Empowering Development
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1 Empowering Development Sustainable Energy and Climate Change European Commission Directorate-General for International Cooperation and Development
2 Global Vision Sustainable Energy for All (SE4ALL) initiative UN 2030 Agenda for Sustainable Development, SDG7 and SDG Paris Agreement on climate change Goal 7: universal access to affordable, reliable, sustainable and modern energy by 2030 Goal 13: Take urgent action to combat climate change and its impacts COP23 Bonn 2017 G7 and G20 energy, climate and development groups
3 EU Vision Increase access to renewable energy Increase renewable energy generation capacity and energy efficiency Contribute to fight against climate change Special focus: Africa Council Decision on Climate and Energy 2014 Council Conclusions on Energy and Development 2016 European Consensus for Development 2016 CC on Energy and Climate Diplomacy 2017
4 3 pillars of cooperation Political ownership of reform agenda 21 Joint Declarations Africa Renewable Energy Initiative (AREI) Africa-EU Energy Partnership Contribution to National/Regional Indicative Programmes with EUR 3,7 bn Covenant of Mayors for Sub-Saharan Africa Implementation of Paris Agreement (NDCs) and the SDGs: GCCA+ and mainstreaming (20% budget climate relevant) Capacity building Technical Assistance Facility (TAF) Investments Blending facilities ElectriFI, Women and Sustainable Energy
5 Targets for Africa EUR 2.7 billion to sustainable energy in Sub-Saharan Africa for aiming at enabling access to 30 million people via 5 GW of renewable energy saving 11 million tco2e/year Supporting African partners implementing their NDCs and the 2030 Agenda (through specific climate programmes like the Global Climate Change Alliance (GCCA+) and mainstreaming
6 Africa Renewable Energy Initiative (AREI) EU strongly supports AREI objectives, guiding principles and criteria EU commitment: EUR 1.5 billion to support 5GW of new renewable energy by 2020 (half AREI objective by 2020) Enhanced cooperation through existing instruments: Ensuring country ownership and local socio-economic development
7 AREI: History and State of Play Launched by African leaders at COP21, December 2015 Endorsed by African Union Commission (Summit of Kigali 2016 and Addis Ababa 2017) Governance structure under discussion (task force established) Technical meetings with IDU and partners Conakry 2-3 March Second Board meeting Conakry 4 March When operational: complementarity with the External Investment Plan (EIP)!
8 AREI: making progress First 19 EU AREI projects approved (March AREI Board, Conakry) Expected generation capacity: 1.7 GW Indicative EU contribution: 300 million Potential investment: 4.8 billion Guinea, Nigeria, Benin, Niger, Chad, Rwanda, Ethiopia, Tanzania and regional (Central Africa, Indian Ocean Islands) Paving the way for AREI: intensified cooperation with EU IFIs and private sector to accelerate projects identification and implementation High level roundtable on renewable energy private sector (April 2017) Renewable energy high-level business Forum (EDDs, June 2017) Renewable energy & green economy Forum (Conakry, October 2017) Sustainable Energy, Africa EU Summit (Abidjan, November 2017)
9 Project example: BAUCHI Solar - NIGERIA Lead financier: African development Bank (AfDB) Budget total: USD million EU Contribution: USD million to be confirmed Generation capacity 100 MW Estimated impact: - Approx. 164,084 MWh of electricity per year - 2.5% increase of Nigeria's generating capacity - Approx. 2,750,000 additional households with access to electricity - 79,860 tons of CO2 per year inhibited
10 ElectriFI Investment facility To increase access to renewable energy (mainly decentralised) With the private sector Sharing high-risk in projects business plan with loans Ticket size: min. EUR 500k - max. EUR 10mln (Small- to medium-scale) Product range: Equity, Quasi-equity, Debt and Development Finance
11 ElectriFI st Call > 290 applications received 19 applications pre-selected In Africa: 3 preparing for Clearance in Principle 4 already cleared 2 approved in Kenya, Tanzania nd Call > 155 applications received evaluation is ongoing 65 project host countries Business models: IPP (state or municipal offtaker), Utility (Mini-/Micro-/Nano-Grids), SHS, Captive Power - Private off-taker, Mobile power unit, telco tower
12 Africa Renewable Energy Scale-Up Facility (ARESUF) 1 million households with 240 MW on-grid and 50 MW off-grid renewable energy 24 M from European Union through AFD and Proparco reinforce public sector actions: public policy, sector planning and regulation, transparent tender preparation for IPP on-grid projects, develop national rural electrification sector strategies recognizing privately led off-grid activities support private sector projects in the off-grid and mini-grid sub-sectors
13 THANK YOU Please visit:
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