1.
EXISTING SUPPORTING
REGULATORY FRAMEWORK
ENERGY EFFICIENCY
PRESENTED BY:
Mr. Robert Pavel Oimeke,
Director Renewable Energy
Energy Regulatory Commission
25th April 2013, Hilton
Energy Regulatory Commission
FOR
Hotel, Nairobi

2.
OUTLINE
• Introduction
– Energy sector Institutional structure
– ERC Mandate
• EE & EC Policy Framework
– Sessional Paper No. 4 of 2004
– Vision 2030
Energy Regulatory Commission
Slide 2

3.
OUTLINE CONT’D
• EE & EC Legal Framework
– The Energy Act, 2006
• EE & EC Regulatory Framework
– The Energy Management Regulation, 2012
• Licensing Of Energy Auditors
• Q&A
Energy Regulatory Commission
Slide 3

4.
ENERGY SECTOR INSTITUTIONAL STRUCTURE
Ministry of Energy
Energy Regulatory Commission
Electricity subsector
Kenya Electricity Generating Company
Kenya Power and Lighting Company
Rural Electrification Authority
Kenya Electricity Transmission Company
Geothermal Development Company
Independent Power Producers
Petroleum subsector
Kenya petroleum refineries
Energy Regulatory Commission
Slide 4
Kenya pipeline company
National Oil Corporation
Oil marketing companies

5.
POWER INSTITUTIONAL STRUCTURE
Energy Regulatory Commission
Slide 5

6.
ERC MANDATE
• ERC is a single sector regulatory
agency with responsibility for
economic and technical regulation
renewable energy and downstream
including:
• Tariff setting and review
• Licensing
• Enforcement of Requirements
• Dispute settlement
• Approval of power purchase
• Preparing indicative plans
of electric power,
petroleum sub-sectors
and network service contracts
Energy Regulatory Commission

7.
ERC MANDATE
CONT’D
• The Renewable Energy department
Renewable Energy (RE) and Energy
and promotion which include the
• Collect and maintain RE & EE
following responsibilities:-
data
• Prepare RE & EE national plan
• Initiate development of Standards
• Develop requisite regulations
• Provide information and statistics
require from time to time
is responsible for
Efficiency (EE) regulation
for RE & EE
and recommend to the Minister
to the Minister as he may
Energy Regulatory Commission

8.
ERC MANDATE CONT’D
• Designate energy consumers
energy auditors
• licensing, Monitoring and enforcement
• Advice Commission, internal
and maintain list of accredited
parties as well as external
pertaining to RE & EE
stakeholders on technical matters
of RE&EE Regulations
Energy Regulatory Commission

9.
ENERGY EFFICIENCY BACKGROUND
by high energy costs, supply
utilization and dependence on
commercial and transport sectors.
• The Kenyan energy sector is characterized
constraints of commercial energy, inefficient
imported petroleum products for industrial,
• The Government of Kenya, through
Sessional Paper No. 4 of 2004 on energy
(section 6.6.6.1), recognizes that energy
development process and encourages
in all sectors of the economy in order
enhance competitiveness. Industries,
major consumers of commercial energy
energy.
• Energy efficiency measures can reduce
is a critical input into the country’s
energy efficiency and conservation
to reduce cost and wastage, and
businesses and institutions are the
energy demand and costs, improve
energy security (by reducing dependence
competitiveness and help to mitigate
emissions.
on imported petroleum), improve
climate change by lowering GHG
Energy Regulatory Commission

10.
SESSIONAL PAPER NO. 4 OF 2004
• Lays the policy framework upon which cost
cost-effective, affordable and adequate
quality energy services will be made available to the domestic economy on a
sustainable basis over the period 2004-2023.
• The Sessional Paper encourages energy efficiency and
conservation (6.6.6) in all
sectors of the economy in order to reduce cost and wastage, and enhance
competitiveness. Industries, businesses and institutions are the major consumers of
commercial energy.
• The Government recognizes the need to remove barriers and constraints to adoption of
energy efficiency and conservation technologies and will therefore put appropriate
measures in place including:-
Energy Regulatory Commission
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11.
SESSIONAL PAPER NO. 4 OF
2004 CONT’D
• encouraging private sector participation in providing technical and financial
support for energy conservation and
efficiency
• enhancing the provision of energy audits and advisory services by the
Ministry of Energy to institutions and companies including
industries and financial institutions on benefits of energy
• encouraging demand side management by industrial and commercial
sectors, and where necessary provision of the necessary technical support
by the Ministry of Energy and electric power utilities
Energy Regulatory Commission
sensitisation of
efficiency
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12.
SESSIONAL PAPER NO. 4 OF
• development of standards and codes of practice on cost effective energy
use
• dissemination of energy efficiency and conservation information to
Energy Regulatory Commission
consumers
• establishment of energy and equipment testing laboratories for efficiency
and accelerated equipment ageing testing
2004 CONT’D
12

13.
SESSIONAL PAPER NO. 4 OF 2004 CONT’D
• Transport sector energy efficiency and conservation. The government will
pursue policies to encourage energy efficiency and conservation which
includes:-
– Taxation - choke-off wasteful consumption of motor fuels, particularly
– Fuel Economy - develop and enforce standards for fuel efficiency of motor vehicle engines
and also continue to enforce speed limits
– Awareness raising on opportunities to conserve
Energy Regulatory Commission
– Alternative form of transport
petrol
fuel
13

