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R. Cons. Eng. Simon Mwangi

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Presentation on theme: "R. Cons. Eng. Simon Mwangi"— Presentation transcript:

1 R. Cons. Eng. Simon Mwangi

2 CONTENTS INTRODUCTION THE ELECTRIC REASON WHY VISION 2030 MAY BE ACHIEVED 75 YEARS LATE IN 2105 DEVOLVING THE ELECTRICITY INDUSTRY IN KENYA THE NATIONAL GRID, SMART GRID, INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) AND GIS ROLE OF NATIONAL STUDY CENTRE, GIS AND SMART GRID CONCLUSION

3 SCIENCE AND MANAGEMENT FIELDS 1. STRATEGIC MANAGEMENT Vision 2030 is a global strategic management Potter, 1990 argues that national prosperity is created, not inherited, Factors that support national competitiveness Factors of production Demand conditions in the home market, Related and supporting industries Firm strategy, structure and rivalry in the national industries. In Kenya, the quality supply of electricity affects all the diamond factors of national competitiveness. Yabs (2010) defines strategic management as the art of mobilizing resources and the science of formulating, implementing, and evaluating decisions that enable an organization to realize its objectives

4 SCIENCE AND MANAGEMENT FIELDS 2. GLOBAL STRATEGIC MANAGEMENT Part of the Vision 2030 project aims at making it easy for foreign domestic investment by multinationals in Kenya, as well as encouraging Kenya's small and medium enterprises to globalize (GOK, 2007). Oloko (2013): foreign products in Kenyan market, get higher acceptance even when their quality may not be as good challenges facing the domestic SMEs poor infrastructure including access roads, power, water, sewage and telecommunications.

5 SCIENCE AND MANAGEMENT FIELDS 3. CULTURE Oloko and Ogutu (2012) : Culture is an important determinant of organisational performance in host countries. Power distance, individualism, masculinity, uncertainty avoidance, long term orientation and indulgence/ restraint. What is Kenya's culture, and can MNCs and SMEs expect Kenya to keep on track with Vision 2030 and assure a globally competitive environment in the long term? What is Kenya's track record with social projects e.g. water for all by 2000 that did not produce the anticipated results (Mumma, 2005), It is good practice for scholars to check whether existing government plans for Vision 2030 are on course in order

6 SCIENCE AND MANAGEMENT FIELDS 3. CULTURE contd Vandalism is rampant, Companies to invest in various strategies to combat vandalism community policing spot-welding, reinforcement and relocation of transformers, Introducing extra costs to the service (Kenya Power, 2012)

7 SCIENCE AND MANAGEMENT FIELDS 4. PROJECT MANAGEMENT Project selection models sacred cow Operating Necessity Competitive Necessity Managers dealing with the vision 2030 project activities need to understand genesis of in order to perform well and provide effective adjustments as time progressed towards the year Rural Electrification Authority (REA) interpreted Vision 2030 to mean universal connection to electricity for all Kenyan households by 2020 (REA, 2010)

8 SCIENCE AND MANAGEMENT FIELDS 5. MARKETING Massive exodus of manufacturing companies to countries that have cheaper energy costs Ethiopia, USc 3/kw Egypt, USc5/kw, Tanzania USc9/kw Uganda, USc 18.6 Kenya Usc 18.7/kw, (proposed USc 28/kw)

9 SCIENCE AND MANAGEMENT FIELDS 6. ECONOMICS losses of jobs increase in poverty levels, slow economic growth negatively impact goals of Vision 2030 of Kenya being industrialized country.

10 SCIENCE AND MANAGEMENT FIELDS 6. ECONOMICS… Universal Access Kenya Power says it will increase electricity access of Kenyans to 50% by 2013 (Kenya Power 2012). No such timelines in Vision 2030 (GOK 2007) No timelines in Kenya Electricity Transmission Company (KETRACO) Website quoting the Ministry of Energy (KETRACO, 2013) REA gives a universal connectivity 2020 timeline (REA, 2010). Evidently there is no coordination between the bodies

11 SCIENCE AND MANAGEMENT FIELDS 7. ENGINEERING (Karhammar R, SanghvEric A, Arthur M, TullocIan J, Bergman S and Mathur S, 2006), In a study of several African countries with close similarities to Kenya “ Electricity supply networks are based on concepts imported during colonial times little adaptation to local conditions e.g. technical standards allow that for snow and ice leading to expensive installation and energy costs”

