energy efficiency: a kenya power perspective

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ENERGY EFFICIENCY FROM THE KENYA POWER PERSPECTIVE AFRICA CARBON EXCHANGE (ACX) ENERGY EFFICIENCY WORKSHOP APRIL 24-25 th 2013 Eng. Margaret Kanini Senior Engineer, Demand Side Management Kenya Power

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ENERGY EFFICIENCY FROM THE KENYA

POWER PERSPECTIVE

AFRICA CARBON EXCHANGE (ACX) ENERGY EFFICIENCY WORKSHOPAPRIL 24-25th 2013

Eng. Margaret Kanini

Senior Engineer, Demand Side Management

Kenya Power

OUTLINE

Introduction

Power System Overview

Energy demand

Energy Efficiency

Power System efficiency

Energy Efficiency Measures

Demand Side Management

Conclusions

2

INTRODUCTION

Kenya Power is a public utility

Company responsible for:

Power purchase

Transmission

Distribution and retail sales of

electricity in Kenya

3

4

(Kenya Power)

5

Kenya Power’s Contribution to the Economy

Increasing population access to electricity from the current

29% to a targeted 40% by 2020.

Planning and implementation of distribution reinforcement

and upgrade projects.

Procurement of adequate power generation capacity from

diverse sources;

and maintaining a minimum reserve margin of 15% (and

preferably 30%).

Promotion of green energy investments.

Improving power supply quality and reliability.

POWER SYSTEM

OVERVIEW 2011/12Customer base 2,038,625

Population electricity access 29%

Total installed Interc. generation capacity 1,691 MW

Effective generation Capacity 1,636 MW

Recorded sustained Peak Power Demand 1,236 MW

Annual Energy Purchased 7,670 GWh

Annual Energy Consumption 6,341 GWh

Totals system losses 1,329 GWh

% Loss of the energy purchased 17.3%

Capacity Shortfalls are often experienced – Blackouts and load shedding

6

Hydro, 3,451 , 46%

Thermal, 2,569 , 34%

Geothermal, 1,498 , 20%

Wind, 15 , 0%

Solar, 0.3 , 0%

Imports, 37 , 0%

GENERATION BY SOURCE

GWh 2011/12

7

Projected Growth in Demand

7,749 7,919

8,578

9,801

11,059

-

2,000

4,000

6,000

8,000

10,000

12,000

2012/13 2013/14 2014/15 2015/16 2016/17

Ene

rgy

De

man

d (

GW

h)

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Meeting future power demand

Build more generation capacity

Purchase electricity from other utilities

(import)

Transmission and distribution

improvements

Energy Efficiency and Demand Side

Management programs

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-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2012/13 2013/14 2014/15 2015/16 2016/17

Ene

rgy

(GW

h)

Projected Generation Mix per year

Hydro Geothermal Thermal (fossil Fuels) Cogeneration (Bagasse) Wind Import

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Energy Efficiency - Definition

The goal to reduce the amount of energy required to

provide products and services

Should not compromise on comfort or quality of

products;

E.g. should not negatively affect;

Lighting levels/ quality of lighting

Production

Comfort – (e.g. HVAC)

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Why Energy Efficiency?

High Energy Prices

Energy efficiency will lower energy bills

Insecurity of Supply

Future energy supplies uncertain due to depletion of

major energy sources; e.g. fuel wood and fossil fuels as

demand rises

Adverse environmental and health impacts

Climate change as a result of GHG emissions due to

energy use

12

Why Energy Efficiency?—(2)

Energy efficiency is a valuable resource

Reduces the need for more energy generation

capacity expansion

Reduces system Losses

Saves customers money

Creates jobs

Reduces pollution and greenhouse gases

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Power System Energy Efficiency

Minimizing Energy Losses on;

Supply side

Generation

Transmission

Distribution

Demand Side (End use)

Residential

Commercial

Industrial

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5,347 5,697

6,169 6,385 6,489 6,692

7,303 7,670

4,379 4,580

5,065 5,322 5,432 5,624

6,123 6,341

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Ene

rgy

(GW

h)

Energy Purchased Vs Sales

Energy Purchased Energy Sold

Energy Efficiency on the supply side

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81.9%

80.4%

82.1%

83.4%

83.7%

84.0%83.8%

82.7%

78.0%

79.0%

80.0%

81.0%

82.0%

83.0%

84.0%

85.0%

2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Dis

trib

uti

on

Eff

icie

ncy

(%

)

Distribution efficiency

Energy Efficiency on the supply side -------(2)

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Losses on the supply side

Power losses have two components;

technical losses and

non-technical losses (Commercial losses).

