Energy Business Opportunities in the East African Community. Peter N. Kinuthia Senior Energy Officer East African Community Secretariat
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1 Energy Business Opportunities in the East African Community Peter N. Kinuthia Senior Energy Officer East African Community Secretariat
2 Introduction to East African Community Snapshot of EAC Energy Sector Energy Resources in East Africa Business Opportunities Conclusion
3 The East African Community (EAC)
4 The East African Community (EAC) is the regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, Uganda and the United Republic of Tanzania EACwasestablishedbyTreatyon30 Nov 99; its headquarters are in Arusha, Tanzania Objective is to widen and deepen economic, political, social and cultural integration to improve the quality of life of the people of East Africa through increased competitiveness, value added production, trade and investment.
5 Country Area ( 000 sq. km) Population (2010) (Million) GDP at Current Market Prices Million US$ GDP per Capita at Current Prices US$ Real GDP Growth Rates (2010) % Burundi , Kenya , Rwanda , Tanzania , Uganda , Total 1, ,
6 The East African regional integration is a progressive process through four major pillars Movement from one level of integration to another is through negotiated protocol Customs Union Common Market No duties for intra EAC goods and Common External Tariff Monetary Union free movement of people, capital, labour, services and right of establishment and residence Political Federation complete social, cultural and economic integration with common foreign and security policies Common monetary policy and a single currency
7 Role: to facilitate realisation of EAC s broad objectives of socioeconomic development, increased competitiveness, value added production, trade and investment. Development Objective: increased access to sufficient, reliable, affordable and environmentally sound energy sources in the Region Organized into three sub sectors: Fossil Fuels Power New and Renewable Energy Sources and Energy Conservation and Efficiency 7
8 East Africa is endowed with various energy resources spread throughout the region However, most of the resources remain underdeveloped or untapped Region is characterised by High dependence on traditional energy sources biomass Low access to modern energy services Low per capita energy consumption approx 132kWh Development of energy resources is, therefore, crucial for stimulating investments in the region
9 Tables below shows approx %age proportion of final energy consumption Burundi Kenya Rwanda Tanzania Uganda Biomass Petroleum Electricity Others Total
10 MW
11 Norwegian support to EAC Largest contributor to East African Petroleum Conference and Exhibition held every two years since 2003 Annual Petroleum Data Management Seminar since 2007 Regional Strategy on Scaling Up Access to Modern Energy Services Feasibility Study for Singida Arusha Nairobi 400kV Transmission Line Other support at national level
12 Studies Consultancy Services required for the following studies Fossil Fuels Master Plan Prudent Management of Petroleum Revenues Feasibility Study for Kampala Kigali Bujumbura Oil Pipeline Harmonisation of Petroleum Policies, Fiscal Regimes and Procedures EA Petroleum Conference & Exhibition (6 8 Mar 13) Exhibition and/or Presenting papers or posters Conducting Pre Conference Workshop
13 Oil Refinery in Uganda Feasibility Studies on the Refinery completed 60,000 barrels per day capacity to be implemented in 3 phases GOU has invited Partner States to co invest as part of the public share of the PPP Natural Gas Pipelines Dar es Salaam Tanga Mombasa (Feasibility Study complete) Tanzania Natural Gas Master Plan almost complete (business and investment opportunities expected)
14 Oil and Gas Exploration and associated services in all Partner States Downstream Retail services liberalised Opportunities for distribution and retail services
15 Snapshot of EAC Power Sector Burundi Kenya Rwanda Tanzania Uganda Generation REGIDESO KenGen EWSA TANESCO UEGC IPPs IPPs IPPs IPPs GDC Transmission REGIDESO KPLC EWSA TANESCO UETCL KETRACO Distribution REGIDESO KPLC EWSA TANESCO UMEME + concessions Rural Electrification X REA X REA REA Regulation X ERC RURA EWURA ERA
16 Projects under the Power Master Plan Priority generation and transmission line projects Singida Arusha Nairobi 400kV interconnector by 2016; Masaka Mwanza 220kV interconnector by 2016; Rusumo Nyakanazi 220kV interconnector by 2016; Rusumo Kigali 220kV interconnector by 2016; Rusumo Bujumbura 220kV interconnector by 2016; Stieglers Gorge hydro power project 2100MW by 2017; Kiwira coal plant in Tanzania 200MW by 2016; Rwanda Peat to Power to generate 400 MW by 2016; Burundi Peat Power Plant 200MW by Ayago hydro power plant 600MW by 2018; and Rusumo Hydro Power plant 90MW by 2016.
17 Small Hydro Projects throughout the region Contact Rural Electrification Authorities and Regulatory Authorities Development of Integrated Regional Energy Market Strategy Subsector Master Plans Regional Energy Policy Legal and Regulatory Framework in line with the policy Regional Investment Code Establishment of EAC Power Pool
18 Studies Consultancy Services required for the following studies Renewable Energy and Energy Conservation and Efficiency Master Plan Creation of a Regional Renewable Energy, Energy Conservation and Efficiency Centre Distribution and Installation of Renewable Energy and Energy Efficiency Systems Regional Strategy on Scaling Up Access to Modern Energy Implementation of various projects and programs
19 East Africa is endowed with many energy resources but most of the resources remain underdeveloped or untapped Low Energy Access Levels in EAC present enormous untapped opportunities for investment and business in the energy sector There are ready business opportunities in fossil fuels, power and renewable energy sectors Policy, legal and regulatory framework in the energy sector supports private sector participation Favourable business environment exists and EAC is working hard to make it even better
20 Peter N. Kinuthia
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