12 SCIENCE AND MANAGEMENT FIELDS 8. VALUE CHAIN ANALYSIS According to Helin and Meijer (2006), a value chain can be defined as the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to final customers, and final disposal after use We should focus on those aspects of participation which are adding value in the domestic context (Kean 2008)

13 SCIENCE AND MANAGEMENT FIELDS-VALUE 8. CHAIN ANALYSIS

14 SCIENCE AND MANAGEMENT FIELDS 9. LEGAL-Proposed Changes Existence of many electricity generating companies one transmission company many distributing companies many retailers, all of who can make business selling to the final consumer Power network as an open highway Wheeling charge to network owners for transporting supply through them (GOK 2012) Improve competition and service delivery

15 SCIENCE AND MANAGEMENT FIELDS 10. DEVOLUTION Delay in settling devolution policy and guidelines may affect companies through causing uncertainty Maina, (2013) : Tariff increases 2012/13 should wait for devolution Devolution is a central topic in the constitution and is one of the national values which are stated as: (a) Patriotism, national unity, sharing and devolution of power, the rule of law, democracy and participation of the people; (b) Human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination and protection of the marginalised; (c) Good governance, integrity, transparency and accountability; and (d) Sustainable development.

16 SCIENCE AND MANAGEMENT FIELDS 10. DEVOLUTION The Constitution also recognizes that Counties are starting off at differing levels of development and allows for asynchronous devolution. Transition Authority invited Counties to initiate processes that will ensure that devolution Electricity Sector is Devolution of County planning and development including Statistics, land survey and mapping, boundaries and fencing, housing and electricity and gas reticulation and energy regulation. It is a functions ready for transfer by 1st July 2013

17 SCIENCE AND MANAGEMENT FIELDS NATIONAL GRID, SMART GRID, INFORMATION AND COMMUNICATION TECHNOLOGY (ICTs) AND GIS The Energy Regulatory Commission (ERC), (2008) “grid” means the network of transmission systems, distribution systems and connection points for the movement and supply of electrical energy from electric power producers’ generators to consumers (ERC, 2008). Most operations of the Kenyan grid have been manual (construction, fault finding, fault repair, meter reading, disconnection and reconnections) With the advent of Information and Communication Technology (ICT), it is possible to computerize and automate some of these activities The Constitution also recognizes that Counties are starting off at differing levels of development and allows for asynchronous devolution.

18 SCIENCE AND MANAGEMENT FIELDS NATIONAL GRID, SMART GRID, INFORMATION AND COMMUNICATION TECHNOLOGY (ICTs) AND GIS (Wikipedia, 2013) GIS or geospatial information system is a system that captures, stores, analyses, manages and presents data with reference to geographic location data. The Office of Electricity Delivery & Energy Reliability of the US Energy Department (2013) “Smart grid” technology people are using to bring utility electricity delivery systems into the 21st century, using computer-based remote control and automation. Thus, Smart Grid combined with GIS will give a “live” geographical model that gives data and operations automation ability and would give a good basis for decision making and devolution of services.

19 Length of power lines 220KV ,355 KM 132 KV ,387 KM 66KV KM 33KV ,000 KM 11KV ,000 KM 0.24, KV ,000 KM Dist Txs ,500 No. EXISTING POWER SYSTEM STATISTICS

20 Figure 3: A Smart Grid Enabled Devolved Model Based on the Proposed Energy Policy

21 Approach per County/Constituency Githunguri

22 Approach per County/Constituency Githunguri

23 Connectivity Master Plan (Githunguri) The Total number of Possible Customers in branch is 23,323 at the moment. StatusNo.% Customers Connected (Actual service lines)15, Customers Not Connected but are ≤ 600m 6, Customers Not Connected and are > 600m 1, TOTAL23,323100

24 Current Connectivity Status:

25 DATA TO MAKE DECISION ON GENERATION TRANSMISSION DISTRIBUTION CUSTOMER REGULATION

26 ROLE OF NATIONAL STUDY CENTRE, GIS AND SMART GRID/GIS GIS is especially useful in Kenya because of the structure of the industry which consisted of more than a dozen bodies even before factoring in the differing needs of the 47 new Counties, since they interact with one grid and their operations need to be seamless. GIS and Smart Grid would also enable e-Government and e-Commerce, giving consumers freedom and flexibility. In the electricity sector, the electricity grid is interconnected and operates as one unit hence care should be taken to devolve services without adversely affecting the quality of supply.