Electric power transmission and distribution

losses include;

losses in transmission between sources of supply and

points of distribution

distribution to consumers, including pilferage.

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Losses on the supply side -(2)Technical losses occur naturally and are dependent on the system

characteristics.

Electricity Demand (I)

Physical characteristics of conductor (wire) –(R)

Magnetizing currents in equipment

Corona losses due to bad weather – Transmission lines

Power Plant Auxiliary losses – Fans, pumps, blowers

Non technical losses are caused by actions external to the power

system and occur from basically;

Electricity theft,

Inaccuracies in metering equipment

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Energy Efficiency Measures

Energy Efficiency on the system can be addressed

by implementing;-

Supply Side EE measures

Demand Side EE Measures

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Supply Side Energy Efficiency

MeasuresUse of conductor with less resistance, e.g. bigger conductor is able

to pass high currents with less resistance

Reduce the length of MV power lines - build more sub transmission

substations (132/66, 132/33, 66/33, 66/11, etc)

Locate distribution transformers near the load centres

Use transformers with less losses (specify at the procurement stage)

Ensure proper design of transmission lines to minimize corona

losses

Procure & Install low loss equipment

Construct new lines and substations to cater for load growth

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Loss reduction– Supply side options

System reinforcement to cater for growing load through the Energy Sector Recovery Project (ESRP) since 2004/5;

Establishment of more primary substations to reduce the length of distribution lines

Line reconductoring to upgrade thin conductor with thick conductor

Specifications for low loss equipment

Transformer relocation to load centres

Capacitor installations on transmission & distribution lines and substations to improve system power factor

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Loss reduction ------2)

KP committed to reducing losses in transformers

Transformers operate 24 hours a day, seven days a week, 365 days a

year.

Losses of 2 to 4% of the electricity that passes through them.

Already a shift to high efficiency transformers through specifications

Reduction of losses by 70 - 75% on transformers

No. of txs installed per year > 8,200

Average Energy Savings = 270GWh/yr

Estimated emission reduction = 180,000tons of CO2e/ year

Process of CDM registration is ongoing

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Energy Efficient Transformers

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Ordinary Vs Energy Efficient Txs

Ordinary Tx Energy Efficient Tx

Non Technical Losses

Prepaid Metering

Automatic Meter reading (AMR)

Intensified inspections to disconnect unauthorized connections

Ring fencing - for identification of areas of losses

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Energy Losses at the end use

Wastage of primary energy input in industries range from 10%

- 30% ( GEF-KAM Project – 2001)

There are numerous energy efficiency opportunities

surrounding us;

No Cost,

Low Cost and

High Cost

Improvement of efficiency of energy use including heating,

lighting, AC, office equipment, motors and industrial

processes, etc is necessary

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Energy Losses at the end use …..2)

Improvements involve use of new more efficient

technologies as well as better operating practices.

Example, improved operation of heating,

ventilation and AC in commercial buildings can

cut electric bills by 10-15% with no capital

investment; - cleaning air filters, lubrication and

proper function of controls.

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End Use EE Challenges

Inadequate awareness on benefits of EE

Consumer apathy – consumers not embracing

energy efficiency due to negative attitude

Inadequate resources - financial & technical

Lack of standardization of appliances and equipment

Inadequate incentives for EE

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Kenya Power, besides providing

electricity offers services that assists

customer to manage their electricity bills

through DSM.

DSM involves influencing the amount

and timing of electricity usage by customers.

Demand Side Management (DSM) & Energy Efficiency

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Demand Side Management

The amount of electricity is

reduced by improving the technical

and operational efficiency with

which customers use electricity.

Timing of electricity is influenced

by direct load control programs -

Interruptible tariff in place for water

heating; to manage demand at critical

times.

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Why Should Kenya Power run

DSM Programs?

How can a company

encourage its

customers to use

less of its product?

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Why Should Kenya Power run

DSM Programs? ------2)

Electricity is an essential

commodity,

Is not adequate

Expensive to produce

and distribute.

