low carbon logic: how southern businesses are saving money by … · 2019. 11. 11. · oil, 16%...
TRANSCRIPT
Low Carbon Logic: How southern businesses
are saving money by going green.
Challenges & Solutions in Kenya
Murefu Barasa
Camco
17th July 2013
Energy
3
Outline
4
1. Overview of the energy sector in Kenya
2. Energy and carbon markets in Kenya
3. Opportunities/risks in a carbon constrained future
5
Overview of the energy sector in Kenya
Geothermal, Wind & Solar,
1%
Oil, 16%
Coal/Peat, 1%
Biomass & wastes, 77%
Hydro Power, 6%
Translates to between 35 – 40 million tonnes per year (MoE, 2002)
Translates to between 3.9 million tonnes per year to increase to 10
million tonnes by 2030 (NOCK, 2011)
Sources of Energy
6
Overview of the energy sector in Kenya Biomass Dominance (30 year trend)
Source: World Bank Online Database
7
Overview of the energy sector in Kenya
0
250
500
750
1000
1250
1500
1750
2000
1971 1976 1981 1986 1991 1996 2001 2006
ENER
GY
USE
(kg
of
oil
eq
. p
er
cap
ita)
YEAR
World
Sub-Saharan Africa
Kenya
Energy Use (Kg of Oil Equivalent)
Source: IEA Online Database
8
Overview of the energy sector in Kenya Current Electricity Sources
9
Overview of the energy sector in Kenya
Developer Project Type Capacity (MW) Estimated
Commissioning Date
KenGen Geothermal Well Head Units Geothermal 70 Jun-11 Tana Development Hydro 20 Oct-10 Kipevu Thermal Plant Diesel 120 Jan-11
Eburu 2.5 MW Geothermal 2.5 Dec-11 Sangoro Hydro 21 Oct-11 Ngong 3 Wind Wind 15 Jul-12 Kindaruma 3rd Unit Hydro 25 Oct-12
Olkaria IV Geothermal 140 Jan-13
Olkaria 1 Units IV and V Geothermal 140 Jan-13
KenGen/ IPP Mombasa Coal Coal 300-600 Jul-13
Athi River MSD Plant (Triumph) Diesel 81 Mar-12 IPP Athi River MSD Plant (Gulf) Diesel 84 Mar-12
Thika MSD Plant (Melec) Diesel 87 Mar-12 ARM Coal (Mombasa) Coal 20 Jul-12 Lake Turkana Wind 300 Jul-13 Osiwo Wind Wind 50 Jul-13
Aeolus - Kinangop & Ngong Wind 160 Jul-13
OrPower4 (Olkaria III) Geothermal 52 Jan-14 Small Hydros Hydro 25 2011-2015
IMPORT Ethiopia Hydro 200 Jul-14 Total 1,913-2,213
Pipeline Projects
10
Overview of the energy sector in Kenya Electricity Prices
Source: KPLC Statistics 2011
11
Energy and Carbon Markets List of CDM Projects Registered
PROJECT TITLE (AS AT16/JULY/2013) DATE SPONSOR/DEVELOPER tCO2/YEAR
1. Bagasse Cogeneration 03/09/2008 Mumias Sugar Company 129,591
2. Olkaria III Phase 2 Geothermal Expansion 04/03/2010 Ormat 177,600
3. Olkaria II Geothermal Expansion Project 04/12/2010 Kengen 149,632
4. Lake Turkana Wind 28/02/2011 Lake Turkana Wind
Consortium
736,615
5. Aberdare Range-Mt Kenya Reforestation:
Kipipiri
11/07/2011 Green Belt Movement
8,542
6. Aberdare Range-Mt Kenya Reforestation:
Kirimara
05/10/2011 Green Belt Movement
8,809
7. Redevelopment of Tana Hydro Power
Station
11/10/2011 Kengen
25,680
8. Karan Biofuel CDM project – Bioresidues
briquettes supply for industrial steam
production
25/09/12 Karan Biofuel Limited 43, 699
9. Ol Karia IV Geothemal 28/12/2013 Kengen 651,349
10. Ol Karia I Unit 4&5 28/12/2013 Kengen 635,049
12
Energy and Carbon Markets Policy and Market Changes
• EU ETS Energy and Climate Directive of 2009 states that no
CERS from non-LDC countries registered after 31st Dec 2012
will be accepted
• Uncertainty in international legal frameworks, Euro crisis and
an oversupply of carbon assets led to the decline in prices
13
Energy and Carbon Markets Policy and Market Changes
Source: World Bank 2013
14
Opportunities/Risks in the Energy Sector
1. Past dependency on biomass energy sources (-ve)
2. Dependence on climate sensitive energy sources (-ve)
3. Geothermal development (+ ve)
4. Greater participation of the private sector (+ ve)
5. Regional networks and pooling initiatives (+ ve)
6. Prospects of fossil fuels: Oil in Turkana, gas off the coast and coal in Kitui (=)
Summary of Risks & Opportunities
15
Opportunities/Risks in the Energy Sector
1. Updating and use statistics for planning and monitoring
2. Mainstream bioenergy sources (Awareness, sustainability, R&D)
3. Regional power pool
4. Diversify the energy generation base
5. Encouraging private sector participation: Net metering, energy banking, FIT policies, mini/micro-grid solutions
Proposed Sectoral Interventions
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