1. 50 + Years of Manufacturing Excellence!Since 195950 + Years of Manufacturing Excellence!Since 1959 Energy Efficiency & Conservation Presentation during the workshop on Innovative Financing for the water sector By Nicholas Gachie – Executive Officer, Energy Services Kenya Association of Manufacturers

2. 50 + Years of Manufacturing Excellence!Since 1959 Agenda 1. Background 2. Kenya energy scenario 3.Energy at water and waste water industry 4.Regional Technical Assistance Programme (RTAP) 5. Way forward

3. 50 + Years of Manufacturing Excellence!Since 1959 1.BACKGROUND OUR SERVICES Representation to Government regulators  Research  Policy Advocacy  Seminars & Workshops  Specialised Training  Firm level interventions  Energy Audits  Work Permit  AGOA Visa Processing  TREO Processing  Business Information  Communication  Customer Delight OUR SERVICES Representation to Government regulators  Research  Policy Advocacy  Seminars & Workshops  Specialised Training  Firm level interventions  Energy Audits  Work Permit  AGOA Visa Processing  TREO Processing  Business Information  Communication  Customer Delight KAM is Kenya’s representative organization for manufacturing Value Add industry Established in 1959 Owned and run by members – 700 Offices in Nairobi, Mombasa, Kisumu, Nakuru, Eldoret, Athi River and Thika

4. 50 + Years of Manufacturing Excellence!Since 1959 Centre for Energy Efficiency & Conservation (CEEC) KAM in conjunction with the ministry of energy established Centre for Energy Efficiency & Conservation.(CEEC) CEEC runs energy efficiency and conservation programs. They include Energy Audits, Energy Management trainings and Energy management Award programme to recognize companies that have excelled in energy efficiency and conservation. Note: So far over 120 companies audited resulting in reduced demand of energy equivalent to 16MW and saving around Kshs 1.6 billion.

5. 50 + Years of Manufacturing Excellence!Since 1959 a.Energy Audits An energy audit is an inspection, survey and analysis of energy (Electricity, Fuels..etc) flows for energy conservation in a process or system. Aims to reduce the amount of energy input into the system without negatively affecting the output(s). Typical saving potential in facilities is 15-30% Energy audits designed to help companies: Identify energy wastage, Determine saving potential Give recommendation on measures to be implemented.

6. 50 + Years of Manufacturing Excellence!Since 1959 b.Benefits Cost reductions through efficient use of energy Reduced maintenance cost Reduced exposure to fluctuating energy supply and prices and blackouts Improved reputation with customers and society thorough environmental protection. Reduction of regional and national energy demand; Help in Creating an Energy Management Team and establishing Energy policy Improved employee motivation, health and safety Compliance with legislation and ISO 14001 targets.

7. 50 + Years of Manufacturing Excellence!Since 1959 2.Kenyan energy scenario We perceive the energy sector to be struggling to keep pace with the economic boon. The gap created by low generation capacity is quickly filled by emergency generators. The fuel cost component is driving electricity cost to levels never witnessed before in this country and indeed the region.40 % or more of cost goes to fuel adj. The impact of this to the economy is evident negative effect. Cost of goods are rising and inflation has crossed the 16% level. Where are we headed?

8. 50 + Years of Manufacturing Excellence!Since 1959 Electricity supply -2010 Installed capacity (Mw) Sources of Elect. Installed capacity (MW) Effective generation (MWh) % (Generated) Hydro7582,17039 Geothermal1981,33924 Thermal3221,91536 Wind5.4516.30.3 Mumias- cogeneration 26991.8 Total1,2405,539100

9. 50 + Years of Manufacturing Excellence!Since 1959 PETRO THERMAL CONTRIBUTION IN ON THE INCREASE Electricty sub-sector

10. 50 + Years of Manufacturing Excellence!Since 1959 Who is paying for electricity

11. 50 + Years of Manufacturing Excellence!Since 1959 3.Energy at water and waste water industry Water infrastructure, globally, use large amounts of energy to operate. Providing reliable water and waste water services is a highly intensive energy activity. As a consequence of the rising cost, many water and waste water companies require to develop energy management strategies and implement energy conservation measures. Equipment upgrades and operational modifications should be incorporated to a comprehensive energy review and management strategy.

12. 50 + Years of Manufacturing Excellence!Since 1959 Typical efficiency measures in water pumping system Select the right pump size but incase of over designed pump already installed, provide variable speed drive, Install soft starters and PF correctors especially for big loads Downsize / replace impeller or replace with correct sized pump for efficient operation. Operate pumps near best efficiency point. Modify pumping system and pumps losses to minimize throttling. In multiple pump operations, carefully combine the operation of pumps to avoid throttling Replace old pumps by energy efficient pumps

13. 50 + Years of Manufacturing Excellence!Since 1959 4.The Regional Technical Assistance Programme (RTAP) facilitated by KAM RTAP to Finance viable Renewable Energy (RE) and Energy Efficiency (EE) investments in Kenya, Uganda and Tanzania. Will provide support in undertaking feasibilities studies To finance bankable projects with up to 75% of the cost. Programme meant to provide soft loans with long payback periods.

14. 50 + Years of Manufacturing Excellence!Since 1959 5.Way forward KAM highly recommends that the various water service companies prepare to undertake energy audits for their various facilities. KAM can facilitate that once data on production/service and energy consumption is provided. KAM will also commit to make follow ups on the various audited facilities to assist in implementation KAM will also provide information on the various training courses to be offered next year. Stakeholders should attend the relevant ones.

15. 50 + Years of Manufacturing Excellence!Since 1959 Thank You