Kenyan Leader Opens Energy Conference 7 October

Text of unattributed report entitled “Kibaki to open key energy conference” published by Kenyan privately-owned daily newspaper The Standard website on 6 October

The National Energy Conference, to be officially opened by President Mwai Kibaki on Tuesday [7 October], is seen as critical in helping the government chart new ways of dealing with the energy crisis currently gripping the country.

The three-day conference at the Kenyatta International Conference Centre, Nairobi, is expected to pool together key analysts and decision makers in the energy industry, from both the private sector and government.

The Standard has set the pace in reporting on the effects of the global spike in fuel prices, and the rising costs of electricity on companies and Kenyans.

A special report in our business pullout, The Financial Journal (FJ) last week explained in detail the nature of the crisis and the possible solutions.

Oil prices had began to fall in August from world record highs, but rallied again last week, in the wake of the US financial crisis.

The forum brings together 350 participants, 50 of them renowned energy experts and will be spiced up on the side by an exhibition by key energy sector firms. “As a ministry, we realized that there is potential out there that needs to be harnessed. We do not have a monopoly of ideas and that is why we are inviting all people of good will to come and share their thoughts with us,” said Energy Minister Mr Kiraitu Murungi ahead of the conference.

“We want to discuss the best policy options and business models for increasing the use of renewable energy sources, securing petroleum and coal supply options and strengthening power generation, transmission and distribution,” Kiraitu added.

The conference, the minister noted, will address energy pricing, and its impact on the development of competitive energy markets. Other issues to be addressed are policy, legal and institutional frameworks for electricity and renewable energy sources including the controversial issue of nuclear power as a long-term option.

“We have the gathered the best minds from the around globe. This conference is just a foundation of more to come as plan to have similar annual conferences. We want to raise the bar in our efforts to build capacity and discharge our core mandate of providing affordable, secure, adequate and quality energy services to Kenyans,” said Kiraitu. Kenya relies almost entirely on electric power and petroleum products to fire the formal economy.

The country’s current unsuppressed peak demand is now about 1100 megawatts (MW), relative to an effective generation capacity of 1,053 MW, leaving little reserve capacity. Demand is expected to hit 1,620 MW, requiring an effective generating capacity of 1,860 MW, including an inbuilt 15 per cent reserve margin.

However, the government still hopes to connect at least one million new consumers of electricity within the next five years, focusing on rural areas where connectivity now hardly exceeds 10 per cent.

By 2020, the government expects to have connected up to 40 per cent of all rural households to national electricity grid. This should eliminate fuel shortages at all inland depots.

Originally published by The Standard website, Nairobi, in English 6 Oct 08.

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