KE Electricity Modernization Project

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The project development objectives for the Electricity Modernization Project for Kenya are: (a) to increase access to electricity; (b) to improve reliability of electricity service; and (c) to strengthen KPLC’s financial situation. The project is comprised of four components. The first component, improvement in service delivery and reliability, is made up of three subcomponents: i) upgrade of the supervisory control and data acquisition/energy management system, ii) distribution system enhanced flexibility, and iii) enhance maintenance practices to improve the reliability of electricity supply. The objective of the second component, the revenue protection program, is to permanently protect the revenues that KPLC receives from sales to large and medium customers, ensuring that all users in that high value segment are systematically billed according to accurately metered consumption and thus reduce non-technical losses. The component will include: (i) creation of one or more Metering Control Centers (MCCs) and investments in IT infrastructure needed to operate them; (ii) incorporation of state-of-the-art Meter Data Management software and training of staff in the MCCs in its proper use; and (iii) supply and installation. The third component, the electrification program, will support the government’s objective of 70 percent household connectivity by 2018 by providing grant financing for the connection of new households thus introducing a more cost-effective and suitable source of funding for electrification investments. There are two sub-components within this component: i) peri-urban electrification will finance the design, materials and construction works required to electrify all households and businesses in high population density peri-urban areas located close to existing electricity networks, ii) off-grid electrification will support the implementation of off-grid electrification solutions in areas whose connection to the national grid is not viable in the short and medium term. Electrification of those areas will be implemented through mini-grids supplied preferably by hybrid generation systems. Finally, the fourth component, technical assistance and capacity building will finance consultancy services, feasibility studies for new investments, training and other activities to support, among other: i) Preparation of the National Electrification Strategy, ii) detailed national technical specifications and standardization, iii) regulations for enforcing quality on electricity service delivery, iv) project preparation support for feasibility studies for new investment as required and project monitoring and evaluation, and v) training and capacity building.