Energy Challenges in Kenya “Electrifying Kenya”

1. Energy Challenges in Kenya“Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum 21st October 2010

2. How many people in the world lack access to electricity in their homes? • How many people in the world rely on traditional biomass for cooking?

3. So What?..... • Poorer quality and more expensive fuels • Detrimental effect on... • Health (1.45 million deaths/yr from smoke inside the home) • Education • Income generation (agricultural & non-agricultural productivity) • Communications • Entertainment, Security, Comfort and Wellbeing • Environmental degradation – deforestation leading to landslides, flooding, desertification, etc. Modern energy services need to be sufficient in quantity, reliable and affordable so that the MDGs and other human and economic development goals can be achieved.

4. Key Challenges for the Electricity Sector in Kenya Insufficient generation capacity, weak transmission and distribution network – unreliable service Non-diversified fuel mix leaves the electricity network vulnerable to droughts and rising oil prices Poor grid penetration – approx 40% of population, 16 million people, without access to electricity and only 10% of rural Kenyans with access to electricity – social and ethnic injustice Low numbers of connections even in electrified areas – high cost of connection for users Expensive electricity tariffs for users due to rising fuel costs

5. Innovations for Electricity Sector Innovation and alternative solutions are VERY important – but they are even more vital on the “soft” side than on the “hard” For example: • Stima loan (80% of cost of connection at 15% interest, payments spread out over 1 year) to increase household grid connections • Favourable feed-in-tariffs for renewable energy (seek stakeholder consultation) • Training centres to build the capacity of rural project developers • Genuine commitment for increased renewable energy and electrification from politicians and civil servants alike Watch out for perverse incentives! Tax revenue from oil (6% of total government revenue); KPLC’s consumers pay for fuel costs; powerful incumbents including the parastatal National Oil Corporation

6. Into the Future • New constitution passed 27th August 2010 – increasing decentralization, more loopholes? • Ambitious targets set out in Vision 2030 – 22% rural electrification by 2012, 65% by 2022 and 100% by 2030 • Focus on wind energy and geothermal power, but additional thermal plants are being commissioned • Solar lanterns • Decentralised mini-grids • Biogas for electrification and cooking • Solar thermal to produce electricity? • Assistance could take the form of: • Investment in local entrepreneurs and energy businesses (there are plenty) • Research and Development to reduce the cost of PV and wind technologies • Provision of innovative financing mechanisms to aid project development in rural areas

7. aly21@cam.ac.uk http://www-g.eng.cam.ac.uk/sustdev/