LOCALIZATION OF POWER TECHNOLOGIES THROUGH PARTNERSHIPS Presented by: Patrick Mwangi Muriithi 2018 G2G INNOVATION SEMINAR, PRIDEINN PARADISE 18TH JUNE - 22ND JUNE 2018

PATRICK MWANGI MURIITHI Engineer I, Operations, Central office, Ngong Wind MSc Nuclear Power P Engineering from KEPCO Nuclear International Graduate School (2018). He holds an undergraduate degree from the University of Nairobi (2006) and Mechanical Engineer with over 10years experience in KenGen serving in Western Hydros - SGSS, Eastern Hydros - Upper Tana, and Ngong wind power plants.

Presentation Outline Introduction Review of a Similar industry KenGen-Kenyan situation Proposal for Implementation Cost benefit Analysis Conclusion

1. Introduction Motivation for Writing: Professor Field at KINGS Eng. Stephen from James Walker Industry Exposure and unemployment rate in Kenya Localization: Process of adapting a product or content to a specific locale or market Partnerships Agree to cooperate to advance mutual interests

1. Introduction Strengths: Weaknesses: Vision 2030 Financing Big 4 Agenda 1: Manufacturing Power industry experience Low electricity demand Weaknesses: Financing Lack of dedicated expertise Patents and copyrights Procurement systems Opportunities: Research organizations PR with suppliers Urbanization Regional markets Threats: Competitive markets External control Risks

2. Review of similar industry Korean Nuclear Power Self Reliance Scarce energy resources Most important resource is human resource Technology export internationally in the 2000’s

2. Review of similar industry DHI, KEPCO KNF etc Nuclear Power development Suppliers and Manufacturers Universities and Institutes Research organizations Architecture and Engineering organizations Operations and Maintenance organizations KEPCO, KHNP SNU, KAIST e.t.c KEPCO E&C KAERI, KHNP CRI

3. KenGen/Kenyan Situation 3.1 Experience in the power industry

3. KenGen/Kenyan Situation 3.2 Vision 2030 Flagship projects Increased demand Localization opportunities Favorable tariffs Reduced production cost

3. KenGen/Kenyan Situation 3.3 Regional positioning Connectivity in Africa by 2017 Source: energydata.info Capacity increase by 5,000MW Kenya produces >90% of Geothermal in Africa Ethiopia targets 1GW by 2020, Tanzania 180MW, Madagascar, Rwanda and SS also interested Kenya - 9th in Africa & 2nd in Eastern Africa in hydro African Appetite to develop

3. KenGen/Kenyan Situation 3.4 Availability of capable partners Some existing obsolete designs Capable Fabricators and manufacturers OEM’s resource in all aspects of projects Collaboration with other players in industry University, Research, and Funding Institutions

3.4 Availability of capable partners cont. Example: Heavy Engineering Involvement with KenGen a) Contracted by Green Energy Group Olkaria Modular Geothermal Plant Pilot Project (2012) Manufacture of Silencer for Modular Geothermal Plant b) Contracted by VOITH hydro Germany Kiambere Power Station construction in 1985 to 1987 Installation of hydro-mechanical and balance of plant equipment Gitaru power station 1999-2000 Manufacture of turbine parts, Installation of BOP equipment Kiambere Power Station Rehabilitation in 2008 to 2010 Manufacture of turbine and generator parts

3.4 Availability of capable partners cont. c) Contracted by Alstom Hydro Turkwell Gorge HEPP in 1988 to 1990 Manufacture of penstock, MIV, and installation of BOP equipment d) Contracted by TOSHIBA and IHI Industries Sondu Power Station construction in 2005 to 2007 Manufacture and installation of intake and waterway equipment Installation of balance of plant equipment

4. Proposal for implementation National policy or position on Localization Contracts scopes enhancement for new build: Local component, Technology transfer, OJT, OJP, system design, and testing Partnerships to develop prototypes Research agencies, Local universities and institutes, Financiers, Local and international contractors Adopting the technology in prospective projects Optimization and standardization of the existing products

5. Cost benefit Analysis Cost Benefits a) Research a) Brand Growth b) Standardization – International b) Industrial growth c) Team building c) Corporate Social Investment d) Equipment, machinery and Tools d) Electricity Demand rise e) Human resource e) Increased revenue streams f) Reduced plant capital costs

6. Conclusion KenGen is a key driver for Localization KenGen in Kenya is strategically positioned Joint synergies in the public and private sectors Enhance demand with increased local manufacturing Contribution to One big 4 agenda A significant Corporate Social investment