14.
SESSIONAL PAPER NO. 4 OF 2004 CONT’D
• The policy is currently under review; National Energy Policy aligned to the
Constitution.
• The Ministry of Energy is responsible for the sector’s
Energy Regulatory Commission
policy development.
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15.
VISION 2030
• A national long-term development blue-prosperous
-print to create a globally competitive and
prosperous nation with a high quality of life by 2030, that aims
to transform Kenya
into a newly industrializing, middle-income
all its citizens by 2030 in a clean and secure environment.
country providing a high quality of life to
• The vision is anchored on three key pillars; economic, social and political
Energy Regulatory Commission
governance.
• Energy is one of the infrastructural enablers of the three “pillars” of Vision 2030.
15

16.
VISION 2030 CONT’D
• Commercial energy is dominated by petroleum
movers of the modern sector of the economy, while
needs of the traditional sector including rural communities and the urban poor
• At the national level, wood fuel and other biomass account for about 68% of the
total primary energy consumption, followed
and others including coal at about less than 1%
• The Vision identifies the need to generate more energy and increase efficiency in
Energy Regulatory Commission
energy consumption.
and electricity as the prime
wood fuel provides energy
by petroleum at 22%, electricity at 9%
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17.
THE ENERGY
– The Act regulates petroleum, electricity and renewable energy; including energy
efficiency and conservation.
– Part V of the Act covers Energy Efficiency and conservation is outlined in Sections
105 and 106 of the Energy Act, 2006.
– Section 105 and 106 main dwells on designation of energy users by the
Energy Regulatory Commission
Commission.
ACT 2006
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18.
ENERGY MANAGEMENT
• Background:
REGULATIONS
– The objective of the gazetted Energy Management Regulations, 2012 is to
facilitate efficient use of energy through better understanding of supply and
use, management and the implementation of energy efficiency and
conservation measures.
– These regulations target Industrial
Industrial, Commercial and Institutional
consumers of Energy, which offer the highest potential for energy efficiency
and conservation.
– These regulations have been developed to facilitate the implementation
Energy Efficiency and Conservation
of the Energy Act, 2006.
– The regulations govern operations
and conservation including licensing of Energy Auditors and Audit firms
Energy Regulatory Commission
of
as outlined in Sections 105 and 106
and licensing of energy management
firms.

19.
ENERGY MANAGEMENT REGULATIONS CONT’D
– All energy consuming facilities carry out energy audits every three
years
– All energy audits be carried out by an energy auditor licensed by ERC
– All energy audit reports, Implementation plans and Energy Policies
shall be submitted to ERC
– Facilities will be required to implement at least 50% of the energy
audit recommendations within three years.
• GEF-KAM project supported by UNDP found that
waste through inefficient use.
35% of energy goes to
Energy Regulatory Commission

20.
LICENSING OF ENERGY AUDITORS
• Minimum qualification for licensing of Energy Auditors:
Education (Academic) Professional (Job)
1 A degree in technology or engineering
or equivalent in a relevant field.
Auditors:-
At least three years work experience in
Energy operations or Maintenance or
Planning
Energy Regulatory Commission
2 Post graduate Engineer (Masters of
Engineering / Masters of Technology)
At least two years work experience in
Energy operations or Maintenance or
Planning
3 A graduate Engineer with post-graduate
degree in Energy
Management or equivalent
At least two years work experience in
Energy operations or Maintenance or
Planning
4 Higher National Diploma Engineer or
equivalent
At least six years work experience in
Energy operations or Maintenance or
Planning

21.
LICENSING OF ENERGY AUDITORS
• Minimum qualification for licensing of Energy Auditors:
5 A post graduate degree in Physics or
Electronics or Chemistry (with Physics
and Mathematics at graduation level)
Auditors:-
At least three years work experience in
Energy operations or Maintenance or
Planning
Energy efficient
Energy Regulatory Commission
6 A First degree in Architecture or
equivalent field
At least three years work experience in
design and use of
buildings
7 A Masters degree in Architecture or
equivalent in relevant field.
At least two years work experience in
design and use of
Energy efficient
buildings

22.
LICENSING OF ENERGY AUDITORS CONT’D
• Minimum qualification for licensing of Energy Auditors:
– An energy management certification examination from a body recognized by the Energy
Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of
Science in Energy Management from recognized University
– Category B - Conducted at least five energy audits.
– Category A - Conducted at least five energy audits, one of which must have been an
Energy Regulatory Commission
investment grade audit.
• Online Applications only accepted
• Written Interviews
• Oral Interviews
Auditors:-

23.
LICENSING OF ENERGY AUDITORS CONT’D
• Minimum qualification for licensing of Energy Auditors:
– An energy management certification examination from a body recognized by the Energy
Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of
Science in Energy Management from recognized University
– Category B - Conducted at least five energy audits.
– Category A - Conducted at least five energy audits, one of which must have been an
Energy Regulatory Commission
investment grade audit.
• Online Applications only accepted
• Written Interviews
• Oral Interviews
• Award of License
Auditors:-

24.
Q&A SESSION
Energy Regulatory Commission

25.
THANK YOU
Energy Regulatory Commission
Slide 25