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Kenya

Opportunities in the Energy Sector. Kenya. 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.

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Kenya

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  1. Opportunities in the Energy Sector Kenya

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

  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: http://swera.unep.net/ • 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 • Plans for 450 Km of 400 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: • Hedge • Transact in Dollars • Corruption • Say no. • Culture • Get a good local partner • Check references, visit the US Embassy in Nairobi.

  15. Challenges • Political Risk • Relatively stable. • Get Insurance http://www.miga.org/ • 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. Thanks Joseph Nganga jnganga@africarenewables.com +1 704 804 4684 Developing renewable energy and energy efficiency projects.

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