energy challenges in kenya “electrifying kenya” annabel yadoo mphil ma centre for sustainable...

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

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Page 1: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

Energy Challenges in Kenya“Electrifying Kenya”

Annabel Yadoo MPhil MACentre for Sustainable Development,

Cambridge University

Cambridge Energy Forum21st October 2010

Page 2: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

1.How many people in the world lack access to electricity in their homes?

2.How many people in the world rely on traditional biomass for cooking?

Page 3: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

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.

Page 4: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

Key Challenges for the Electricity Sector in Kenya

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

Insufficient generation capacity, weak transmission and distribution network – unreliable service

Page 5: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

Innovations for Electricity SectorInnovation 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

Page 6: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

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 technologiesProvision of innovative financing mechanisms to aid project development in rural areas

Page 7: Energy Challenges in Kenya “Electrifying Kenya” Annabel Yadoo MPhil MA Centre for Sustainable Development, Cambridge University Cambridge Energy Forum

[email protected]

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