Africa Clean Energy

Corridor

Yong Chen

Programme Officer for Asia and the Pacific

Suzhou, 8 November 2015

Africa: Power needed to

fuel economic growth

GDP growth in 2012: 4.3

% 2.4

%

Sub-SaharanAfrica

World average

x4By 2035

x3By 2035

Current electricity mix:

ACEC Objective

• Develop RE resources

and integrate renewable

power into grid

• Promote cross-border

trade of renewable

power

• Build on SAPP and

EAPP work and PIDA

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Africa Clean Energy

Corridor (ACEC)

ACTION PILLARS:

Zoning and Resource AssessmentIdentification of high resource zones for RE development.

Country and Regional PlanningConsideration of cost-effective RE options for power generation in national and regional plans.

Enabling Frameworks for InvestmentOpening markets to IPPs, reducing the costs of RE financing and facilitating power trade.

Capacity BuildingDevelopment of skills to build, plan, operate, power grids with higher RE shares.

Public InformationAwareness raising and promotion of the ACEC and its benefit.

Jan 2014Ministerial Communique signed to endorse ACEC Action Agenda.

1. RE Resource Assessment

and Zoning

Developing cost-effective renewable power plants in areas of

high resource potential and routes for the efficient

transmission of electricity to load centres.

A multi-criteria spatial analysis of renewable energy resources for the

identification of cost effective, realistically achievable RE resource

development zones/ project opportunity areas.

Objectives

• Provide countries with RE resource assessments, identifying realistically

achievable RE zones for future ground validation by the countries and

information for investors.

• Facilitate coordinated planning for development of RE resources.

• Inform long-term transmission planning and leverage existing and planned

electricity infrastructure to promote more rapid development of RE plants.

Scope of the Study

• Resource assessment and zoning for Wind, solar PV, and solar CSP

in the Eastern and Southern African Power Pool countries.

Renewable Energy Zoning

Overview of RE Zoning process

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Outputs of the study

• Report with methodology, assumptions and results

• Interactive PDF RE zones maps

• RE zones ranking and supply curve tool

• Maps on Global Atlas, and mapre.lbl.gov

• Input and output geospatial datasets to be open source and downloadable (if not proprietary)

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Swaziland:

• Grid Code adopted, and RE IPP policy under finalization

• RE being integrated into national energy policy and legislation

• Integrated resource planning under development

Mozambique:

• RE resources mapping for the whole country done

• RE feed-in-tariffs adopted

• Rural Electrification Strategy with RE focus revised for private sector involvement

• Measures for promoting small hydro under consideration

Zambia:

• Mapping of RE resources and development of feed-in-tariffs

• Integrated resource planning under development

Djibouti:

• RRA used as basis for a geothermal intervention of USAID

• Inclusion of RE in the electricity Master Plan and Electricity Law

• Tax exemption for all RE equipment

2.Enabling Frameworks

for Investment RRA: Impact in ACEC countries

Enabling frameworks will reduce investment risks, attract private

investments and ensure the transition towards a reliable power system,

based-upon renewables.

Regulatory Empowerment Project

• Needs-based advisory service facility

• Supporting effective governance frameworks

• Transferring global good practices

• Empowering relevant decision makers

• Regulatory work on Planning Governance Project initiated in Namibia

and Zimbabwe as well as in the SAPP region

• Supporting good governance for the development, maintenance and

implementation of long-term power system plans with RE.

2.Enabling Frameworks

for Investment

3. National and Regional

Planning

SPLAT Planning Model

Least-cost optimization tool

for African power sector

Investment needs 2015 to 2030:

USD 20-25Bn/yr in generation

USD 15 Billion/yr for T&D

4. Capacity Building

Develop skills and strengthen institutions to build, plan, operate,

maintain and govern power grids and markets with higher shares of

renewable electricity.

- Training workshops held for RE Zoning, SPLAT planning, governance

frameworks, rid integration of RE.

- Practitioner’s Guide for grid integration of variable RE

developed.

Sustainable Energy Market Place

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Market Place

Project Owner CProject Owner BProject Owner A

Project 3Project 2

Project 1

Project 6Project 5

Project 4

Project NProject 8

Project 7

Private

Equity

Commercial

BanksUtilities

Industrials /

IPP

Public

FinanceECAs

GuaranteeLoanMezzanineEquity Grant

Service

providers

Technical

Financing

EPC, O&M

Legal

GovernmentsProjects

Expertise

Enabling

environment,

facilitation

Financing

Enabling

frameworks

Investment

opportunities

Country level

facilitation

Other

ACEC ImplementationFramework

ACEC Implementation

Framework

Policy Consultative Forum: facilitating strategic policy

dialogue between decision makers.

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PCF

Regional Institutions

Key Regional Fora:AMCEN, AU STC, AELG,

AU Summit

Ministries

Key Financing Institutions and

Development Banks

Development Partners

Civil Society and key stakeholder groups

Power PoolsRegulatory Bodies

Thank you for your attention!

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IRENA’s engagement in West Africa: RRA

Senegal

Adoption of the Decree No. 2011-2013 providing conditions of

power purchase and remuneration for electricity generated by RE

plants and the conditions of their connection to the grid;

• Adoption of the Decree No. 2011-2014 provides the conditions of

power purchase of surplus RE-based electricity from self-producers

• Development of FiT for RE with the support of EU

• WB- strategy and action plan on RE deployment in Senegal

Niger

• New rural electrification agency created

• Reallocation of part of the tax on electricity for rural electrification as

part of the internal resource mobilization mechanism for RE

promotion 16

IRENA’s engagement in West Africa: RRA

The Gambia

• Enactment of Re law and establishment of RE fund

• GREC revived, capacity building activities for key stakeholders of

the RE sector

• Development of standards and labels for RE equipment

Mauritania

• The Government is taking concrete steps for various fronts to

promote RE based off-grid electrification options

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IRENA’s engagement in

West AfricaIRENA – Abu Dhabi Fund for Development (ADFD) funded projects:

• Mali (USD 9m, 4MW hybrid solar-diesel for 30 villages)

Loan agreements signed, under implementation, Government co-funding.

• Mauritania (USD 5m, 1MW wind)

Loan agreements signed, under implementation, UNDP GEF co-funding.

• Mauritania (USD 6m, 1MW hybrid wind-solar PV-hydro)

Site appraisals scheduled.

• Sierra Leone (USD 9m, 4MW grid connected solar PV)

loan agreements signed, under implementation, IsDB and ECREEE co-funding.

System Planning Test (SPLAT)

Least-cost energy supply options are explored under different policy assumptions for West

African Power Pool countries. Trainings on the use of this tool planned in October/

November.

Next steps:

• Technical stakeholder meeting in September/ October in West Africa for identifying

elements for a West – ACEC action agenda

• Endorsement of the Action Agenda by Ministers/the Region.

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