1. Opportunities in the Energy Sector
Kenya
Opportunities in the Energy Sector

2. Africa Energy and Renewables
A little about us:
Energy services company.
Develop renewable energy projects.
Act as local Reps. for OEMs
Consult with local and international firms on Energy in Kenya.
Involved in Community Development projects.

3. A few facts '08 econ growth 7% '09 econ growth 3% Population 38 MM
On Grid: 18%
Trade Blck: COMESA
Current Electricity Generation
Hydro
Diesel
Geothermal
Misc generation
Solar
Wind
Biomass

4. The Energy Sector Current Generation capacity: 1,150 MW
Planned Generation in 2018: 3,011 MW
Growth Drivers:
Govt. Commitment to connect 1MM new consumers in 5yrs.
Growing economy
Growing population
Technology adoption including cellphones, TVs, Computers etc.

5. Why will the additional capacity come from?
Large Hydro:
60 MW on Mutonga or River Tana. Est. cost $250MM
140 MW at Lower Grand Falls. Est. cost $600MM

6. Where will the additional Capacity come from
Small Hydro: 3,000 MW across the country.
Initiative to tea factories that often are located in ideal settings.
Feed in tariffs for IPP: $0.06 to $0.12/kWh

7. Geothermal 7,000 MW potential in the Great Rift Valley
Currently 165 MW developed or under development including Kengen and Ormat.
Govt. Forming Geothermal Development Corp. that will carry the exploration risk and lease out proven steam to IPP.
No published Feed in Tariff. - Negotiate

8. Coal Govt. doing feasibility study for a 300 MW Coal Plant.
Opportunities
Developing a coal berth at the port of Mombasa.
Plant construction and operation
Coal exploration – Govt. currently leasing out 8 coal blocks around the country.

9. Solar Average solar insolation btwn 4 and 6kWh per M²
Currently 500,000 homes have solar panels.
Govt. using solar panels for remote schools and clinics
No Feed in Tariff on Solar yet “too expensive”.
Open to proposals though

10. Wind Govt. believes there is 405MW potential
Wind Resource Map available:
Feed in Tariff : $0.09

11. N uclear Govt. seeking an investor for a 500 MW to 1GW Capacity.
Construction time frame: Next 7 years.
Arrangement: BOOT ( Build Own Operate Transfer)
Based on a 30yr PPA.

12. Other Opportunities Infrastructure: Plans for 400 Km of 132 kV
Grid requires 60,000 transformers over the next 5 yrs. - Local Manufacture or import?
Annual maintenance of 2,000 transformers.
Meters? Smart Meters? Switchgear? Insulators? etc.

13. Challenges Information: Who? Where? How? What Price?
Network. Google utility events on the continent and attend. Linkedin.com
USDTA
US Embassy in Nairobi
Kenyans in Diaspora
Common sense
AGOA
MBITA

14. Challenges Currency Risk: Corruption Culture Hedge Transact in Dollars
Say no.
Culture
Get a good local partner
Check references, visit the US Embassy in Nairobi.

15. Challenges Political Risk Cost of doing business
Relatively stable.
Get Insurance
Cost of doing business
Pretty high in Nairobi. Factor it into your models.
Payment Risk - significant
Cash LC

16. Challenges Legal Protection Get proper legal representation.
That being said, structure your transactions with the assumption that there is no legal recourse.
Long legal process
Tons of loopholes
Disadvantaged from a local network perspective
Expensive

17. Have Fun! Kenya is a great place to do business: Food Culture Safari
Indian Ocean Beaches
Kilimanjaro and Mt. Kenya
People.
Don't sweat the small stuff:
Traffic, congestion etc.

18. Developing renewable energy and energy efficiency projects.
Thanks
Joseph Nganga
Developing renewable energy and energy efficiency projects.