27 ROLE OF NATIONAL STUDY CENTRE, GIS AND GIS/SMART GRID- Players and Activities Ministry of Energy (MoE), The Energy Regulatory Commission (ERC), Kenya Electricity Generating Company (KenGen), Independent Power Producers (IPPs), The Kenya Electricity Transmission Company (KETRACO), Rural Electrification Authority (REA), Kenya Power (KP ), The Geothermal Development Company (GDC), New Connections by contracted players, Many Donors and partners, Post paid, prepaid meters and fixed rate accounts in the slums and Counties

28 ROLE OF NATIONAL STUDY CENTRE, GIS AND SMART GRID- Solving Challenges in Energy Policy GIS and Smart Grid usage would enable address the challenges identified in the energy policy as follows: 1. High end-user electricity tariffs- GIS allows for proper planning and more focused asset management and monitoring of teams deployment, thus lowering operational costs and reducing pressure for tariff increases 2. High electricity connection charges. Despite efforts to subsidize the cost of connection to between Kshs.17,000/- to KShs.35,000/-, the amount was beyond the reach of majority of rural consumers, thus the proposed cost in the region of 70,000 is not sustainable. GIS would identify the total quantities required, enable long term planning so that investors can be encouraged to produce locally, have economies of scale, and create employment 3.Vandalism of electric power infrastructure- GIS would be invaluable in deciding the location of transformers and equipment, studying vandalism trends and also enable asset tracking. In providing better access to electricity, it is possible to use community policing to reduce vandalism

29 ROLE OF NATIONAL STUDY CENTRE, GIS AND SMART GRID- Solving Challenges in Energy Policy 4.Lengthy process of way-leaves acquisition would be shortened by proper design maps and having shared GIS information of land ownership with the Lands office 5.Encroachment of way-leaves trace would be reduced since the GIS maps would mark out the wayleave traces and reduce chances of fraudulent sale of lands under the power lines 6.Weak distribution network characterized by limited redundancy and aging installations leading to frequent and prolonged supply interruptions- GIS would obviate the areas that need attention and prioritise reinforcement projects on a well defined basis. Manual methods relying on experiential expertise do not retain institutional memory when people move on

30 ROLE OF NATIONAL STUDY CENTRE, GIS AND SMART GRID- Solving Challenges in Energy Policy 7. Overhead lines prone to frequent interruptions due to corrosion and climatic changes- GIS would enable mapping out of geographical zones that require different kinds of lines such as cities, forests, airstrips 8. In particular, GIS and Smart Grid would address computerized analysis of system losses, identify illegal power line connections and theft of electricity. This would in turn enable corroboration with Counties and local authorities, so that when physical plans are made, they provide an infrastructure corridor for electricity reticulation. It is even possible to use the local authority agents to reduce rampant power theft through community policing 9.In the open access model, it is possible to use counties and local authorities as power retailers where they use the same resources for electricity and water distribution and meter reading to save on costs and reduce the pressure for high arbitrary levies charged by the Local Authorities on power infrastructures. Hence GIS and Smart Grid would provide a proper basis for generating sustainable business data.

31 CONCLUSION Devolved systems of government in order to bring services closer to the people and achieve economic growth. Devolution, if not handled properly, will not deliver full benefits to citizens. It is important for the culture of planning, including data collection, study and analysis for decision making to take root in order to make proper use of limited resources available. In the electricity sector, the electricity grid is interconnected and operates as one unit hence care should be taken to devolve services without adversely affecting the quality of supply.

32 CONCLUSION Electricity is also a key driver of economic development, and therefore the unit costs must be brought down both for new connections and for the unit consumptions. It is also necessary to monitor consumption and operation trends at national level for planning and policy purposes, Hence, while devolving services and giving freedom to counties, a National Electricity Data and Study Centre should keep tabs on the National picture It is also neccessary to monitor consumption and operation trends local and business level by utilities and local governments for business and taxation.

33 CONCLUSION In a rapidly changing this environment, online data is necessary for the correct, convenient and safe operation of the electricity grid. The GIS and Smart Grid concept removes the technical complexity from the sector and allows for easy devolution, in a way that electricity will support economic growth. In its absence the quality of electricity supply and services are likely to be poor and will hinder devolution and the achievement of Vision 2030

