1 Increasing Energy Access while mitigating climate change Case for Energy Efficiency PAUL KIRAI National Project Manager, GEF-KAM ENERGY PROJECT - Kenya At the e-parliament November 2006, Ol Tukai Lodge - Amboseli

2 Accessibility factors  Availability – scarce energy recourses, distance,  Cost, affordability - Prohibitive acquisition and maintenance costs  Awareness – Not knowing options –Large population in Asia and sub-Sahara Africa rely primarily on biomass fuel

3 Need for “new Power”

4 Options for increasing Energy Access  Generate More Energy  Improve distribution  Reduce Demand

5 Constraints to Availability  Power sector  Inefficient Generation,  Distribution Losses – Up to 23%  End use Losses – Up to 40%  Wood fuel Sector  Poor production efficiency 15-30% (Uncontrolled and illegal operations)  Inefficient end use - stoves  Same for petroleum Sector  Losses contribute to scarcity and price increase

6 Electricity Losses

7 Energy Intensity Vs GDP

8 Energy Elasticity

9 Kenya Energy Scenario High Biomass Use Dependence on imported petroleum products for Industry and Transport. Represents close to 30 % of Kenya’s total import bill. Meets 90% of commercial energy demand

10 Kenya Energy Scenario Shortfall in hydro electricity generation resulting in increased thermal generation - Large Commercial and industrial consume 60% of electricity generated. Wastage of energy ranges between 10% and 30% of primary energy input

11 Energy Saving Potential Estimated energy saving potential in Kenya for selected sub- sectors

12 Introducing energy efficiency in industry The GEF-KAM Project. Awareness Capacity Building Financial Mechanisms Institutional Development and Sustainability

13 Adoption in Industry

14 Where are the Energy Savings Technology Upgrade coupled with attitude change

15 Capacity Utilization- Drying Ovens Filters Air Damper Hot air Exhaust 140 DegC Flue 310 DegC Excess air: 15-20% The primer drier can accommodate 2 trolleys If size is reduced, it can accommodate mm 3500 Size of the drier For the present operation, only one oven Out of 3 ovens will be sufficient Savings in IDO: 22%

16 Fine tuning – Boiler excess air control Boiler no lbs/hr Furnace oil Temp: Above 120 degC Air Temp: 30 Deg C Feed Water Temp: 85 Deg C Steam Pr: 7 bar. G Flue Gases Temp: 247 Deg C %O2; 11.8 %CO2: 6.7 CO: 1100 ppm Boiler efficiency: 75.4% Excess air: 120% Dry Flue gas losses: 17.8% Moisture losses: 5.2% Radiation losses: 2 % Blowdown losses: 0 Issues: Very high Excess air (90-100%) Very high flue gas temperature Very high CO percentage High FO temp Before adjustment

17 Technology Upgrade - Waste heat recovery Boiler-1 3 TPH Boiler-2 3 TPH Boiler-2 3 TPH F.O Steam to process Flue gas at 230 to 270 Deg C Flue gas at 280 to 300 Deg C Recover Waste heat from the flue gases FG temp can be at 170 Deg C Hot water may be generated For use in process Savings potential: 1.2 million KSh per year (6%) Investment: 0.6 million KSh Pay back: 6 months

18 Energy efficiency measures Practical energy savings Lowering of energy intensities in a textile plant in Kenya

19 “Realized” Power from GEF-KAM Project Energy Savings 115,000Toe or 1,198 GWh in 4yrs – worth US$22m Represents 1/4 of annual electricity consumption or a Equivalent to 140MW generation plant operating for 1 Yr This available Power!! CO 2 Savings estimates 5 years - 580,000 $5.50 per tonne, 15 years million 0.6 per tonne

20 “New” Energy from Demand Reduction 25% reduction in energy consumption Energy Units Time 25%

21 Some Benefits of Energy Efficiency Availability of energy at 1/3 cost of new generation Lower environmental impacts Reduce Foreign Exchange Expenditures Keep and Create Jobs Contribute to Poverty reduction

22 Challenges for Policy  Promoting Energy Efficiency at all levels  Making the “saved” energy available for increasing access to energy  Managing Rebound effect (protecting the gains)  Up-scaling to all sectors of the economy  Lack of targets, and standards

23 Policy Suggestions 1. Establish legislation to promote and improve efficiency  Generation – Set Targets (Lts/KW)  Distribution (low losses)  Utilization of Energy 2. Introduce Energy Standards and Labels 3. Introduce incentive schemes 4. Mainstream Energy Efficiency into policy and energy policy and programmes. 5. Build capacity

24 Engage all stakeholders public-private partnership

25 Thank You