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Increasing Energy Access

while mitigating climate change

Case for Energy EfficiencyPAUL KIRAI

National Project Manager, GEF-KAM ENERGY PROJECT - Kenya

At the e-parliament November 2006,

Ol Tukai Lodge - Amboseli

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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

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Need for “new Power”

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Options for increasing Energy Access

Generate More Energy Improve distributionReduce Demand

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Constraints to Availability

Power sectorInefficient 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 - stovesSame for petroleum Sector

Losses contribute to scarcity and price increase

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Electricity Losses

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0

100

200

300

400

500

600

700

800

900

19711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999

Energy Consumption per GDP : MTOE/Million $

China India Japan Kenya United States

`

Energy Intensity Vs GDPEnergy Intensity Vs GDP

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Energy Elasticity

Total Final Energy Consumption & GDP

4.10

4.20

4.30

4.40

4.50

4.60

4.70

4.80

3.05 3.10 3.15 3.20 3.25 3.30 3.35 3.40 3.45 3.50 3.55

log (GDP)

log (Energy)

Energy demand is 1.4 times higher than GDP growthEnergy demand is 1.4 times higher than GDP growth

Energy-GDP Elasticity

Avg.'85-20011998 1999 2000 20011994 1995 1996 19971990 1991 1992 1993

1.401.07Energy Elasticity0.97

1985

1.47 1.08 1.511.24 1.34 1.64 1.94 -3.50 0.58 0.970.47

Source : EIA,DOE, BP Statistic Review of World Energy, EGAT

Energy Elasticity = Energy Elasticity = ∆∆tt Energy Consumption/ Energy Consumption/ ∆∆tt GDPGDP

Ave. Energy Elasticity

1.4 : 1.0

New Target1 : 1

or lower

Thailand

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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

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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

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Energy Saving Potential

Estimated energy saving potential in Kenya for selected sub-sectors

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Introducing energy efficiency in industryThe GEF-KAM Project

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Awareness

Capacity Building

Financial Mechanisms

Institutional Development and Sustainability

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Adoption in Industry

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Where are the Energy Savings

Technology Upgrade

coupled with attitude change

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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%

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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

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Technology Upgrade - 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

Flue gas at 230 to 270 Deg C

Flue gas at 280 to 300 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

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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

J

a

n

-

0

3

F

e

b

-

0

3

M

a

r

-

0

3

A

p

r

-

0

3

M

a

y

-

0

3

J

u

n

-

0

3

J

u

l

-

0

3

A

u

g

-

0

3

S

e

p

-

0

3

MONTH

LTS/KGS PROD.

Energy efficiency measures

Practical energy savings

Lowering of energy intensities in a textile plant in Kenya

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“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!!

CO2 Savings estimates

5 years - 580,000 tonnes @ $5.50 per tonne,

15 years - 5.27 million tonnes @US$ 0.6 per tonne

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“New” Energy from Demand Reduction

25% reduction in energy consumption

Ene

rgy

Uni

ts

Time

25%

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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

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Challenges for Policy

Promoting Energy Efficiency at all levelsMaking the “saved” energy available for increasing access to energyManaging Rebound effect (protecting the gains)Up-scaling to all sectors of the economyLack of targets, and standards

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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 schemes4. Mainstream Energy Efficiency into policy and

energy policy and programmes.5. Build capacity

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Engage all stakeholders

public-private partnership

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•Thank You