What advice would you give to ladies wishing to join the sector?

I would say that it is a good sector that has many opportunities. People have come to accept that ladies can do as good a job as their male counterparts. It is important to keep up with emerging technologies to ensure that the products or services offered are of the latest technology. I believe more and more women are

being accepted in the energy sector as equal partners whether in entrepreneurship, engineers or technicians.

Believe in yourself and you will make it.

What are some of the areas you would say have good potential for growth?

There is great potential in the solar energy sector as manufacturers, developers and home owners look for energy efficient solutions. Skilled local content in terms of technicians and business training is also growing to meet market demand of solar installation services. The sector is also seeing growth in terms of women technicians trained the solar sector.

The cost of electricity in Kenya is very high and many companies especially industries are looking into ways of having their own solar plants to meet their energy consumption without breaking the bank. The major setback is the cost of installation of these plants and there are companies that are financing these projects.

If the government reduces the cost of inverters and batteries, many domestic and commercial premises would install solar and wind energy. The price of goods manufactured in Kenya would also go down significantly because the power cost would go down.

What are some of the projects that you have undertaken?

Some of the projects we have done include construction of a 410kW grid tied solar power plant at the Kenya Ports Authority which enables them to use solar energy during the day and revert to grid power at night or on cold days when there is no sun. This has helped them reduce on the cost of power as they go green.

What plans do you have for the future?

We plan to bid for bigger projects as we feel that we have what it takes to handle large size projects. We also hope to continue being a positive role model for other aspiring women led energy businesses. The sky is only the lower limit for us!

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“To encourage higher usage of solar power, the government should consider providing similar tax incentives for batteries and inverters as it does to the solar panels in order to reduce the cost of installation�

EAST AFRICA

Another 5000MW march from Dar

While in Tanzania the land compensation schemes are purely driven by government and most of the land is communal, the building of Transmission lines for evacuation of power is more less a straight forward process with no litigation at all so far as James Ngomeli examines

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President Magufuli during the launch of Kinyerezi II Natural gas plant.

anzania plans to boost power generation capacity from around 1,500 MW at the moment to 5,000 MW over the next three years, according to the country’s energy ministry.

The Tanzania government has engaged top gear on an ambitious project to drive electrification across the country with a generation capacity of 5,000MW in the

next three years. This is a replica of the same initiative in the country where the 5000MW was envisioned but was not achieved through various factors.

With chronic shortages that have plagued Tanzanians for a long time, the investments in generation and distribution are taking priority in the next three years.

Key projects

The natural gas-powered Kinyerezi II plant, which began operating on May, was built on the outskirts of Tanzania’s commercial capital Dar es Salaam by Japan-based Sumitomo Corp using combined-cycle technology for 798 billion shillings ($353.72 million). It’s discharging over 240MW. The government is working on two more projects in Tanzania’s south that would generate 620 MW on completion.

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The government is also aiming at launching construction of a $3 billion hydroelectric plant at Stiegler’s Gorge in July that will produce 2,100 MW upon completion in three years’ time. The dam is along the Rufiji River. This will be the largest Hydro in East Africa although it has faced hurdles through the environmental cases. The country is moving forward with it.

ernment in form of land compensation which is not as dramatic as here in Kenya. The compensation aspect is makes Kenya a very expensive destination to implement infrastructure project. Laws have been enacted on how compensation will be carried out leading to court battles across projects in Kenya. The delay in paying exorbitant land compensation fees have led to expensive litigation that the exchequer is paying.

Achievable The Coal production for energy has been going on The community activism has increased the chances of although on lower scale but with approvals from the project delays with unreasonable demands across the Rukwa coal to power project the country expects country on ongoing projects. The chances for project 600MW from Coal. While the Mbeya delays in Kenya has risen from 26% coal –Fired station could be expand- Tanzania which has to 55%’ likely hood of delay’. This has ed to over 600MW. Therefore we do moved forward faster raised the profile of project risks in expect over 1300MW from coal. in tapping its natural the country attracting premium fines, charges and high interest rates .While resources than Kenya in Tanzania the land compensation The Tanzania’s march to 5,000MW …will be able to devel- schemes are purely driven by governlooks achievable and better the than Kenya due to various factors as folop over 2,000MW in a ment and most of the land is commulows: nal. The building of Transmission lines very short time.”

The demand for power is still very for evacuation of power is more less a high with a growth rate of energy straight forward process with no litigademand at 10% every year the market is still not yet tion at all so far. saturated. With electricity access at 36% the country is still very far away from achieving its goal of electricity Tapping resources access of 100% .While in Kenya what is worrying is Tanzania has moved forward faster in tapping into the access rate is at 74% while demand is at 1750MW their natural resources faster than Kenya. With the with installed capacity of 2300MW. With more than key base load being coal and gas which are easily 1000MW to be injected in the next one and half years mined and available they will be able to develop over there is great hope of the Big Four agenda taking 2,000MW in a very short time and much cheaper up the demand. The demand for power since the resources are available. Kenya is yet is subdued in the Kenya with efforts to tap easy energy resources like coal to increase demand underway and wind despite PPA agreement through various initiatives being signed years back. The like export processing country has had conflictzones. ing laws either in revenue sharing or newly Land compensation established county The projects in units Tanzania are fast-tracked with the support of the gov-

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