34 References Aggreko (2013). A 100 MW's of Temporary Power for Kenya. Online homepage article Accessed on Choudhury, S. (1998). Project Management. Tata McGraw-Hill Publishing Company, New Delhi Dolezilek D. and Schweitzer S. (2009). Practical Applications of Smart Grid Technologies. Schweitzer Engineering Laboratories, Inc. ERC (2008). Kenya Electricity Grid Code. Available Online at EPZ (2003). Annual Report 2003 available online at Free Online Dictionary (2013). Available at Accessed on Gittinger P. (1982). Economic Analysis of Agricultural Projects. John Hopkins University Press. London GOK (2006). Kenya. Integrated Assessment of the Energy Policy. Ministry of Planning and National Development. Nairobi GOK (2007). Vision 2030, The Popular Version. Available online at ab&q=vision%202030%20popular%20version%20download&oq=&gs_l=&pbx=1&bav=on.2,or.r_qf.&bv m=bv ,d.cGE&fp=87b4ed8d77f07c22&biw=870&bih=390&pf=p&pdl=300 GOK (2010). The Constitution of Kenya. Government Printers Nairobi

35 References/2 GOK (2012)National Policy Energy Draft (2012) GOK (2013). Vision 2030 Website Grossman G. and Rosi-Hansberg (2006). The Rise of Offshoring: It’s Not Wine and Cloth Anymore, available at HTTP//www.kansascityfed.org/PUBLICAT/SYMPOS/2006/PDF/Grossman-Rossi- Hansberg.paper.0728.pdf Helin J. and Meijer M (2006). Guidelines for Value Chain Analysis. Online Article available at Hofstede G. (2011): Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1). Karhammar R, SanghvEric A, Arthur M, TullocIan J, Bergman S and Mathur S (2006). Sub-Saharan Africa: Introducing Low-cost Methods in Electricity Distribution Networks. World Bank Group, Washington D C Kean, J. (2008). A New Approach to GVC Analysis. Overseas Development Institute, London Kenya National Bureau of Statistics (KNBS), 1999 : Kenya Census Report Kenya Power (2012) 5 Year Strategic Plan 2011/12 to 2015/16 Kenya Power (2012-2)Annual Accounts 2011/12

36 References/3 KETRACO (2013). Website Homepage available online at accessed on Kenya Institute for Public Policy Research and Analysis KIPPRA (2010). A Comprehensive Study and Analysis on Energy Consumption Patterns in Kenya 2010 Kobia M. and Mohammed N. (2006). The Kenyan Experience with Performance Contracting Kenya Institute of Administration. Nairobi. Kosura, W. (2000). Project Identification and Selection. UNCRD Training Manual Pg. 32 Maina B. (2013). Why Kenya's Competitiveness is Waning. Online Article available at Maina B (2013-2). Increased Power Tariffs Will be a Death Knell for Industry. Online Article available at for-industry Meehan, B. (2007). Empowering Electric and Gas Utilities with GIS. ESRI Press, California Ministry Of Information and Communications (MOIC) (2006). National Information and Communications Technology (ICT) Policy. Mumma, A. (2005). Kenya s New Water Law: An analysis of the implications for the Rural Poor Vershinina N, Daft R, and Kendric M (2010). Management. Centage Learning EMEA. Nalo, D. (2007). The Place of ICT in Growth of Business - Kenya’s Vision 2030 in Perspective. Presentation made at Annual Strathmore ICT Conference Njoroge, J ( 2002). Customer Perception of Quality of Service in a Decentralized System in the Public Utility Sector in Kenya: The case of KPLCUnpublished MBA thesis, University of Nairobi

37 References/4 Nyandemo and Kongere (2010). Project Management from Design to Implementation. Richmond Designers and Printers. Nyaoga, P. (2002)Analysis of Customer Perception of Services offered by KPLC in Mount Kenya RegionUnpublished MBA thesis, University of Nairobi Office of Electricity Delivery & Energy Reliability of the US Energy Department (2013) Website. Oloko, M. Globalization and Competitiveness, Challenges of Small and Medium Enterprises in Kenya. 4th Annual International Business Conference proceedings, Saint Leo University. Oloko, M and Ogutu, M. (2012). Influence of Power Distance on Employee Empowerment and Multinational Corporations Performance in Kenya. Education Research Journal Vol 2(2): Potter M. (1990). On Competition, Harvard Business School Press, Boston MA REA (2010). Strategic Plan 2013/2014 to 2017/2018. Nairobi Transition Authority (2013). Transfer of Functions to County Governments. Advertisement in The Standard of April 24, 2013 page 36. United Nations Centre for Regional Development (UNCRD) (2000). Project Planning, Implementation and Evaluation: A training Manual, Nairobi Wikipedia(2013). Available online at Yabs, John. Strategic Management Practices, A Kenyan Perspective (2nd Edition). Lelax Global (Kenya) Ltd, 2010


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