1 industrial energy efficiency project -kenya paul kirai national project manager during unfccc...

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INDUSTRIAL ENERGY EFFICIENCY PROJECT -Kenya

Paul KiraiNational Project Manager

During UNFCCC Mitigation in COP-10

Buenos Aires 9th December 2004

Industrial Energy Efficiency Project - Kenya 2

Project Title

Removal of Barriers to Energy Efficiency and

Conservation in Small and Medium Scale Enterprises

(SME) in Kenya


Policy Objective

Overall the provision of adequate energy for growth of Kenya’s industrial sector.

Assist industrial sector reduce energy cost through energy efficiency

Increase profitability increase employment,

and reduce poverty

Reduction of CO2 emissions


Expected OutcomesEnhanced capacity at KAM to develop and promote energy efficiency projects:

Significant increase in energy efficiency investments within Industry. Up to US$ Million.

Reduction in CO2 emissions

Participation of local financial institutions:

Inclusion of energy efficiency loans in lending portfolios

Emergence of Viable Energy Service Companies (ESCOs)

Enhanced institutional capacity and national policy to promote energy efficiency


Kenya Energy Scenario

•High dependence on imported petroleum products. Represents close to 30 % of Kenya’s total import bill. Meets 90% of

commercial energy demand

•Shortfall in hydro electricity generation resulting in increased thermal generation - Large Commercial and industrial consume 60% of electricity generated.


Kenya Energy scenario

•Wastage of energy ranges between 10% and 30% of primary energy input

•Little uptake of energy saving measures. Savings of up to 40% energy bills have been registered


Energy saving potential in industry

108,200 toe per annum

14% of industrial energy consumption

CO2 Savings 325,000 tons / year excluding wood

602,000 CO2 tons including wood


Energy saving potential

050

100150200250300350400450500

Ksh

s m

illio

n

Food Textile Paper Tea HotelIndustry type

Estimated annual savings for different types of industry

ElectricityFuel OilWood


Benefits of Energy Efficiency in KenyaBusiness Level

Lower Energy Costs

Improve Productivity and Profitability

Increase Ability to Compete in regional and Global Markets

Corporate responsibility

Country Level

Reduce Foreign Exchange Expenditures

Strengthen the Industrial Sector

Keep and Create Jobs

Contribute to Poverty reduction

Lower environmental impacts


Energy Efficiency & Productivity 1997-2000

0

100

200

300

400

500

600

700

800

900

En

erg

y C

on

sum

pti

on

pe

r G

DP

: M

TO

E/M

illi

on

$ China India Japan Kenya United States

`

Energy Intensity: Energy consumption per GDP PPP in 1995 $ Intl

Source : IEA, Energy Balance of OECD and Non- OECD Countries; Copyright (c) 2003 World Resources Institute


Project Strategy.

Awareness

Capacity Building

Financial Mechanisms

Institutional Development

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Activities.


Awareness and information

Seminars and energy auditing workshops thoughout the country

An industrial energy efficiency network covering 8 sectors and analysing energy intensities, offering bechmarks, training and energy audits.

Developed and distributed information on energy efficiency and conservation

Launched and energy mangement award which has attracted great interest

Results of 5 demonstartion projects documented and disseminated


Capacity building…

Training material acquired and adapted to local requirements

Training in energy management – over 1000 industry personnel, government officers and consultants trained

Specialized courses –

Energy audit training

International Certified Energy Manager (CEM) programme carried


Energy Saving Options


e.g. Fine tuning – Boiler excess air control

Boiler no.13000 lbs/hr

Furnace oilTemp: Above 120 degC

AirTemp: 30 Deg C

Feed WaterTemp: 85 Deg C

SteamPr: 7 bar. G

Flue GasesTemp: 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 percentageHigh FO temp

Before adjustment


e.g. Capacity Utilization- Drying Ovens

FiltersAir

Damper

Hot air

Exhaust gas @ 140 DegCFlue gas @ 310 DegCExcess air: 15-20%

The primer drier can accommodate 2 trolleysIf size is reduced, it can accommodate 3

11000 mm

3500 Size of the drier

For the present operation, only one ovenOut of 3 ovens will be sufficient

Savings in IDO: 22%


e.g. Technology oriented - Waste heat recovery

Boiler-13 TPH

Boiler-23 TPH

Boiler-23 TPH

F.O

Steam to process

Steam to process

Steam to process

Flue gas at 230 to 270 Deg C



RecoverWaste heat from the flue gases• FG temp can be at 170 Deg C• Hot water may be generated

•For use in processSavings potential:

1.2 million KSh per year (6%)Investment: 0.6 million KSh

Pay back: 6 months


Activities….Overcoming financial barriers

Participation of local financial institutions, Production of an investors guide,

Seminars for banks and industry CEOs

Financial Engineering courses, 6 courses carried out.

Working to establish Energy Service Company

Demonstration projects Over 6 project implemented

Monitoring and verification protocols devloped

Case studies developed and disseminated


Activities..Institutional Strengthening and Sustainability

Trained a group of professionals at the Kenya Association of Manufacturers and outside to continue with energy efficiecny activities beyond the projects

Built some capacity on energy efficiency at ministry of Trade and industry and, the Ministry of Energy


Activities.. Institutional Strengthening and Sustainability

Worked with government to review energy policy and ensured inclusion of energy efficiecny in all aspects of the new policy

Working to establish Energy Efficiency Bureau at government level and a standards and labeling programme

Initiated collaboration with the utilities and the electricity regulator to entrench energy efficiecny in their palns and operations

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Results-


Results in industry Over 250 manufacturing industries

involved in the project through training, energy audits etc.

In 2003, 28 industries surveyed had invested US$ 1 million in energy efficiency measures

Average payback period was 1.2 years

In 2004, all industries involved are expected to have invested close to US$4 million in energy efficiency with commensurate CO2 savings.


OIL CONSUMPTION ANALYSIS

0.19

0.20

0.18

0.20

0.16

0.14

0.15

0.15 0.14

0.13

0.18

0.23

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

MONTH

LT

S/K

GS

PR

OD

.

EnergyAudit Conducted in April 03

Fine Tuning - Fuel Savings

Lowering of energy intensities in a textile plant in Kenya

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Challenges-


ChallengesUneven trade practices – e.g. counterfeits, Dumping of goods

Skeptism and Lack of confidence among industry on energy efficiency technologies and approaches

Fixation on energy tariffs and shifting of burden to government

Low Involvement of CEOs – perception as technology based or too expensive

Size of projects too small to interest banks

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Lessons.


Lessons Public initiated programmes - with social

and/or environmental objectives – can attract private sector participation if linked to economic and business motives of private sector.

Sound institutional framework and the participation of top management in private sector are fundamental to the success .

Initial Skeptism and suspicion overcome by conscious effort to build confidence.


Lessons cont…A Flexible and predictable approach is essential in dealing with private sector. Time is of essence.

Access to information and capacity building necessary to ensure successful introduction and adoption of new approaches.

Demonstration projects and experience sharing are powerful tools for increasing adoption and replication.


Thank You


GEF-KAM Industrial Energy Efficiency Project

Budget Support from GEF and UNDP

Executing AgencyThe United Nations Office for Project

Services (UNOPS).

The Ministry of Trade and Industry (MTI) through the Kenya Association of

Manufacturers (KAM).

Implementing Agency

1 industrial energy efficiency project -kenya paul kirai national project manager during unfccc...

Documents

energy efficiency slide

energy efficiency productivity

benefits of energy efficiency

energy efficiency projects

energy efficiency investments

energy intensity

energy bills

industrial energy consumption