Regulated.

Why Should Kenya Power run

DSM Programs? ----3)

KP DSM strategy is to: Reduce wasteful electricity consumption,Allow for more load growth with existing capacity Optimise customer bills and reduce debt and

associated disconnections Improve quality of supply & customer satisfaction Comply with the Energy Policy on energy efficiency

DSM also reduces the customer load (I) to reduce losses on the supply side

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0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

LO

AD

, M

W

TIME OF DAY

DAILY LOAD CURVES

National Gen.Demand

NairobiRegion

Coast Region

West Region

Mt. KenyaRegion

Figure Load Curves - 10th May 2011; Source NCC, KPLC

Load Profile

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Kenya Power & DSM

DSM provides resources that cost effectively substitute for power plants

Direct load control programs and interruptible rates provides same type of services that a combustion turbine does, but at a lower cost.

Energy Efficiency programs are often low cost alternatives to the construction and operation of base load power plants.

Thus DSM is a resource analogous to power plants Often referred to as a virtual power plant

Some utilities consider it in planning for future demand alongside other considerations for meeting customer needs (IRP concept).

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DSM Activities In Kenya Power

Efficient Lighting program roll outs in residential SectorPromotion of energy Efficiency initiatives in the countryDissemination of energy efficiency and conservation information to customersProvision of energy audits and energy advisory services to customersPlans for Smart Metering to assist customers monitor and manager energy usage.

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Efficient lighting (CFL) roll out

Pilot financed by the Government in 2009/10,

implemented by Kenya Power.

Involved distribution of 1.25Million CFLs to

residential customers countrywide

Cost of the Project KES 500 Million

Impact:

Peak Demand Reduction 48 MW

Energy savings 61GWh/Yr

Energy Cost savings KSh72M/Yr

Reduction in fuel Costs KSh872M/Yr

Avoided gen. expansion KSh 5 bn

GHG emission abated 55,000tons CO2/

year).

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Compare this to building a 48 MW power plant!!

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Launch of the Pilot CFL Project in 2010

Efficient lighting (CFL) roll outs

---2)Plans to roll out a further 3.3 Million CFLs to households in 2012/2013.

Financing – GoK/ AFD and CDM

Program to benefit about 1 million low income households across the country

Program has been registered with the CDM

CDM revenues to be used in enhancing customer growth (Stima loan revolving fund).

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Planned Project Impact

Impact:

Peak Demand Reduction 130MW

Energy savings 180GWh/ year

Energy Cost savings KSh 197million/ yr

Reduction in fuel Costs KSh 2.4 Billion

Avoided gen. expansion KSh 15 billion

GHG emission abated 120,000tons CO2/ year)

Efficient Lighting (CFL) roll outs ---

3)

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Support of Energy Efficiency Initiatives

Kenya Power supports various initiatives in energy efficiency;

Prime sponsor of the Energy Management Awards

Supports KAM in the technical evaluation of the EE projects participating in the EMA awards

Participation in the ongoing S&L Program in development of MEPS & labels for selected appliances and equipment.

40

Energy Efficiency Campaigns

EE awareness campaigns on energy efficiency through;

Road Shows

Fliers/ posters/ booklets

Barazas

Trade fairs (shows)

Radio/ Television

Bill boards

41

Energy Audits and Energy Advisory Services

The Company offers energy audits to all categories of customers

Consideration:

Consistently high bills that the customer is not able to comfortably pay

Request from customers for advise of energy saving

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Smart Metering to support EE

To be rolled out in the near future in the high

consumption residential segement automatic meter reading

remote disconnection / reconnection

Will enable the customer to monitor their usage,

hence management of energy

load control through automatic switching off

selected apliances, e.g. Water heaters, AC, washing

machines, etc.

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ConclusionsAvailable Capacity inadequate to meet demand

Energy efficiency measures are a least cost option to meet growing demand

Energy Efficiency is a resource equivalent to a power plant.

Both Supply side and Demand Side energy efficiency measures necessary.

Kenya Power is continuously in improving distribution efficiency to meet demand & improve quality of supply

Demand side management measures, that include CFL roll outs, energy audits, awareness campaigns are ongoing.

Smart metering solution in the near future will address challenges of energy management in the residential sector.

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END

THANK YOU