A Presentation by: Laurencia K. Njagi, Company Secretary Kenya Power & Lighting Company Ltd To the Law, Justice and Development Week 2012 PUBLIC PRIVATE PARTNERSHIPS IN THE POWER PUBLIC PRIVATE PARTNERSHIPS IN THE POWER SECTOR IN KENYA SECTOR IN KENYA 1
34
Embed
A Presentation by: Laurencia K. Njagi, Company Secretary Kenya Power & Lighting Company Ltd To the Law, Justice and Development Week 2012 PUBLIC PRIVATE.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
A Presentation by: Laurencia K. Njagi, Company SecretaryKenya Power & Lighting Company Ltd
To the Law, Justice and Development Week 2012
PUBLIC PRIVATE PARTNERSHIPS IN THE POWER PUBLIC PRIVATE PARTNERSHIPS IN THE POWER SECTOR IN KENYA SECTOR IN KENYA
PPP Projects in Energy SectorPPP Projects in Energy Sector
No.
Plant Capacity (MW)
Type FCOD/Status
Procurement Method
1. IberAfrica 106 Thermal 1997 Open competition on first 56MW, then extension in 2007
2. Tsavo Kipevu II
74 Thermal 2001 Open Competition
3. OrPower 4 100 Geothermal 2000 Open Competition for phase 1 later expansion
88
PPP Projects in Energy SectorPPP Projects in Energy Sector
No Plant Contracted
Capacity (MW)
Technology
Full Commercial Operation
Date/Status
Procurement Method
4 Rabai 90 Thermal 2009 Open Competition
5 Mumias 25 Bagasse 2008 Co-Generation
6 Thika 87 Thermal 2013 Open Competition
7 Triumph 83 Thermal 2013 Open Competition
99
PPP Projects in Energy SectorPPP Projects in Energy Sector
No.
Plant Contracted
Capacity (MW)
Technology
Full Commercial Operation
Date/Status
Procurement Method
8 Gulf Athi River 80 Thermal 2014 Open Competition
9 Aerolus Kinangop
60 Wind 2014 Feed In Tariffs
10 AGIL Longonot
140 Geothermal
2014 Unsolicited Proposal
1010
PPP Projects in Energy SectorPPP Projects in Energy Sector
Other 4 mini hydro projects under feed in tariff.Other 4 mini hydro projects under feed in tariff.
1111
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
(i) Least Cost Power Development Plan(i) Least Cost Power Development Plan
Kenya has a 20 year Least Cost Power Development Kenya has a 20 year Least Cost Power Development
Plan for transmission and generation systems that is Plan for transmission and generation systems that is
updated annually.updated annually.
The Government and KenGen agree on the projects The Government and KenGen agree on the projects
to be developed by KenGen based on its financial to be developed by KenGen based on its financial
and technical capacity. and technical capacity.
1212
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:(i) Least Cost Power Development Plan(i) Least Cost Power Development Plan
KPLC procures private investors to develop plants KPLC procures private investors to develop plants
not being developed by KenGen.not being developed by KenGen.
Most of the geothermal and hydro projects are Most of the geothermal and hydro projects are
implemented by KenGen due to low IPP bidders implemented by KenGen due to low IPP bidders
interest.interest.
1313
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
(i) Least Cost Power Development Plan(i) Least Cost Power Development Plan
In order to remove the risk of geothermal steam, a In order to remove the risk of geothermal steam, a
fully state-owned geothermal company has been fully state-owned geothermal company has been
established to carry out geothermal exploration and established to carry out geothermal exploration and
development and to sell steam to private development and to sell steam to private
developers and KenGen for conversion to electricitydevelopers and KenGen for conversion to electricity..
1414
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
(ii) Bridging Capacity Gap(ii) Bridging Capacity Gap
In the event of delays in the implementation of a In the event of delays in the implementation of a
committed project in the LCPDP, a decision is made committed project in the LCPDP, a decision is made
to procure development of a power plant of a to procure development of a power plant of a
technology which can be implemented in a short technology which can be implemented in a short
period by private investors to bridge the capacity period by private investors to bridge the capacity
gap.gap.1515
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
(ii) Bridging Capacity Gap(ii) Bridging Capacity Gap
This has been the case for a number of thermal This has been the case for a number of thermal
projects. projects.
1616
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
((iii) Feed In Tariffs For Renewable Energyiii) Feed In Tariffs For Renewable Energy
Kenya has a Feed In Tariff with set energy charge Kenya has a Feed In Tariff with set energy charge
rates for various renewable energy sources to rates for various renewable energy sources to
encourage their development. encourage their development.
Proposals from interested developers are analyzed Proposals from interested developers are analyzed
and approved if found adequate by a Standing and approved if found adequate by a Standing
Committee under the Ministry of Energy.Committee under the Ministry of Energy.1717
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
((iii) Feed In Tariffs For Renewable Energyiii) Feed In Tariffs For Renewable Energy
PPA negotiations are carried out between the PPA negotiations are carried out between the
private investors and KPLC. private investors and KPLC.
1818
CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:CRITERIA FOR PROJECT DEVELOPMENT ON A PPP BASIS:
Some projects have been awarded for development Some projects have been awarded for development
as PPPs following unsolicited proposals.as PPPs following unsolicited proposals. Mostly in technologies like geothermal and wind which are Mostly in technologies like geothermal and wind which are
difficult to subject to competitive bidding without investing difficult to subject to competitive bidding without investing
first to ascertain the natural resource potential.first to ascertain the natural resource potential.
1919
LOCATION OF THE PLANTLOCATION OF THE PLANT
A decision on the siting of the project is made based A decision on the siting of the project is made based
on the location of the natural resource (hydro, on the location of the natural resource (hydro,
geothermal and wind), the proximity to the load geothermal and wind), the proximity to the load
centre and transmission and distribution connection centre and transmission and distribution connection
facilities.facilities.
2020
PROCUREMENT PROCESS AND APPROVALPROCUREMENT PROCESS AND APPROVAL
Kenya has a Public Procurement and Disposal Act, Kenya has a Public Procurement and Disposal Act,
2006, that governs procurement by government and 2006, that governs procurement by government and
state corporations.state corporations.
Competitive bidding is the normal method of Competitive bidding is the normal method of
procurement.procurement.
The Act provides for a review mechanism of The Act provides for a review mechanism of
appeals from bidders who are dissatisfied with the appeals from bidders who are dissatisfied with the