TITLE:FACTORS AFFECTING RENEWABLE ENERGY IN KENYA

Eric Ngondi NBI44326 Supervisor: Mr. Muiya.

CHAPTER ONE INTRODUCTION TO THE STUDY

1.1

Introduction

This chapter focuses on defining what the study is about. It will include: background of the study, problem statement, objectives of the study, and research questions.

1.2

Background of the Study

For a long period of time, Kenya has not met its power needs. This is due to the current power stations not having the capacity to generate sustainable power for the country and power being very expensive. The power stations are mainly hydro power stations and diesel power stations. Maintenance of petroleum-ran power stations is very costly as the price of petroleum keeps on rising. This results in power being very expensive, thus unaffordable to many. Power rationing is sometimes sought as a solution to low power levels when hydro power stations do not have enough water thus hampering production in some sectors for example industries. All this make power supply to be very unreliable as one may be unable to pay the bills thus power cuts or the power may be disconnected due to underproduction. The expensive power has a ripple effect as the cost of production is relative to the cost of power. Goods and services are therefore expensive and the price has kept on rising. Another factor is the monopoly in power generating companies. In Kenya there is only one power generating company Kengen. With competition, the price of power would go down. Kenya lying in the tropics experiences sunny days throughout the year. There also rains most rainy seasons. There are steam wells in Kenya specifically in Olkaria Naivasha. There are places that experience high amounts of wind especially the hilltops. All these are examples of renewable energy that have been sought to bridge between power demand and supply. The implementation has not been very smooth due to various factors. Some of these include: poor managerial skills, not adapting to new technology, lack of finance, political influence, government policy, organizational structure, lack of knowledge and culture.

1.3

Statement of the problem

Power needs in Kenya have not been met yet there are plenty of renewable energies to meet this need. Wind, solar and geothermal energies are in abundance because of Kenya lying between the tropics. Implementation of renewable energy not being done efficiently in spite of having all these free resources. Petroleum based power stations keep on being used and new ones being put up yet there are no petroleum wells in the country. Imported petroleum is very expensive as it is categorized as a precious commodity. Another factor that makes petroleum based power very expensive is that petroleum pricing is based on foreign exchange rate which is always fluctuating and recently inflation has been on a steep rise. There is only one power generating company in Kenya-Kengen and only one power distributing company-Kenya Power. This monopoly is likely to be influenced for the benefit of a few at the expense of a majority. With these factors power ends up being very expensive; this makes it unaffordable to some people. It being expensive also makes consumables whose production involves use of power very expensive. All these make the cost of living to be very high. There has not been enough enlightenment of Kenyans in matters domestic power generation. This is evidenced by the overreliance on Kenya Power to supply power yet microgeneration for domestic use is highly possible. Not many Kenyans are aware that solar panels are tax free and their installation cost is quite low yet they do not take steps to save cost and produce their own free power. Not many are aware that wind turbines can easily be improvised at home.

1.4

Objectives of the study

General objectives The general objective is to investigate the factors affecting implementation of renewable energy projects in Kenya

Specific objectives The specific objectives of the study are:

To examine the managerial skills affecting implementing new power plant projects in Kenya.

ii.

To assess the extent of culture influence and awareness in Kenyans concerning domestic power generation.

iii. iv. v.

To verify government policy on renewable energy. To investigate the cost of domestically generated power supply To identify the available renewable energy resources and their sustainability.

1.5

Research questions

The following research questions will guide the study:i.

How effective are the relevant government bodies in implementing sustainable energy?

ii.

What is the extent of awareness in Kenyans concerning domestically generated power?

iii. iv. v. vi.

What is the cost of domestically generating power? What renewable energies are available? What is the government policy in implementing renewable energy? How available are funds to implement renewable energy by the government?

1.6

Significance of the study

The significance of the study is that it will be beneficial to the stakeholders: The government The study will be useful to the government in that there will be a demonstration of the factors affecting sustainable power generation in the country. There will be examination of the existing government policy on renewable energy which may result in refining it in case of loopholes. The effect of having one power generating company and one power distributing company will be examined too.

The power generating companies The study will examine factors affecting on-going renewable energy power stations thus get findings on how they can be improved. The study will be beneficial to also Kengen because it will highlight the effect of the existing petroleum based power stations on sustainable power generation. Prospective investors It will show how privately owned power generating companies may be involved in renewable energy power generation. Citizens The study will result in finding s on domestic power production thus knowledge of how possible it is to go about implementing ones own power generation.

1.7

Limitations of the study

Lack of cooperation It is expected that not all prospective respondents will cooperate with the researcher. Therefore the researcher will use a letter from The Kenya Institute of Management to prove that the information collected is for academic use only. Assurance will be given to sceptical respondents that the information will be used constructively. Suspicion There may be respondents who will be unwilling to give the required information for fear that the information may be used against them. For this the researcher will assure them of confidentiality. The introduction letter from KIM will come in handy. Hostility It is expected that the researcher will not be welcomed everywhere. This will be overcome by maintaining professionalism by assuring that the research is for academic purposes only and if they are still unwilling, then no coercion will be used.

1.8

Scope of the study

The researcher shall concentrate on the Ngong Hills wind power generating station, Olkaria geothermal power station, Mr. Bazaa and Mr. Ukuus home in Kangundo and Tala

respectively for improvised wind turbines investigation. The researcher will also visit Histoto Ltd and Davis and Shirtliff Ltd to research on companies that deal in solar. He will visit the Ministry of Energy and Meteorological to gather facts on government policy and the suitability of the country in implementing solar and wind energy. He will also visit the gas turbine kerosene run power station being built by Masood John Brown-MJB and the Aggreko diesel run generators field, both in Embakasi to investigate why the petroleum power stations are still being put up. The researcher will interview about 20 people randomly in Nairobi to find out their take on renewable energy, home based power solutions and their take on the current power situation in Kenya. He will also find out what their opinion is on solving power shortage and expense problem. This investigation will be complete by the end of October 2011.