RENEWABLE ENERGY REGULATION IN KENYA-SPAIN MULTILATERAL PARTNERSHIP MEETING

RENEWABLE ENERGY REGULATION IN KENYA-SPAIN MULTILATERAL PARTNERSHIP MEETING HELD AT CROWNE PLAZA Presented by Caroline Kimathi Asst Manager, Licensing and Compliance ENERGY REGULATORY COMMISSION

STRUCTURE OF PRESENTATION v. Energy & Power Institutional Structure v. Mandate of ERC v. Energy Management Regulations v. Solar Water Heating Regulations v. Solar PV Regulations v. Other Renewable Energy Regulations

Energy and Power Institutional Structure Ministry of Energy Regulatory Commission Electricity Sub-sector Petroleum Sub-sector Kenya Electricity Generating Company Kenya petroleum refineries Kenya Power and Lighting Company Kenya pipeline company Rural Electrification Authority National Oil Corporation Kenya Electricity Transmission Company Oil marketing companies Geothermal Development Company Independent Power Producers

MANDATE OF ERC n ERC is a single sector regulatory agency with responsibility for economic and technical regulation of electric power, renewable energy and downstream petroleum sub-sectors including: n Tariff setting and review n Licensing n Enforcement of Requirements n Dispute settlement n Approval of power purchase and network service contracts n Preparing indicative energy plans

RENEWABLE ENERGY REGULATIONS n The Energy (Energy Management) Regulations 2012 n The Energy (Solar Water Heating ) Regulations 2012 n n n The Energy (Solar Photovoltaic Systems) Regulations 2012 The Draft Energy (Improved Biomass Cookstoves) Regulations 2012 The Draft Energy (Appliances Energy Performance and Labelling) Regulations 2013

ENERGY MANAGEMENT REGULATIONS n n n The objective of the gazetted Energy Management Regulations, 2012 is to facilitate efficient use of energy through better understanding of supply and use, management and the implementation of energy efficiency and conservation measures. These regulations target Industrial, Commercial and Institutional consumers of Energy, which offer the highest potential for energy efficiency and conservation. These regulations have been developed to facilitate the implementation of Energy Efficiency and Conservation as outlined in Sections 105 and 106 of the Energy Act, 2006.

ENERGY MANAGEMENT REGULATIONS n n The regulations govern operations and licensing of energy management and conservation including licensing of Energy Auditors and Audit firms. Provide an opportunity for financiers to finance implementation of the Energy Management Plans (EMP) developed through the energy audits. Achieve 50% of the recommended measures within three years. GEF-KAM project supported by UNDP found that 35% of energy goes to waste through inefficient use.

ENERGY MANAGEMENT REGULATIONS The Regulations addresses the following key challenges to energy efficiency and conservation: n Low uptake of energy efficiency and conservation n Insufficient regulatory framework to support energy efficiency processes; n Enhanced national energy security through diversification of energy supply mix and reduction in the over reliance on petroleum imports. n Use of Energy Efficient equipment in our commercial buildings, factories, and institutions n Improve competitiveness and help to mitigate climate change by lowering GHG emissions. n Ensure qualified people are involved in the energy management and audit processes.

SOLAR WATER HEATING REGULATIONS Objective & Background n n Overall objective is to promote uptake and guide the incorporation of low temperature solar water heating (SWH) systems in industrial, commercial and residential buildings. Uptake level of solar water heating systems in Kenya extremely low compared to: n n enormous potential provided by the abundant availability of the solar energy resource demand for low temperature water for both domestic and commercial applications

SOLAR WATER HEATING REGULATIONS Expected Benefits n n n Development and utilization of indigenous energy resources Enhanced national energy security through diversification of energy supply mix and reduction in the over reliance on petroleum imports. Reduced demand for expensive fuel fired peaking power plants resulting from grid electricity peak demand attributed to water heating. Increased environmental protection through reduction of green house gases as a result of reduction in the use of petroleum fuels and biomass for water heating Increased employment, capacity building and income generation resulting from the expanded solar water heating industry.

SOLAR PV REGULATIONS Objective: n n n To streamline manufacture, design, installation, maintenance and use of solar PV systems or components to ensure that end users obtain value for money, improve distributed electricity service delivery and facilitate sustainability of the PV market in Kenya. Regulations provide a licensing framework for solar PV value chain and facilitate proper use of Solar PV systems while avoiding supply of sub-standard components and installations. Regulations to provide a monitoring system.

SOLAR PV REGULATIONS Background: n n The solar market in Kenya is among the largest and most dynamic among developing countries with the highest per capita and a constant growth of over 10% per year over the past decade. Most activity related to sale of household Solar PV Systems accounting for 75% of sales. Market reviews and field reports have returned persistent complaints underperformance or complete failure. The Regulations are in line with the provisions of the Energy Act, 2006 section 5 (a) Clause (iii)

SOLAR PV REGULATIONS Expected Benefits: n n Promote fair business practices in the solar PV industry; Protect end-users from sub-standard solar PV and auxiliary products (i. e. solar inverters and batteries) in the Kenyan market; Facilitate collection and maintenance of solar PV industry data and; Support enforcement of the Solar PV Kenya Standard (KS 1673 -1: 2004)

OTHER RE REGULATIONS n Improved Cookstoves Regulations (Draft) n Basis: Kenya Standards KS 1814 -1: 2005 Biomass stoves - Performance requirements and test methods n Mandatory for Institutions and businesses to use improved cookstoves n Awaiting gazettement

OTHER RE REGULATIONS Appliances Energy Performance and Labelling (Draft) Benefits: § Encouraging the use of equipment with established minimum energy performance standards (MEPS) hence promoting Energy Efficiency and conservation in the Country. § Lowering the peak load demand of electricity on the grid hence facilitating efficient and stable supply of electricity. § Increased electrification and improved energy security in the country from the energy saved from the use of energy efficient electrical appliances.

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